Pharmacopoeia suffixes are interchangeable for drawback classification, preventing reclassification of Metformin HCL as "others".

Pharmacopoeia suffix differences cannot, by themselves, move exported Metformin HCL from the specific drawback entry to the residual "others" category. The drawback schedule under Notification No. 68/2011-Cus. (N.T.) was read with departmental circulars stating that tariff descriptions align with the Customs Tariff only up to the four-digit level and that suffixes such as IP, BP, EP, JP and USP are interchangeable. On that basis, the product remained eligible for drawback at 4% on FOB value, and restricting the claim to 1% was unsustainable. DGFT correspondence was also consistent with acceptance of the product for export benefit purposes.

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Issues: Whether Metformin HCL USP/PH EUR could be denied drawback at 4% on the footing that it fell under the residual entry for "others" and attracted only 1% drawback.

Analysis: The drawback schedule under Notification No. 68/2011-Cus. (N.T.) was read with the departmental circulars clarifying that tariff items and descriptions in the drawback schedule are aligned with the Customs Tariff only up to the four-digit level. The circulars also clarified that pharmacopoeia suffixes such as IP, BP, EP, JP and USP are interchangeable. On that basis, mere difference in the suffix used for the exported product could not justify reclassification of the goods as "others". The correspondence from DGFT also supported acceptance of Metformin HCL with different pharmacopoeia suffixes for export benefit purposes.

Conclusion: The goods were not liable to be reclassified as "others" merely because of the suffix used. The appellant was entitled to drawback at 4% on the FOB value, and the restriction of the claim to 1% was unsustainable.

Final Conclusion: The appeal succeeded and the appellant obtained the full drawback benefit claimed.

Ratio Decidendi: Where the drawback schedule is aligned with the Customs Tariff only up to the four-digit level, and the applicable circulars treat pharmacopoeia suffixes as interchangeable, a product cannot be shifted to the residual "others" entry merely because its suffix differs from the one mentioned in the schedule.

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