Tribunal dismisses appeal on Tannic Acid classification under Customs Tariff. Appellants' exemption claim rejected.

The Tribunal dismissed the appeal in a case concerning the classification of Tannic Acid B.P. 1973 under the Customs Tariff. The appellants' claim for exemption under Notifications 77/86-Cus. and 31/88-C.E. was rejected as the goods were classified as a reagent in the British Pharmacopoeia, indicating they were not suitable for medicinal use. The Tribunal concluded that Tannic Acid did not qualify as a pharmaceutical chemical or bulk drug, leading to the dismissal of the appeal.

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Issues: Classification of Tannic Acid B.P. 1973 under Customs Tariff, eligibility for exemption under Notifications 77/86-Cus. and 31/88-C.E., and interpretation of British Pharmacopoeia entries.

In this case, the appellants appealed against the Collector of Customs (Appeals), Bombay's decision rejecting the classification of Tannic Acid B.P. 1973 under sub-heading 2942.00 of the Customs Tariff with the benefit of exemption under Notification 77/86-Cus., dated 17-2-1986 under Serial No. 5. The claim for exemption under Notification 31/88-C.E., dated 1-3-1988 as 'bulk drugs' was also rejected. The main contention was that since the goods were of pharmacopoeial grade, they should not fall under Chapter 32 of the Customs Tariff. The appellants provided a Certificate of Analysis and referred to Tariff Advice No. 51/79 to support their argument.

The appellants referred to Martindale's Pharmacopoeia and highlighted the entry for Tannic Acid, emphasizing its pharmaceutical uses. They also presented manufacturer literature and a remark by the Assistant Drugs Controller regarding the classification of the goods as a 'bulk drug - other category.' The respondent argued that Tannic Acid fell under Heading 32.01 of the Central Excise Tariff and HSN, emphasizing that it was not listed as a drug in the British Pharmacopoeia but as a reagent.

The Tribunal analyzed the submissions and the British Pharmacopoeia entries. They noted that the Pharmacopoeia specified that reagents listed were not necessarily suitable for medicinal use. The entry for Tannic Acid in the British Pharmacopoeia described it as a general reagent grade of commerce. Therefore, the Tribunal concluded that Tannic Acid, classified as a reagent in the Pharmacopoeia, was not suitable for medicinal use. Consequently, the appellants' claim for classification under Chapter 29 for exemption under Notifications 77/86-Cus. and 31/88-C.E. was rejected, as the goods did not qualify as pharmaceutical chemicals or bulk drugs. The appeal was dismissed.

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