9911796707
TMI Blog2005 (3) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... id product was cleared in unit containers bearing the following printed particulars labelled thereon. SAFEZ Each 15 ml. contains Protein Hydrolysate (15% Min.Cal) 2 gms. Ferric Ammonium Citrate IP 300 Mg. Folic Acid IP 750 Meg. Zinc Sulphate IP 40 Mg. Vitamin B12 IP 05 Meg. The original authority classified the above goods under SH. 3003.10 as medicament and raised consequential demand of duty of Rs. 58,372/- on the party. The first appellate authority disagreed with the lower authority and held that the item was classifiable under Heading 21.07 as a food substitute and granted consequential benefit of SSI exemption to the assessee. In the present appeal, the Revenue is aggrieved by the decision of the Commissioner (Appeals). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff and also that the predominant usage of the subject product required to be taken into account while determining its classification. According to ld. DR, if the guidelines laid down by the Supreme Court in the said case were followed, in the classification of the product in question, the product would be classifiable under Heading 30.03 only. 3. Ld. Counsel for the respondents argued that any description or declaration on product label was not to be a determinant factor in the classification of the product. According to him, it was the opinion of the Drug Control authority which was decisive on the question whether a given product was to be classified as medicament or not. In this connection, reliance was placed on the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the subject product was comparable to protein substitutes containing spirulina. Ld. Commissioner (Appeals), however, has not substantiated this point. In the instant case, the assessee declared on the product label that the syrup was to be used for therapeutic purpose. No other use was suggested on the label. It also appeared from the dosage mentioned on the product label that the syrup had to be administered in terms of doctor's prescription. Yet another strong indication of the product being a medicament is that the two minerals (Ferric Ammonium Citrate and Zinc Sulphate) and the two vitamins (Folic Acid and Vitamin B12) used as ingredients of the product were shown to be of pharmaceutical grade. It appears to us that, where the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, etc. and containing added vitamins and sometimes minute quantities of iron compounds. These preparations are often put up in packagings with indications that they maintain general health or well-being. Similar preparations, however, intended for the prevention or treatment of diseases or ailments are excluded Heading 30.03 or 30.04." It was argued by ld. Counsel that the syrup in question was a preparation which could be referred to as a "food supplement" as it contained added vitamins and minerals. However, this by itself is not enough to hold that the syrup is a food classifiable under Heading 21.07 inasmuch as the HSN Note says that similar preparations intended for the prevention or treatment of diseases or ailments are excluded fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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