Imported Goods Classification Appeal Dismissed and Order Sustained

The appeal was dismissed, and the impugned order was sustained, affirming the classification of the imported goods under Chapter 21 as determined by the Department.

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Issues Involved:
1. Classification of imported goods.
2. Determination of whether the goods are medicaments.
3. Applicability of Chapter 21 or Chapter 30 of the Customs Tariff Act, 1975.

Summary:

Classification of Imported Goods:
The appellant imported 270 Kg of 'Saccharomyces Boulardii' under the DEPB Scheme, initially classified under CTH 29183090 as 'Carboxylic acid.' The Department, upon post-clearance audit, reclassified the goods under CTH 21021090 as yeast, asserting that 'Saccharomyces Boulardii' is yeast and falls under Chapter 21. The original authority confirmed this classification and demanded differential duty, which was upheld by the Commissioner (Appeals).

Determination of Whether the Goods are Medicaments:
The appellant argued that 'Lyophilized Saccharomyces Boulardii' contains 13% lactose, making it a medicament under Chapter 3003 of CTA, 1975. The appellant presented medical literature and claimed the product is used for treating various diarrhoeal conditions, thus qualifying as a drug under the Drugs and Cosmetics Act, 1940. However, the authorities noted that the product is primarily yeast, with lactose added only as a stabilizing agent, not altering its essential nature as yeast.

Applicability of Chapter 21 or Chapter 30:
The Tribunal examined the relevant tariff headings and concluded that the goods do not merit classification under Chapter 29. Despite the appellant's contention that the product should be classified under Chapter 30 as a medicament, the Tribunal found no evidence that the product is recognized in the market as a medicament. The product was described by the supplier as "Ovoid yeasts to the exclusion of all other micro-organisms," and the safety data sheet indicated lactose was added merely for lyophilization.

The Tribunal referenced previous decisions, including Kasturi Foods & Chemicals and M/s. Zymonutrients Pvt. Ltd., which classified similar products under Chapter 21. The Tribunal upheld the Department's classification under CTH 21021090, concluding that the imported goods are yeast and not medicaments.

Conclusion:
The appeal was dismissed, and the impugned order was sustained, affirming the classification of the imported goods under Chapter 21 as determined by the Department.

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