wadding falling under 3005 of Central Excise tariff whether MRP or Sec. 4 valuation

[Hariharan Sundaram]

Dear experts, pl clarify whether wadding falling under Chapter 3005 of Central Excise Tariff is to be assessed under Section 4A (MRP assessment) or under Section 4, if cleared under unit packing and not under bulk packing to retail outlets?

[Rajagopalan Ranganathan]

Sir,

Wadding falling under Chapter 3005 of Central Excise Tariff is to be assessed under Section 4A (MRP assessment) since all goods mentioned under Chapter 30 of the first schedule of Central Excise Tariff Act, 1985 are included against Sl. No.30 of Notification No. 49/2008-CE (n.T.) dated 24.12.2008 as amended which prescribes rates of abatement for goods to be assessed under Section 4A of Central Excise Act, 1944.

[Hariharan Sundaram]

sir, thank you very much for your prompt reply. My doubt is Sl. No. 30 of the Notification 49/2008 CE (NT) specifies only medicaments and it does not specify "All goods" of chapter 30. Under these circumstances. Moreover, the Chapter 30 of CETA is about Pharmaceutical products . However the above Sl. No. 30 of the Notification speaks about medicaments. Whether wadding can be classsified as "medicaments" to qualify for MRP valuation? Sir, Kindly let me know whether medicaments and pharmaceutical products are one and the same? In the absence of words " All goods" at Sl. No. 30, how I could convince the departmental authorities? Kindly specify whether any board circular or case law in favour of the MRP valuation of the goods "wadding"?

[Rajagopalan Ranganathan]

Sir,

Heading 3005 indicates that it includes wadding, gauze, bandages and similar articles impregnated or coated with pharmaceutical substances. If they are not so then they will not fall under heading 3005.

AI Summary

MRP assessment applies to wadding classified as pharmaceutical article when impregnated with pharmaceutical substances for valuation. MRP assessment applies when wadding is classed within the pharmaceutical tariff heading covered by the notification prescribing abatement; specifically, wadding, gauze or bandages impregnated or coated with pharmaceutical substances fall within that heading and may be valued under the MRP-based notification, whereas non impregnated wadding does not fall within the pharmaceutical heading and should be assessed under ordinary valuation rules.