Bharat Biotech Internal Ltd Vs Commissioner of Customs (CESTAT Bangalore)
In the case of Bharat Biotech International Pvt Ltd vs. Commissioner of Customs, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Bangalore addressed the classification of the imported product “Montanide ISA 206 VG.”
The adjuvants are to be classified as per the material composition in the respective Tariff heading. The appellant imports different “Adjuvants”, based on their composition, they are being classified, accordingly.
Bharat Biotech classified the product under CTH 38249090 as a chemical product not elsewhere specified, while the customs department argued it should be classified under CTH 30023000 as a “Vaccine for Veterinary Medicines.” The department alleged that the product was a vaccine based on its use in conjunction with vaccines to enhance immune responses. However, Bharat Biotech contended that “Montanide ISA 206 VG” is merely an adjuvant, not a vaccine, and thus cannot be classified as such. The Tribunal found that the product, an immunological adjuvant, does not meet the criteria for classification as a vaccine. It ruled that the department’s classification was incorrect and legally unsustainable, setting aside the demand and interest. The Tribunal also deleted the penalty imposed under Section 114A of the Customs Act, 1962, citing no evidence of misdeclaration or suppression of facts by Bharat Biotech. The appeal was allowed, and the order by the Commissioner (Appeals) was overturned.
