1998 (9) TMI 268 - AT - Central Excise

Summary

Issues:
Classification of the product "Ossidos" under Tariff Item 1B or Tariff Item 14E of the Central Excise Tariff.

Analysis:
1. The main issue in this appeal was the classification of the product "Ossidos" under the Central Excise Tariff. The appellant argued that the product should be classified under Tariff Item 1B as a food supplement, citing various certifications and previous decisions supporting their claim. They emphasized that the product was based on protein and carbohydrates, with added minerals and vitamins for natural growth and nutrition. The appellant also highlighted that similar products had been classified as food supplements under Item 1B in previous cases.

2. The respondent countered by pointing out that "Ossidos" contained therapeutic vitamins and minerals, making it more than just a food supplement. They argued that the product's composition and intended use did not align with the essence of food as required for classification under Tariff Item 1B. The respondent referred to expert opinions and previous decisions where similar products were classified as patent or proprietary medicines under Tariff Item 14E due to their therapeutic properties.

3. The Tribunal considered both parties' submissions and examined the product's composition and certifications. They noted that the Food and Drugs Administration certified that "Ossidos" did not fall under the category of drugs. The Tribunal also highlighted the lack of expert opinion from the Revenue to challenge this certification. They referenced a previous case where a similar product was classified as a food supplement based on trade parlance and commercial understanding, emphasizing the onus on the Revenue to prove classification.

4. In their analysis, the Tribunal relied on precedents and legal interpretations to determine the classification of "Ossidos." They referenced the judgment of the Madhya Pradesh High Court and previous decisions involving similar products. The Tribunal also considered the certification from the Food and Drug Administration and the absence of evidence supporting the product being marketed as a drug. Following the legal principles and precedents, the Tribunal concluded that "Ossidos" should be classified under Tariff Item 1B as a food supplement, thereby allowing the appeal.

In conclusion, the judgment of the Appellate Tribunal CEGAT, New Delhi classified the product "Ossidos" under Tariff Item 1B of the Central Excise Tariff as a food supplement based on the product's composition, certifications, expert opinions, and legal precedents. The decision highlighted the importance of trade parlance, commercial understanding, and expert certifications in determining the classification of products under the Central Excise Tariff.