Classification of inactive dried yeast under Chapter 21 denied medicament exemption where product was sold as raw material.

Inactive dried yeast manufactured as a raw material was held classifiable under Chapter 21 rather than as a medicament under Heading 30.03. Chapter 21 includes active or inactive yeasts, and its exclusion for products put up as medicaments did not apply because the appellant did not present the product as a medicinal preparation. Its later therapeutic use by others did not change the character of the appellant's own product. The exemption claimed on the basis that the goods were medicaments therefore failed.

---

---

Issues: Whether pharma yeast or dried inactive yeast was classifiable under Heading 30.03 as a medicament, or whether it fell under Heading 21.02 of Chapter 21 and was therefore outside the exemption claimed under Notification No. 234/86-C.E.

Analysis: Chapter 21 covers yeasts, active or inactive, but its Note 1 excludes yeast put up as a medicament or other products of Chapter 30. The product manufactured by the appellant was found to be inactive dried yeast sold as a raw material for further manufacture, and not put up by the appellant as a medicament. The fact that the product had therapeutic utility, or that it was later used by others to make medicinal tablets, did not convert the appellant's own product into a medicament. The material did not satisfy the basis for classification under Heading 30.03, and the exclusion in Chapter 21 was not attracted on the facts.

Conclusion: The product was correctly classifiable under Chapter 21 and not under Heading 30.03; the claim for exemption on the footing that it was a medicament failed.

---