TaxTMI 
TaxTMI 
2003 (6) TMI 258
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....cts have identical composition, the only difference being that Wokadine is a branded product, whereas the other is generic. The composition of these products per 1000 litres is as follows : (i) Povidone Iodine IP - 80.21 kg (ii) neutromix S-60 and anomic detergent (active content 58%) - 250 kilogram (iii) superamide L-9 (foaming agent) - 12 kilogram (iv) sodium hydroxide (preservative) - 1.46 kilogram (v) demineralised water - balance 2. The label indicates that the product contains povidone iodine 7.5% w/v. The appellant claimed classification of these products as medicaments in Chapter 30.03 of the Centr....
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....ts contained far greater quantities of detergent, three times as much as the povidone iodine, leading to the view that it is used more as a cleansing agent to remove dirt, fungus etc. than for its microbicidal properties. The fact that the appellant manufactures and sells povidone iodine solution which does not contain detergent or stabiliser underlines the importance of the presence of the detergent. The directions for the use of the product provided that surgical scrub, which is applied to the patient's skin has to be rinsed off and thereafter, the skin painted with solution of povidone iodine not containing surface active agent. The fact that they are being washed off and the requirement of the use of the povidone iodine solution clearly....
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....ine. However, when the hands are contaminated by gram-negative bacteria, povidone iodine is a more effective scrubbing disinfectant than is aqueous chlorhexidine." It refers to branded preparations (Prepodyne, Septodyne) available as a cleansing solution (scrub) containing 0.75% of available iodine, a solution containing 1% available iodine and other forms. The Japan Medical Products International Trade Association, is cited to say that surgical scrub solution containing 100 mg povidone iodine (10 mg as available iodine) foaming agent and surfactant is used for disinfection of the skin of the operating site. The United States Pharmacopoeia and the Indian Pharmacopoeia are cited to say that povidone iodine is used as an antiseptic. The Extra....
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....es not dispute that the povidone solution (as distinct from the scrub) is clearly prophylactic. This in fact is the main point of his argument. It would therefore follow that, without the presence of the surface active agent and stabiliser, the scrub that we are concerned with would also be classifiable as a pharmaceutical product in Heading 30.03. It is confirmed by the Counsel for the appellant that the 5% solution of povidone iodine is in fact so classified. In that event, accepting the departmental representation's contention would result in a situation in which povidone iodine, which is otherwise a pharmaceutical product will cease to be so only because some surface active product had been added to it. 7. Given these facts, it ....
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....oaps and such products would be. The labels on them clearly show their use for preoperative use by the surgeon and his team or on the patient, and do not suggest any use other than these. 8. Note 1(e) to Chapter 30 of the tariff excludes from its scope soap or other products of Chapter 34 containing added medicament. We do not see how the presence of the note helps the department's case. It only explains that the goods which are clearly identifiable as soap or products of Chapter 34 do not cease to be so classified because they contain added medicament. In other words, if the primary use of the product is as soap or other product of Chapter 34, the presence of medicament in it will not bring it into the scope of Chapter 30. For it t....
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.... applied is whether it is primarily for therapeutic and prophylactic qualities of the products that it purchased or its qualities as such organic surface active product or preparations. It is also to be noted that at the same page of the Explanatory Notes, polyvinyl pyrrolidone-iodine, which is the full name of the product that we are concerned with here, povidone iodine, is also stated to be covered, provided it satisfies the condition of being put up to measured doses or packing for retail sale. 9. The judgments that the Departmental Representative cites are not of any assistance. In Shree Baidyanath Ayurvedic Bhavan Ltd v. C.C.E. - 1996 (83) E.L.T. 492 (S.C.), the Supreme Court held that Dant Manjan Lal could not be classified as....