Marketability of crude intermediate upheld where chemically defined compound with impurities remained dutiable under the tariff

Crude Diamino Benzophenone, used as an intermediate in manufacturing Mebendazole, was treated as marketable and dutiable because it shared the same chemical formula and molecular structure as the saleable product and was shown to be capable of being marketed. Chapter Note 1(a) to Chapter 29 of the Central Excise Tariff Act, 1985 covers separate chemically defined organic compounds even if they contain impurities. On that basis, the argument that the unpurified intermediate was outside duty was rejected, and the tariff heading was applied to the crude intermediate under sub-heading 2913.00.

---

---

Issues: Whether crude Diamino Benzophenone arising as an intermediate product in the manufacture of Mebendazole was marketable and dutiable under the tariff classification adopted by the Department.

Analysis: The intermediate product and the saleable product were found to have the same chemical formula and molecular structure, and the evidence showed that crude DABP was capable of being marketed. Chapter Note 1(a) to Chapter 29 of the Central Excise Tariff Act, 1985 expressly covers separate chemically defined organic compounds whether or not containing impurities. On that basis, the contention that the unpurified form was not dutiable was rejected, and the tariff heading was held applicable.

Conclusion: The intermediate crude DABP was held dutiable and correctly classifiable under sub-heading 2913.00, against the assessee.

---