The Customs Excise & Service Tax Appellate Tribunal (CESTAT) New Delhi, on Tuesday, ordered Sodium di-chloroisocynurate tablets ( SDIC Tablets ), commonly known as SDIC tablets be classified as ‘disinfectants’ under the Central Excise Tariff Headings (CETH) 38089400.
The Respondents, Harshavardhan Laboratories Pvt. Ltd. Is engaged in the manufacture of veterinary feed additives, mineral food supplements, water purifying talets, etc. The dispute arose when the assesse claimed classification under CETH 29336910.
The Revenue Department, who went for appeal claimed that the goods manufactured by the respondents are used for sanitizing of water and hence, are in form of disinfectant. Further, they claimed that these tablets were packed in unit containers and undoubtedly, such packaging is meant for retail sale and individual tablets are in measured doses.
The Tribunal bench comprising of President Justice Dr. Satish Chandra and Technical Member V. Padmanabhan were of the opinion that the goods are manufactured and packed for retail sale and hence held that these SDIC tablets are liable to duty in terms of MRP based assessment under section 4A
“The goods manufactured by the assessee are cleared under several brand names. The nature of the goods has been confirmed by the Revenue during investigation. Such goods are used for disinfectanting/ sanitizing of water and hence, are in the form of disinfectants. There is also no dispute on the fact that such goods are prepared in the form of tablets and are packed in unit containers with 10, 20, 50 and 100 tablets. Undoubtedly, such packaging is meant for retail sale and individual tablets are in measured doses. Section Note 2 to Section VI is relevant for classification of the impugned goods,” the bench said.
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