Medicament classification for veterinary parasite treatment upheld over insecticide entry in tariff dispute.

Butox Liquid was treated as a medicament under sub-heading 3003.10 because Note 2 to Chapter 30 covers products comprising two or more constituents mixed or compounded for therapeutic or prophylactic use. The product was used to cure flies on bovines and sheep, scab mite, ticks and similar parasites affecting animals, so it fell within the medicinal classification rather than the insecticide entry under sub-heading 38.08. Applying the earlier classification principle for products used against parasites, the CEGAT held that the article answered the description of a medicament and not an insecticide, and the Revenue's appeal was allowed.

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Issues: Whether Butox Liquid manufactured by the respondents is classifiable as a medicament under sub-heading 3003.10 or as an insecticide under sub-heading 38.08.

Analysis: Note 2 to Chapter 30 of the Schedule to the Central Excise Tariff Act defines medicament as products comprising two or more constituents mixed or compounded together for therapeutic or prophylactic uses. The product was used for curing flies on bovines, sheeps, scab mite, ticks and similar insects infecting animals. Following the earlier classification principle applied to products used for treating parasites, the product answered the description of a medicament rather than an insecticide.

Conclusion: The product was held classifiable as a medicament under sub-heading 3003.10, and the Revenue's appeal was allowed.

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