Tribunal allows title change & upholds PP Medicine classification. Appellants directed to pre-deposit Rs. 2 lakhs.

The Tribunal allowed the appellants' miscellaneous petition to change the cause title and upheld the classification of their product as PP Medicine under Tariff Heading 3003.10 based on a report by the Chemical Examiner. The appellants were directed to make a pre-deposit of Rs. 2 lakhs considering their financial difficulties, even though their case was referred to the BIFR and they showed significant losses in their financial statements. Compliance with the deposit was required by a specified date for further actions to proceed.

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Issues:
Change of cause title in a miscellaneous petition.
Classification of a product under Central Excise Tariff.
Financial position of the appellants.

Change of Cause Title:
The appellants filed a miscellaneous petition to change the cause title from one company to another, supported by an affidavit and a Fresh Certificate of Incorporation. The Tribunal allowed the petition based on the evidence presented.

Classification of Product:
The appellants classified their product as an Ayurvedic medicine under Chapter Heading 3003.39. The Departmental authorities made a provisional assessment and later classified the product under Tariff Heading 3003.10 as PP Medicine. This classification was based on a report by the Chemical Examiner, which identified active ingredients and an excipient in the product. The Tribunal noted the findings of the report and upheld the classification, stating that the appellants did not establish a prima-facie case in their favor. The financial position of the appellants was also considered, with the Tribunal directing a pre-deposit of Rs. 2 lakhs as part of the duty amount confirmed.

Financial Position of Appellants:
The financial position of the appellants was taken into account, with their case being referred to the Board for Industrial and Financial Reconstruction (BIFR). The Tribunal observed that the appellants' matter with the BIFR was still at the enquiry stage and their financial situation was not favorable, as evidenced by a significant loss reflected in their profit and loss account. Despite the financial challenges, the Tribunal directed the appellants to make a pre-deposit of Rs. 2 lakhs, considering the total income and depreciation figures provided. Compliance was required by a specified date, with further actions contingent on the deposit.

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