Medicinal character controls tariff classification where bone-based tablets and syrup are processed for therapeutic and prophylactic use.

Bone powder processed into tablets or liquid suspension with additives for oral administration was found to bear the essential character of a medicinal preparation because its therapeutic and prophylactic purpose was to supply calcium and treat or prevent deficiency. On that basis, it could not be placed in Heading 3001.00, which excludes products having the character of medicaments, and it was also not appropriately treated as Chapter 2 goods in the form emerging from manufacture. Fresh classification by the original authority was required on the basis of its medicinal character.

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Issues: Whether the product manufactured from bone powder and marketed as tablets and syrup was classifiable under Chapter 2 or under Heading 3001.00 of the Central Excise Tariff, or whether it had the character of a medicament or medicinal preparation warranting fresh consideration.

Analysis: The product underwent a substantial manufacturing process in which the raw material was converted into tablets or liquid suspension and mixed with additives for oral administration. Its intended use was therapeutic and prophylactic, supplying calcium to the human body to treat or prevent deficiency. On those facts, the product displayed the essential character of a medicinal preparation. The exclusion in the HSN notes to Heading 30.01 for products having the character of medicaments, and the residuary wording of the heading, supported the view that the product could not be classified thereunder. The tariff material also indicated that the product was not appropriately treated as Chapter 2 goods in the form in which it emerged from manufacture.

Conclusion: The product was not classifiable under Chapter 2 or Heading 3001.00 and required de novo classification by the original authority on the basis that it possessed the essential character of a medicament or medicinal preparation.

Final Conclusion: The assessee obtained remand for fresh classification proceedings, with the product held to fall outside the classification adopted in the impugned order.

Ratio Decidendi: A product that, by reason of its manufacture, additives, and therapeutic or prophylactic intended use, bears the essential character of a medicament cannot be placed in a residuary heading that excludes medicaments and must be classified in accordance with its medicinal character.

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