Pharmaceutical classification supported customs exemption for imported Thymol B.P. Grade, making predominant use irrelevant on the facts.

Thymol B.P. Grade imported as pharmaceutical chemicals was treated as covered by the exemption in Central Excise Notification No. 55/75 for drugs, medicines, pharmaceuticals and drug intermediates. The classification adopted for basic customs duty under Heading 29.01/45(13) was taken as sufficient to show that the goods were pharmaceuticals for exemption purposes, and the main or predominant use test was considered irrelevant on those facts. The appeal was allowed, and exemption from additional countervailing customs duty was granted.

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Issues: Whether Thymol B.P. Grade imported by the appellants was entitled to exemption from additional countervailing customs duty under Central Excise Notification No. 55/75.

Analysis: The goods had been classified under Heading No. 29.01/45(13) of the First Schedule to the Customs Tariff Act, 1975 as pharmaceutical chemicals, namely chemicals having prophylactic or therapeutic value and used solely or predominantly as drugs. On that footing, the description in Notification No. 55/75 covering drugs, medicines, pharmaceuticals and drug intermediates was held to apply. The classification adopted for basic customs duty was treated as showing that the goods were pharmaceuticals for the purposes of the exemption, and the question of main or predominant use was held to be irrelevant in the circumstances.

Conclusion: The appeal was allowed and the appellants were held entitled to exemption from the additional customs duty.

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