Tariff classification of phenol as a disinfectant, not a medicament, under excise law

Phenol was examined for classification under the Central Excise Tariff, with the dispute turning on whether it qualified as a medicament under Chapter 30 or a disinfectant under Chapter 38. The analysis rejected reliance on section 3(b) of the Drugs & Cosmetics Act and Chapter 30 Note 2(i)(a), because the product's function was limited to sanitation and destruction of pathogenic agents on inanimate objects. It did not prevent disease in human beings or animals and therefore did not satisfy prophylactic use for Chapter 30. Chapter 38, which covers disinfectants and similar products, was treated as the proper tariff heading.

---

---

Issues: Whether phenol manufactured by the assessee was classifiable as a medicament under Heading 3003.20 of the Central Excise Tariff Act, 1985 or as a disinfectant under Heading 3801.90 of the Central Excise Tariff Act, 1985.

Analysis: Section 3(b) of the Drugs & Cosmetics Act, 1940 was relied upon to contend that the product was a drug, and Note 2(i)(a) of Chapter 30 of the Central Excise Tariff Act, 1985 was invoked to claim medicament status on the basis of mixed constituents and alleged prophylactic use. The product, however, was found to be a disinfectant whose function was limited to sanitation and destruction of pathogenic agents on inanimate objects. It was held not to prevent disease in human beings or animals and therefore not to satisfy the concept of prophylactic use for Chapter 30. Chapter 38 expressly covered disinfectants and similar products, and the residuary entry 3801.90 was held to cover disinfectants of all kinds.

Conclusion: Phenol was not a medicament under Chapter 30 and was correctly classifiable as a disinfectant under Chapter 38, against the assessee.

---