1997 (4) TMI 165 - AT - Central Excise

Phenyle classified as disinfectant, not medicament, by appellate tribunal. Upheld decision consistent with precedent.

The appellate tribunal upheld the classification of phenyle as a disinfectant, not a medicament, based on its function and ingredients. The decision was ... Classification as disinfectant - medicament / medicine - definition of drug and medicine - disinfectant wider than pesticide - precedent of tribunal and supreme court on classificationClassification as disinfectant - medicament / medicine - definition of drug and medicine - precedent of tribunal and supreme court on classification - Phenyle is classifiable as a disinfectant and not as a medicament/medicine. - HELD THAT: - The Tribunal accepted the Collector (Appeals)'s finding that the product's function, use and description, together with its composition (phenols and cresols), point to classification as a disinfectant rather than a medicament. The appellants produced no evidence to substantiate the claim that the product is a medicament. The Collector (Appeals) correctly applied the definitions that a drug relates to manufacture of medicine and that a medicine is used for treatment or prevention of disease, which the product did not satisfy on the material before the authorities. The decision is further supported by the Tribunal's earlier rulings (including Ambey Laboratories and Bengal Chemicals) holding liquid phenyle to be a disinfectant, and by the Supreme Court's explanation that a disinfectant is used for destroying germs and is a term wider than pesticide. In view of these precedents and the absence of contrary material from the appellants, there is no infirmity in upholding classification as a disinfectant.Appeals dismissed and classification as disinfectant under the applicable tariff upheld.Final Conclusion: On the facts and settled precedents, phenyle is held to be a disinfectant and not a medicament; the appeals are rejected. The appellate tribunal upheld the classification of phenyle as a disinfectant, not a medicament, based on its function and ingredients. The decision was consistent with previous tribunal rulings and a Supreme Court explanation of disinfectants. The appeals were rejected. (M/s. Rosin and Terpentine Factory v. Collector of Central Excise) [1997 (4) TMI 165 - CEGAT, NEW DELHI]