Medicaments classification for antiseptic surgical preparations accepted over cleansing-preparation heading.

Povidone iodine cleansing solution USP and Wokadine Surgical Scrub were treated as medicaments because their iodine content gave them antiseptic and disinfectant properties, and the added surfactant and stabiliser did not change their primary therapeutic and prophylactic character. Their hospital and surgical use, together with presentation and packing, supported classification as pre-operative antiseptic products rather than ordinary cleansing preparations. Note 1(e) to Chapter 30 did not exclude them because their dominant function was not soap or a Chapter 34 preparation. The goods were therefore classified under Chapter 30 and not Heading 3402.90.

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Issues: Whether povidone iodine cleansing solution USP and Wokadine Surgical Scrub are classifiable as medicaments under Chapter 30 of the Central Excise Tariff Act, 1985 or as cleansing preparations under Heading 3402.90.

Analysis: The products contained povidone iodine in a concentration sufficient to confer antiseptic and disinfectant properties. The added surface-active agent and stabiliser were found to assist dispersal and presentation, but not to alter the primary therapeutic and prophylactic character of the goods. Their actual use was in hospitals, nursing homes, clinics and surgical settings, and the presentation and packing supported their use as pre-operative antiseptic products rather than ordinary cleansing preparations. The exclusion in Note 1(e) to Chapter 30 applied to goods whose primary character remained soap or Chapter 34 preparations, and did not prevent classification in Chapter 30 where the primary function was therapeutic or prophylactic. The Harmonised System Explanatory Notes also supported classification of polyvinyl pyrrolidone-iodine preparations put up for retail sale as medicaments.

Conclusion: The goods were correctly classifiable as medicaments under Chapter 30 and not under Heading 3402.90, and the assessee's classification was accepted.

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