1999 (4) TMI 315 - AT - Central Excise

Tribunal rules against concessional duty on homoeopathic medicines, citing misclassification and non-compliance.

The Tribunal upheld the classification of the imported goods under Chapter 17 instead of Chapter 30, ruling out the applicability of Notification No. ... Classification Issues: Classification of imported goods under Chapter 17 or Chapter 30, entitlement to the benefit of Notification No. 58/85, applicability of Notification No. 50/91.Classification Issue:The impugned order addressed the classification of imported goods, specifically 'sugar of milk,' under Chapter 17 or Chapter 30. The Commissioner (A) noted that the goods were classified under Heading 17.02 as lactose HPL, a medium for dispensing homoeopathic medicine, rather than as homoeopathic medicine under Heading 30.04. The appellant claimed the benefit of Notification No. 58/85 for concessional duty on homoeopathic medicines. The Commissioner (A) held that the goods were correctly classified under Chapter 17.02 due to their specific description, as per Interpretive Rule 3(a.Benefit of Notification No. 58/85:The appellants argued for the benefit of Notification No. 58/85, which provided concessional duty on homoeopathic medicines under Chapter 30.03 or 30.04. The goods were initially assessed under Heading 30.04 as homoeopathic medicine, but examination revealed them to be lactose conforming to Homoeopathic Pharmacopia of India (HPI) specifications. The department contended that since the goods were lactose, they fell under Heading 17.02 and were not eligible for the Notification's benefit. The appellant sought to extend the benefit by arguing that the goods were homoeopathic medicine in retail packing.Applicability of Notification No. 50/91:The appellants also claimed the benefit of Notification No. 50/91, which applied to lactose conforming to HPI specifications under sub-heading 1702.10. However, the authorities rejected this claim, stating that the conditions for the notification were not met. The appellants submitted additional evidence, including certificates and affidavits, to support their claim, but the Tribunal found that these documents did not establish compliance with the notification's conditions.Conclusion:The Tribunal upheld the authorities' classification of the goods under Chapter 17. It determined that the benefit of Notification No. 58/85 was not applicable as the goods were classified under Chapter 17, not Chapter 30. Additionally, the benefit of Notification No. 50/91 was denied due to non-compliance with its conditions. The Tribunal rejected the appeal based on these findings and disposed of the miscellaneous application accordingly.