Diagnostic immunodiffusion plates treated as a drug for tariff classification, securing exemption and defeating residuary treatment.

Tripartigen Plates were treated as a diagnostic immunodiffusion product and, for tariff purposes, satisfied the statutory concept of a "drug" by reference to section 3(b) of the Drugs and Cosmetics Act, 1940. Because the plates were used to diagnose and determine immunoglobulins, they fell within Tariff Item 14E as patent or proprietary medicine and could not be relegated to the residuary Tariff Item 68. The existing departmental classification was therefore sustained, and the exemption benefit followed from that classification; reclassification and denial of exemption were unsustainable.

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Issues: Whether Tripartigen Plates were classifiable under Tariff Item 14E as a drug or patent or proprietary medicine, or under Tariff Item 68, and whether the benefit of the exemption notification was available.

Analysis: Tariff Item 14E covered patent or proprietary medicines, which required the product to be a drug or medicinal preparation. The expression "drug" was applied with reference to Section 3(b) of the Drugs and Cosmetics Act, 1940, under which drugs include substances intended to be used in diagnosis, treatment, mitigation or prevention of disease. The product was found to be an immunodiffusion plate used as a diagnostic tool for determining immunoglobins. On that basis, it fell within the statutory concept of a drug and could not be treated as a mere item under Tariff Item 68. The classification originally approved by the Department therefore remained justified, and the denial of exemption could not stand.

Conclusion: Tripartigen Plates were correctly classifiable under Tariff Item 14E and the assessee was entitled to the exemption benefit; the reclassification under Tariff Item 68 was unsustainable.

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