1988 PLP 313 (CLC)

D. Other Free Free 30.04 Wadding, gauze, bandages and similar articles (for example, dressing, adhesive plasters, poultices), impregnated or coated with pharmaceutical substance or put up in retail packings for medical or surgical purposes, other than goods specified in Note 3 to this Chapter. A. Wadding, gauze and bandages impregnated or coated with pharmaceutical substances. 40% ad val. 12 % B. Other Free Free 01 Impregnated or coated with pharmaceutical substances. 40% ad val. 12 % 02 Other 40% ad val. 121%" It is not disputed that the Fucidin Leo Intertulle gauze is a drug' within the meaning of section 3 (g) of the Drugs Act XXXI of 1976 and is also registered as a drug under section 7 of the said Act, but the mere registration of substances, mixtures, powders, solutions, bandages, agents, devices as "drugs" under the Drugs Act, or any other substance which the Federal Government may by notification in the official Gazette declare to be "drug" for the purposes of that Act, does not mean that in the classification of "medicaments (including veterinary medicaments)" as given in heading 30.03 of the Pakistan Customs Tariff, all what comes under the definition of "drug" under the Drugs Act, 1976, will stand included. The classification of drugs for the purposes of the Pakistan Customs Tariff in totally different. In order to understand the classification of Medicaments (including veterinary medicaments)" as given in heading 30.03 of the Schedule, the Notes given in the heading to Chapter XXX, which deal with "Pharmaceutical products" is relevant: The said Notes read as follows: " Note s: (1) For the purposes of heading No.30.03, "medicaments" means goods (other than foods or beverages such as diatetic, diabetic or fortified foods, tonic beverages, spa water) not falling within Heading No.30.02 or 30.04 which are either: (a) Products comprising two or more constituents which have been mixed or compounded together for therapeutic or prophylactic uses; or (b) Unmixed products suitable for such uses put up in measured doses or in forms or in packings of a kind sold by retail for therapeutic or prophylactic purposes. For the purposes of these provisions and of Note 3 (d) to this Chapter, the following are to be treated: (A) As unmixed products: (1) Unmixed products dissolved in water; (2) All goods falling in Chapter 28 or 29; and (3) Simple vegetable extracts falling in Heading No.13.03, merely standardised or dissolved in any solvent; (B) As products which have been mixed: (1) Colloidal solutions and suspension (other than colloidal sulphur); (2) Vegetable extracts obtained by the treatment of mixtures of vegetable materials; and (3) Salts and concentrates obtained by evaporating natural mineral waters.

2. The headings of this Chapter are to be taken not to apply to: (a) Aqueous distillates and aqueous solutions of essential oils, suitable for medicinal uses (Heading No.33.06); (b) Dentifrices of all kinds, including those having therapeutic or prophylactic properties, which are to be considered as falling within heading No.33.06; or (c) Soap or other products of Heading No.34.01 containing added medicaments.

3. Heading No. 30.05 is to be taken to apply, and to apply only, to: (a) Sterile surgical catgut and similar sterile suture materials . (b). . . . . . . . . " Note No.l in the heading of Chapter XXX clearly states that for the purposes of Heading 30.03, "medicaments" means "goods ....not falling within Heading No.30.02 or 30.04 " Sub‑para. (1) of para. (A) under Heading 30.03 of the Explanatory Notes to the Nomenclature for the Classification of Goods clearly states that medical preparations covered by this heading include 'mixed or compounded medical preparations listed in the official pharmacopoeia, proprietary medicines, etc. , including those in the form of gargles, eye‑drops, ointments, linaments, injection, counter‑irritants and other preparations not falling within Heading 30.02 or 30.04." Heading 30.04 expressly covers gauze impregnated or coated with pharmaceutical substances. Thus in view of the Notes in the heading to Chapter XXX, gauze impregnated or coated with pharmaceutical substances, including anti‑biotic solutions, would be covered by classification given in Heading 30.04. The special overrides the general. The words "other than goods specified in Note 3 to this Chapter' do not refer to Heading 30.03, but Note 3 in the heading to Chapter XXX. In these circumstances, the stand taken by the department appears to be legal and correct and Fucidin Leo Intertulle is liable for the customs duty and the sales tax, under Heading 30.04 of Schedule 1 of the Customs Act, 1969.

7. It is submitted that since the Karachi Customs have been exempting the said drug from payment of duties under Heading 30.03, that the department should be compelled to give equal treatment to the petitioner. I am afraid I cannot accept this position. The Central Board of Revenue, vide its letter C.No. 78‑79/Cus‑Ex/6 (3)‑Pt.I, dated 18‑9‑1987, addressed to the Collector of Customs, Lahore, has already fixed the classification of the disputed drug under Heading 30.04 of the Pakistan Customs Tariff. The Karachi Customs will also be complying with the said directive in future. I cannot, therefore, accede to the request of the petitioner.

8. There being no merit in this petition, the same is dismissed. However, there shall be no order as to costs. A. A. /1‑46/L Petition dismissed.