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CCE. Indore Versus M/s. Plethico Pharmaceuticals Ltd.

2015 (4) TMI 732 - CESTAT NEW DELHI

Classification of goods - classification of the tablets called actifresh, pletico mint, plethico byte and travisil - Held that:- Ice mint tablets with the base of sugar and containing menthol are not ayurvedic medicines falling under chapter 30, but are sugar confectionery falling under heading 1704 of the central excise tariff. According to the respondent this judgment had been set aside by the apex court vide judgment dated 03.08.1999 reported in [1999 (8) TMI 75 - SUPREME COURT OF INDIA]. How .....

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ad adduced arguments for classification of the ice tablets as sugar confectionery under heading 1704.

Heading 1704 of the central excise tariff is based on the HSN heading 17.04. Therefore, the scope of heading 17.04 of the central excise tariff would be same as the scope of the HSN heading 17.04. Heading 17.04 of the central excise tariff and heading 17.04 of the HSN cover sugar confectionery (including white chocolate, not containing cocoa) - Each table of Actifresh consists of 1495 .....

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iable as sugar confectionery unde heading 1704 as the pudina ark is only a mouth freshener or flavoring agent.

As regards, plethico byte , each tablet of which grm, in addition to sucrose and liquid glucose base contains 2.5 mg of mulethi, the same would be classifiable as ayurvedic medicine under heading 3004 as mulethi acts a therapeutic agent for sore throat.

As regards, travisil , each tablet contains extracts of adussa, pipal, black pepper (kali Mirch), dry ginger (sau .....

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nt as medicines for sore throat/ cough would be correctly classifiable as ayurvedic medicine under heading 3004 of the Central Excise Tariff. Accordingly, we uphold the impugned order with regard to classifiacation of these products. However, as discussed above, the other two products actifresh and plethico mint which are basically mouth fresheners are correctly classifiable as sugar confectionery under heading 1704 of the tariff and in this regard the impugned order is not correct, and the same .....

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- Final Order No. 50637 /2015-Ex(Br) - Dated:- 16-3-2015 - Hon'ble Mr. Rakesh Kumar, Member (Technical) And Hon'ble Mr. S.K. Mohanty, Member (Judicial),JJ. For the Appellants : Mr. R.K. Grover, DR For the Respondent : None ORDER Per Rakesh Kumar (for the Bench): The facts leading to filing of this appeal by the Revenue are, in brief, as under:- 1.1 The respondent manufacture the products named Actifresh , Plethico Mint , Plethico Byte , Travisil Lozenges and Plethico Khalo G Aam/ imli e .....

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e remaining contents are sucrose and liquid glucose and the very small quantity of citric acid orange flavor and sunset yellow colour. In case of product travisil , each unit of 3 grm contains 0.23 mg of ayurvedic extracts and the remaining contents are mainly sugar (sucrose & glucose) with very small quantity of chocolate brown colour, menthol lemon flavor and ginger oil. In case of plethico mint , each unit contains 0.15 MG of Pudina ark and the remaining content is of sugar and glucose. T .....

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ould also be classifiable as sugar confectionery under heading 1704.90 of the tariff. It is on this basis that the Show Cause Notice were issued for classification of these products as sugar confectionery under sub-heading 17049090 of the tariff and demand of differential duty along with interest and also for imposition of penalty under Rule 25 of the Central Excise Rule 2002. The two Show Cause Notice dated 06.02.2008 and 24.04.2008 issued for classification of Products, in question, as sugar c .....

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ile appeal before Commissioner (Appeals) under section 35E(2) read with section 35E(4) of the Central Excise Act 1944. These reviewed appeals were decided by the Commissioner (Appeals) vide order in appeal dated 19.11.2009 by which the Revenue s appeal were dismissed. Against this order of the Commissioner (Appeals), this appeal has been filed. In respect of the Revenue s appeal, the respondent has file a memorandum of cross objection registered as E/CO/105/2010-Ex. 2. Heard both the sides. 3. N .....

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ampre Nutritions Ltd. vs CCE Hyderabad reported in 2004 (169) ELT 42 (Tri. Bang) wherein the Tribunal held that Vicks vitamin-C / mango tablets are not P&P medicines classifiable under chapter 30 of the Central Excise tariff but are sugar confectionery classifiable under heading 1704 of the tariff, and also the tribunal s judgment in the case of Kushal Confectionery and Pharma Ltd. vs CCE Chandigarh reported in 2000 (116) ELT 271 (Tri.) wherein the tribunal held that Honey Herb , Churyum dro .....

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ed by any Vaidya/ Doctor nor a products indicate any doses for any limited time and hence the same do not merit classification as ayurvedic medicine. He also pleaded that though the apex court in its judgment in the case of Warner Hindustan Ltd. vs Collector of Central Excise reported in 1999 (113) ELT-24(SC) has set aside the tribunal s order reported in 1989 (42) ELT 33, the apex court has not overruled the Tribunal s decision on the merits of the case but on the ground that the Tribunal had c .....

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Ld. DR and have perused the records. The dispute in this case is about classification of the tablets called actifresh , pletico mint , plethico byte and travisil . The composition of these products is discussed in the SCN. The actifresh consists mainly of Sucrose and liquid glucose and the active ingredients in it is pudina ark and nilgiri oil, Nilgiri Oil is nothing but eucalyptus oil. One tablet of actifresh contains 1495 mg of sucrose, 990.3 mg of liquid glucose, 4.8 mg of pudina ark (contai .....

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0006 mg of flavored ginger oil and 0.23 mg of ayurvedic extracts consisting of various herbs like kali mirch, mulethi, haldi, saunth, sat-pudina, katha, baharda, chirmitri patra, amla etc. This Travisil Lozenges are marketed as cure for sore throat. Each tablet of plethico mint besides the sugar/ glucose based contains 0.15 mg of pudina ark. According to the Department, all these products are sugar confectionery falling under heading 1704 of the central excise tariff while according to assessee .....

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respondent this judgment had been set aside by the apex court vide judgment dated 03.08.1999 reported in 1999 (113) ELT 24 SC. However, on going through the apex court judgment, we find that the Tribunal s judgment in the case of Warner Hindustan Ltd. vs CCE (supra) classifying ice mint tablets as sugar confectionery under heading 1704 had not been set aside on merit but had been set aside on the ground that on the Department s appeal against the Tribunal s order, the Tribunal for the first time .....

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uding white chocolate, not containing cocoa) . In terms of explanatory notes to HSN heading 1704, this heading includes: preparations put up as throat pastilles or cough drops consisting essentially of sugar (whether or not with other food stuffs such as gelatin, starch or flour) and flavoring agents including substances having medicinal properties such as Benzyl alcohol, Menthol, eucalyptol oil and tolu balsom. However, throat pastilles or cough drops which contain substances having medicinal p .....

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ch is nothing but eucalyptus oil. In view of the HSN explanatory notes mentioned above, actifresh would be classifiable as sugar confectionery under heading 1704, as the ingredients are mainly flavoring agents not having any therapeutic value. For the same reason, plethico mint tablet which, in addition to the sugar/glucose base contains 0.15 mg of pudina ark would be classifiable as sugar confectionery unde heading 1704 as the pudina ark is only a mouth freshener or flavoring agent. 9. As regar .....

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ct, though with a base of sugar/ glucose has ingredients based on various herbs which have therapeutic value for giving relief in case of sore throat; the same would be classifiable under heading 3004 of chapter heading 30 of the central excise tariff. 11. One of the objections of the Department is that in respect of the products, in question, the percentage of medicament is very small and also no doses are prescribed and, therefore, these products do not merit classification under chapter 30. H .....

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