TMI Blog2003 (8) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant in the manufacture of the medicines had therapeutic value, then they can, according to the CBEC circular be classifiable only under Tariff Entry 30.30 and not 13.03. In favour of assessee. - 351 of 2001 - - - Dated:- 28-8-2003 - Ruma Pal and S.B. Sinha, JJ. [Order]. - The appellant manufactures medicinal products out of herbal extracts. The questions which have arisen in this appeal, inter alia, are whether the extracts were goods for the purpose of the Central Excise Act and if so, whether they were classifiable under Chapter 13 or 30 of the Act. 2.The appellant carries on its business both in West Bengal as well as in Uttar Pradesh. Demands were raised in respect of the period 1-8-1990 to 28-2-1994 by Revenue Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "PHARMACEUTICAL PRODUCTS Heading No. Sub-Heading No. Description of Goods Rate of Duty (1) (2) (3) (4) 30.03 — Medicaments (including veterinary Medicaments) 3003.30 Medicaments, including those used in Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems. 15% " 7.Extracts of the Chapter note in connection with the relevant entry which have been relied upon by the appellant assessee are quoted verbatim : For the purpose of Heading No. 30.03 :"2. 'Medicaments' means goods (other than(i) foods or beverages such as dietetic, diabetic or fortified foods, tonic beverages) not falling within Heading No. 30.02 or 30.04 wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value". However, on the ground that the extracts themselves could not be used as medicaments, it was held that they were properly classifiable under Chapter 13 and not in Chapter 30. 10.The Commissioner's interpretation of the tariff item was made without reference to the CBEC circular. His conclusion that only products which are capable of being put to therapeutic was prophylactic used as such i.e. without further processing etc. would qualify for classification as medicaments under Chapter 30 is not in keeping with the interpretation given by the Board nor indeed the interpretation given by the Commissioner of Central Excise, Calcutta. The Circular makes it quite clear that if the compound vegetable extracts had any therapeutic or proph ..... X X X X Extracts X X X X X X X X Extracts X X X X
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