Central Excise - Classification of 'ITEOL-3' - Whether under Heading 30 or 38 - Clarification regarding - Central Excise - 7/92-CX.3

Central Excise - Classification of 'ITEOL-3' - Whether under Heading 30 or 38 - Clarification regarding Circular No. 7/92-CX.3 Dated 29-7-1992 [From F. No. 112/39/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Classification of 'ITEOL-3' - Whether under Heading 30 or 38 - Clarification regarding. Doubts have been expressed regarding classification of the product ITEOL-3 manufactured by M/s. Astra IDL Ltd., which has been described as a powerful germicide suitable for all medical, surgical, household and personal uses. The issue came up for discussion in the South Zone Tariff Conference held at Madras on 26th and 27th September, 1990. The matter was further examined by the Board in consultation with the Drugs Controller of India and the Chief Chemist, CRCL, New Delhi. 2. Keeping in view the opinion of the Drugs Controller of India and the Chief Chemist, CRCL, New Delhi, the Board feels that the product ITEOL-3 manufactured by M/s. Astra IDL Ltd., is appropriately classifiable under sub-heading 3808.90 of the CET as a disinfectant. 3. Accordingly, it is clarified that the product ITEOL-3 manufactured by M/s. Astra IDL Ltd. is appropriately classifiable under sub-heading 3808.90 of the CET as a disinfectant. 4. All pending assessments may be finalised on the above basis. Lower field formations may be advised suitably. The trade may also be informed accordingly. D.G.H.S. The product ITEOL-3 manufactured by M/s. Astra IDL Ltd. has the following composition : Dichloroxylenol BPC (1959) 1.5% w/v Essential Oil Mixture (Aronetics) 6.0% v/v in a suitable base. The product has been indicated as an anticeptic/disinfectant for medical, surgical, household and personal use. The product is being manufactured as a 'drug' under licence from the Drugs Control authorities, Karnataka. According to Martindale's Extra Pharmacopoeia, the term 'Disinfectant' applies to a chemical agent which destroys micro-organism but not usually bacterial spores; it does not necessarily kill all micro-organism but reduces them to a level which is harmful neither to health nor quality of perishable goods. The term 'Antiseptic' is applied to a chemical agent which destroys or inhibits micro-organisms or living tissues having the effect of limiting or preventing the harmful results of infection. Antiseptics are indicated for the prevention of infection due to pathogenic micro-organisms. The drug Dichloroxylenol has been stated to be a bactericide and is indicated for washing of wounds, external use in obstetrics skin disinfectant and general disinfectant. However for the classification of the product under CETA, 1985, the Ministry of Finance may also take into account the classification of other similar products for the purpose of a uniform policy. DGHS U.O. No. X.11048/l/92-D, dated 5-3-1992 C.R.C.L., New Delhi The query raised in the file is whether a registered brand name product viz., ITEOL-3, would merit classification under Heading 30.03, 33 or 38.08 of the Central Excise Tariff. ITEOL-3 is stated to be a mixture of Dichloroxylenol BPC 1959 - 1.5% w/v; essential oil mixture (aromatics) - 6.0% v/v in a suitable base. It is reported to be a clear golden liquid with a pleasant refreshing smell and forms milky white emulsion when diluted with water. It is described as all purpose antiseptic. Chloroxylenol is a disinfectant of low toxity, which is active against streptococoi but less active against stephylococci and almost inactive against certain grain-negative organisms. It is inactive against bacterial spurese. Its activity is used chiefly in the form of chloroxylenol solution. Dilutions are = for wounds 5%; for external use in obstetrics 2.5%; for the disinfection of instruments 5% in 70% alcohol. A tincture containing chloroxylenol 1.44% is used undiluted for preparative skin disinfection. It is a well-known non-irritant bactericide. No information regarding advertised use and properties and mode of application is available in the file. In general the classification of a product under Heading 30, 33C or 38 would depend upon the manner in which the product is put up for sale and its application. However, from the composition it does not appear to be covered under any of the headings of Chapter 33. As seen from Note 2(i) of Chapter 30 read with the Explanatory Notes of HSN at page 438, for a product to fall under Heading 30.03, it should be put up in a form having the essential character of medicaments. The packing should contain broad indications of diseases or condition for which it is to be used, method of use or application, statement of dose, etc., indicative of its use as medicines. If the product satisfies the above requirements, it would merit classification under Heading 30.03 as "Patent or Proprietary Medicament". It is not clear whether the product contain alcohol. In case it contains alcohol it will stand excluded from Chapter 30 by virtue of Note 4. If the classification of the product could be ruled out under Heading 30 and 33 on the basis of the manner in which it is put up for sale, its classification under Heading 38.08 seems to be more appropriate.