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2023 (3) TMI 902 - AT - CustomsClassification of imported goods - import of a consignment of 270 Kg ‘Saccharomyces Boulardii’ in bulk, valued at Euro 80190 (CIF) - Department was of the view that the goods are rightly classifiable as yeast under chapter 21 and not under CTH 29183090 as ‘Carboxylic acid’ - whether the imported goods merit classification under 29183090 as adopted by appellant or under 21021090 as determined by the Department? HELD THAT:- It is very much clear that the goods do not merit classification under Chapter 29. The appellant though classified the goods under Chapter 29, now contends that the classification determined by department is incorrect for the reason that Chapter 21 excludes yeast put up as medicament or other products of heading 3003 or 3004. From the Safety Data Sheet itself it is clear that lactose is added as auxiliary for lyophilization. It is not an ingredient added to make it a medicine. Lyophilization is nothing but freeze drying. It is just a stabilizing process to preserve a perishable product for the convenience of transport. On the samples placed before us it is mentioned as “Saccharromyces Boulardii” and does not mention the ingredient of lactose, so as to consider it as an ingredient added to make it a medicament - The appellant has furnished medical literature to argue that Saccharromyces Boulardii is used as medicine for diarrohea. However, there is no evidence to show that this product is known in the market in ordinary parlance as a medicament for gut related problems. Thus in fact though much medical literature has been placed to contend that Saccharromyces Boulardii can be used in the treatment of gut related problems there is no evidence to establish that it is known as a medicament. The appellant has failed to show that it is sold as a medicine for diarrhoea. Merely because the appellant has been issued a License by the Drugs & Cosmetics Act, it cannot be said that the imported goods are known and understood as medicine. In the case of M/S. ZYMONUTRIENTS PVT. LTD. VERSUS COMMISSIONER OF CUSTOMS, CHENNAI [2019 (11) TMI 1287 - CESTAT CHENNAI], the Tribunal followed the decision in the case of Kasturi Foods and Chemicals [1994 (12) TMI 208 - CEGAT, NEW DELHI] to hold that the goods imported are to be classified under Chapter 21 as determined by the Department. The decisions passed by the Tribunal as to the classification in the case of Kasturi Foods and Products Ltd. as well as in the case of M/s. Zymonutrients Pvt. Ltd. would apply and the impugned goods are to be classified under Chapter 21 as determined by the Department. The issue is answered in favor of revenue and against the appellant. Appeal dismissed.
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