Medicament classification turns on tariff description and packing requirements; bulk liver extract for manufacturers falls outside Chapter 30.03.

An unmixed liver extract supplied in bulk to pharmaceutical manufacturers was held not to satisfy the Chapter 30 requirements for a medicament. Classification under Heading 30.03 and Sub-heading 3003.20 depended on therapeutic or prophylactic use and presentation in measured doses or in retail, hospital, or equivalent packings, which the product lacked. Labels showing manufacture-only supply and approval by the Drugs Controller did not alter tariff classification, which had to be determined from the heading and chapter notes. The product was therefore classifiable under Heading 30.01, the Department's view was upheld, and the assessee's cross-objections failed.

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Issues: Whether the product described as liver extract was classifiable under Heading 30.01 or under Sub-heading 3003.20 as a medicament.

Analysis: The product was found to be an unmixed preparation derived from ox liver and supplied in bulk to pharmaceutical manufacturers for use in making drugs. Under Chapter Note 2(i)(b) to Chapter 30, medicaments for Heading 30.03 are required to be for therapeutic or prophylactic use and to be put up in measured doses or in packings for retail sale or for use in hospitals. The labels showed that the product was meant for manufacturers only, and it was not cleared in retail packings or for hospital use. Approval by the Drugs Controller did not alter the tariff classification, because classification had to be determined from the tariff heading and chapter notes.

Conclusion: The product did not fall under Heading 30.03 or Sub-heading 3003.20 and was correctly classifiable under Heading 30.01. The classification in favour of the Department was upheld.

Final Conclusion: The appeals succeeded and the assessee's cross-objections failed, with the impugned product treated as falling outside the medicament entry.

Ratio Decidendi: For classification as a medicament under Chapter 30, the product must satisfy the tariff description and the relevant chapter note requirements, including therapeutic or prophylactic use and presentation in measured doses or suitable retail or hospital packing; bulk supply to manufacturers does not satisfy that test.

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