Tariff classification of penicillin derivatives upheld where evidence showed oral-use covered product under the relevant entry.

Becampicillin Hydrochloride was treated as classifiable under sub-heading 3003.11 because the tariff entry was read to include penicillin in pure form, its salts and derivatives intended for oral or parenteral use. On the evidence, including chemical analysis and medical literature, the product was found to be a penicillin derivative for oral administration, so the departmental exclusion was rejected. Classification was therefore accepted under the cited entry, and the dispute was resolved in favour of the assessee.

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Issues: Whether Becampicillin Hydrochloride was classifiable under sub-heading 3003.11 as penicillin in pure form, its salts or derivatives intended for oral or parenteral use.

Analysis: The classification entry under sub-heading 3003.11 was held to be wide enough to cover penicillin in pure form as well as its salts and derivatives intended for oral or parenteral use. The material before the Tribunal, including the chemical report and the medical literature produced, described Becampicillin Hydrochloride as a penicillin derivative used for oral administration. The departmental view that it was outside the entry was not accepted in light of this evidence.

Conclusion: Becampicillin Hydrochloride was held to merit classification under sub-heading 3003.11.

Final Conclusion: The classification dispute was resolved in favour of the assessee and the impugned order was set aside.

Ratio Decidendi: Where a tariff entry expressly includes a drug in pure form, its salts and its derivatives, the product is classifiable within that entry if the evidence shows it to be a covered derivative intended for the specified use.

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