Medicament classification for antiseptic product upheld where therapeutic and prophylactic use and active ingredients supported Chapter 30 treatment.

Savlon antiseptic was used for cleaning wounds, abrasions and minor cuts and for disinfecting skin before surgery, and the product's composition included pharmaceutically active ingredients such as chlorhexidine gluconate and cetrimide. Applying the Supreme Court principle that products with therapeutic and prophylactic use fall under medicament classification, the product was held classifiable under Chapter Heading 30.03 and not under Chapter Heading 38.08 as a disinfectant. The demand and penalty were set aside and the appeal was allowed.

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Issues: Whether the product Savlon antiseptic was correctly classifiable as a disinfectant under Chapter Heading 38.08 of the Central Excise Tariff Act, 1985 or as a medicament under Chapter Heading 30.03 of the Central Excise Tariff Act, 1985.

Analysis: The product was used for cleaning wounds, abrasions and minor cuts and for disinfecting the skin prior to surgery. The cited Supreme Court ruling held that products with therapeutic properties and prophylactic use are classifiable under CET sub-heading 3003.10 and not under Chapter Heading 38.08. The Chemical Examiner found that Savlon answered the text for chlorhexidine gluconate and cetrimide, both pharmaceutically active ingredients. On that basis, the facts were held to be fully covered by the earlier ruling.

Conclusion: The product was held classifiable under Chapter Heading 30.03 as a medicament and not under Chapter Heading 38.08 as a disinfectant; the demand and penalty were set aside and the appeal was allowed.

Ratio Decidendi: A product having therapeutic properties and prophylactic use, supported by pharmaceutically active ingredients, is classifiable as a medicament under Chapter Heading 30.03 rather than as a disinfectant under Chapter Heading 38.08.

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