Pharmacopoeial chemical classification turns on predominant drug use, and extra non-medicinal uses do not defeat exemption.

Gallic Acid NF, being a pharmacopoeial product with therapeutic value as an astringent, was treated as a pharmaceutical chemical capable of classification under Heading 29.01/45(13) when used solely or predominantly as a drug. The presence of other non-medicinal uses in reference works did not, by itself, disqualify the goods from the tariff entry or from Notification No. 234/82-Cus., because classification turned on the nature and use of the imported pharmaceutical-grade product. The discussion also notes that Rule 3(a) applied as the more specific rule, supporting the classification approach adopted in preference to the contrary view.

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Issues: Whether Gallic Acid NF, being of pharmacopoeial grade, was classifiable as a pharmaceutical chemical having prophylactic or therapeutic value and used solely or predominantly as a drug under Heading 29.01/45(13), and consequently entitled to the benefit of Notification No. 234/82-Cus.; and whether the presence of other non-medicinal uses denied such classification.

Analysis: The goods imported were Gallic Acid NF conforming to pharmacopoeial standards and were shown to have therapeutic value as an astringent. The mere fact that the chemical also had other uses in the Merck Index and BTN Explanatory Notes did not by itself exclude it from the tariff entry or the exemption, since classification depended on the nature and use of the imported product in the relevant pharmaceutical grade. Where a chemical is a pharmaceutical chemical and is used solely or predominantly as a drug, its additional applications do not defeat the claimed classification. On the facts, Rule 3(a) applied as the more specific rule, and the contrary view taken in the impugned order was held unsustainable.

Conclusion: Gallic Acid NF was held classifiable under Heading 29.01/45(13) and eligible for the exemption under Notification No. 234/82-Cus.; the Revenue's contrary classification was set aside.

Final Conclusion: The appeal succeeded and the appellants obtained relief on classification and exemption.

Ratio Decidendi: A pharmacopoeial chemical with therapeutic value is not denied tariff classification or exemption merely because it may also have other uses, if it is used solely or predominantly as a drug.

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