Tariff classification of anhydrous dextrose followed binding precedent, overriding the department's contrary heading under excise law.

Anhydrous dextrose was examined for tariff classification under sub-heading 1702.21 of the Central Excise Tariff or as an organic chemical/drug intermediate under Chapter 29. The product was claimed to meet pharmacopoeial standards and to fall within the scope of an earlier High Court ruling classifying anhydrous dextrose under Chapter 29 of the Customs Tariff. The Tribunal noted that the prior High Court decision directly covered the facts and, in the absence of any contrary High Court or Supreme Court ruling, judicial discipline required following that precedent. The classification under sub-heading 1702.21 was therefore rejected and the impugned order was set aside.

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Issues: Whether anhydrous dextrose was correctly classifiable under sub-heading 1702.21 of the Central Excise Tariff or under Chapter 29 as an organic chemical/drug intermediate.

Analysis: The product was claimed to be an organic compound used as a drug and drug intermediate, supported by material suggesting conformity with pharmacopoeial standards and reliance on a prior High Court ruling classifying anhydrous dextrose under Chapter 29 of the Customs Tariff. The department relied on the specific entry under Chapter 17 and on the interpretative rule that the more specific description should prevail. The Tribunal found that the High Court decision directly covered the facts, and in the absence of any contrary High Court or Supreme Court decision, judicial discipline required following that precedent.

Conclusion: The product was not to be classified under sub-heading 1702.21 and the appeal was allowed by setting aside the impugned classification order.

Ratio Decidendi: Where a binding High Court decision directly governs the classification of a product and no contrary superior precedent exists, the Tribunal must follow that decision in preference to the department's contrary classification view.

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