SURGICHEM Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE issue involved in these appeals is the correct classification under the old Central Excise Tariff of adhesive plaster described as Porofix Adhesive Plaster BPC/USP, plaster of paris bandages, Johnson plast adhesive type USP (all sizes) and economy pack etc. The matter has come before this Larger Bench upon reference by Division Benches vide Misc. Orders No. 86 to 91/91 -C dated 5/2/91 and misc. order No.161/99. The reference is in view of the conflict between two decisions of the Tribunal, i.e., in the case of J.L. Morison, Son & Jones (India) Ltd. Bombay v. Collector of Central Excise, Bombay reported in 1984 (15) E.L.T. 251 (T) and in the case of Collector of Central Excise, Rajkot v. Surgichem reported in 1987 (27) E.L.T. 548 (T). The first decision held that zinc Oxide adhesive plasters B.P.C. are classifiable under tariff item 14E while the second decision held that adhesive plaster B.P.C. tapes are classifiable under tariff item 68 of Central Excise Tariff and not under tariff items 14E or tariff item 60 of the said tariff. The relevant tariff headings may be reproduced below for ease of reference : -

(2.) THE products in question are surgical dressings and are used for protecting and keeping secure affected parts and immobilising affected areas. These are manufactured under drugs licence and according to specifications under British and American pharmacopoeia. The counsel for the appellants has submitted during hearing that it is clear from the specifications indicated in the pharmacopoeia that these items, though manufactured according to the specifications laid down in pharmacopoeia, they have no therapeutic or curative properties. The curing takes place of its own. The body cures itself by its natural healing abilities. The plaster only protects the affected area or immobilises the affected part of the body so that the broken bones are kept in their proper place/alignment so that they heal in course of time. The bandages do not take part in healing as such. The learned Counsel referred us in particular to British Pharmaceutical Codex 1968 Page 977 in regard to 'Surgical Dressings' which is reproduced below : -

(3.) THE learned counsel pointed out that it is clear from these texts that various surgical bandages are not prepared for any therapeutic purpose. Therefore, they cannot be treated as medicines. They are only drugs/pharmaceutical products of non -therapeutic quality. Their antiseptic or astringent properties do not make them medicines.