Tariff classification of evening primrose oil capsules as fixed vegetable oil, not medicament, defeats duty, interest and penalty claims.

Primosa and Simrose capsules were treated as evening primrose oil, a fixed vegetable oil obtained from seeds and encapsulated without chemical modification, and were held classifiable under Heading 15159091 rather than as medicaments under Sub-heading 30049069. The presence of naturally occurring fatty acids did not change the essential character of the goods, and the chapter note excluding fatty acids was held inapplicable because it did not cover the natural oil in issue. Reliance on therapeutic or prophylactic attributes was found insufficient to alter tariff classification. On that basis, the duty demand, interest and penalty were stated to be unsustainable.

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Issues: Whether Primosa and Simrose capsules are classifiable under Heading 15159091 of the Central Excise Tariff Act, 1985 as fixed vegetable oils, or under Sub-heading 30049069 as medicaments, and whether the demand of duty, interest, and penalty could survive.

Analysis: The products were found to be evening primrose oil, a fixed oil obtained from seeds and encapsulated without chemical modification. The presence of naturally occurring fatty acids did not alter the essential character of the goods or convert them into medicaments. The chapter note excluding fatty acids was held inapplicable because it referred to goods of the excluded category and not to the natural oil in issue. The prior decision in the assessee's own case, as followed in later decisions, was treated as directly applicable, and the Revenue's reliance on therapeutic or prophylactic attributes was found insufficient to displace the tariff classification of the oil as such.

Conclusion: The products are classifiable under Heading 15159091 and not under Sub-heading 30049069. The duty demand, interest, and penalty were unsustainable.

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