The main legal principle established in the judgment is that the classification of products under the Central Excise Tariff Act should be based on the specific characteristics and functions of the products, and the width of the Heading under CETA cannot be expanded by reading notes or relying on common parlance.

JUDGMENT

Kapadia, J.

From the impugned judgment dated 1.1.2002 delivered by the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT, for short), New Delhi, vide Appeal No.E/1644 and 1645 of 2000-C, C.A. No.5322 of 2002 and C.A. No.1953-54 of 2003 have been iled by the assessees and by the Department respectively. For the sake of convenience and clarity we proceed to decide each of the following civil appeals serially.

C.A.No.5322/2002 filed by M/s. J. Mitra & Co.Ltd. (Assessee) In this civil appeal we are concerned with the classification of biotech products.

The said assessee was engaged in the manufacture of blood-grouping reagents and diagnostic and laboratory reagents. It had obtained registration on 10.9.99 for the manufacture and clearances of the following products:

(1)Anti-A Mono Clonal

(2)Anti-B Mono Clonal

(3)Anti-Decoders Mono Clonal

(4)Anti-Decoders Mono Clonal

(5)Anti-Decoders 1gM Mono Clonal

(6)Anti-Decoders 1gG Mono Clonal

The above six items are called Monoclonal Antibodies (for short, MABs). They were classified by the assessee under Chapter Sub-heading 3002.00 (Chapter Heading 30.02) of Central Excise Tariff Act (for short, CETA) whereas the Department classified the MABs under CSH 3005.90 (Chapter Heading 30.05) of CETA.

The assessee classified MABs as "cultures of micro-organisms" whereas the Department classified the said MABs as "pharmaceutical products, not elsewhere specified or included".

The CEGAT (Tribunal), vide the impugned judgment, upheld the classification of MABs under CSH 3005.90 of CETA as claimed by the Department, hence this civil appeal is filed by the assessee.

For the sake of convenience, we quote hereinbelow Chapter Note 3 in Chapter 30 of the CETA concerning pharmaceutical products which reads as under:

"CHAPTER 30

PHARMACEUTICAL PRODUCTS

Notes :

1. and

2. xxxxxxxxx

3. Heading No.30.05 applies only to the following, which are to be classified in that heading and in no other heading of this Schedule:-

(a) to (d) xxxxxxxxx

(e) Blood grouping reagents;

(f) to (h)xxxxxxxxx"

We quote hereinbelow Chapter Heading 30.02 and CSH 3002.00 of CETA which read as under:

"CHAPTER 30

PHARMACEUTICAL PRODUCTS

Notes : 1. to 5. xxxxxxxxx

Heading Sub-heading Description of goodsRate of

No.No.duty

(1)(2)(3)(4)

30.023002.00Antisera and other blood

fractions; Vaccines, Toxins,

Cultures of micro-organisms

(including ferments but

excluding yeasts) and similar

products

We quote hereinbelow Chapter Heading 30.05 in entirety of CETA which reads as under:

"CHAPTER 30

PHARMACEUTICAL PRODUCTS

Notes : 1. to 5. xxxxxxxxx

Heading Sub-heading Description of goodsRate of

No.No.duty

(1)(2)(3)(4)

30.05Pharmaceutical goods, not

elsewhere specified

3005.10Chemical contraceptivesNil

3005.20Dental cements and other dental 15%

fillings

3005.90Others15%

We also quote hereinbelow relevant extracts of Chapter Note No.2 in Chapter 30 of HSN (Second Edition) which read as follows:

"CHAPTER 30

PHARMACEUTICAL PRODUCTS

Chapter Notes.

1.xxxxxxxxx

2. For the purposes of heading No.30.02, the expression "modified immunological products" applies only to monoclonal antibodies (MABs), antibody fragments, antibody conjugates and antibody fragment conjugates."

We also quote hereinbelow Chapter Heading 30.02 in entirety from the said HSN which reads as under:

"30.02 HUMAN BLOOD; ANIMAL BLOOD PREPARED FOR THERAPEUTIC, PROPHYLACTIC OR DIAGNOSTIC USES; ANTISERA AND OTHER BLOOD FRCTIONS AND MODIFIED IMUNOLOGICAL PRODUCTS, WHETHER OR NOT OBTAINED BY MEANS OF BIOTECHNOLOGICAL PROCESSES; VACCINES, TOXINS, CULTURES OF MICRO-ORGANISMS (EXCLUDING YEASTS) AND SIMILAR PRODUCTS.

3002.10 Antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes

3002.20 Vaccines for human medicine

3002.30 Vaccines for veterinary medicine

3002.90 Other

This heading covers:

(A) Human blood (e.g., human blood in sealed ampoules).

(B) Animal blood prepared for therapeutic, prophylactic or diagnostic uses

Animal blood not prepared for suc