2005 (8) TMI 149 - AT - Central Excise

Summary

Issues:
Classification of the item "ITEOL-3" under chapter sub-heading 3808.90 as a disinfectant or as a medicament under Heading 30.03 of the CET Act, 1985.

Analysis:
The appeal in question arose from Order-in-Appeal No. 54/03, where the Commissioner (Appeals) classified the item "ITEOL-3" as a disinfectant under chapter sub-heading 3808.90. The appellants contended that the item was manufactured under the Drug Control Act and should be classified as a medicament under Heading 30.03 of the CET Act, 1985. The Tribunal had previously considered a similar issue in the case of Sarvotham Care Ltd. v. CCE, Hyderabad, where the item was classified under sub-heading 3003.10. The appellants argued that, in light of this precedent and the judgment in the case of ICPA Health Products (P) Ltd. v. CCE, Vadodara, the appeal should be allowed. The Departmental Representative (DR) argued that a Board Circular had classified the item as a disinfectant, which should be considered.

Upon careful consideration, the Tribunal noted that the apex Court had already classified a similar product, Hexiscrub and Hexiaque, used for wound cleansing and disinfection, under sub-heading 3003.10. It was established that the item in question was used by doctors for sterilization of hands before surgery and for wound cleansing and disinfection, indicating therapeutic and prophylactic properties, thus falling under chapter sub-heading 30.03. Since the item was manufactured under a license from the Drug Controller, the facts of the case aligned with the precedent set in the Sarvotham Care Ltd. case. Therefore, following the same legal reasoning, the Tribunal set aside the impugned order and allowed the appeal.

In conclusion, the Tribunal's decision was based on the classification of the item "ITEOL-3" as a medicament under Heading 30.03 of the CET Act, 1985, due to its therapeutic and prophylactic properties, consistent with previous judgments and legal principles.