Ayurvedic medicament classification turns on medicinal character and held-out use, not pleasant odour or occasional hair application.

A formulation containing Ayurvedic ingredients and manufactured under an Ayurvedic drug licence was treated as an Ayurvedic medicament under Heading 3003.30, because the tariff scheme and exemption notifications covered both classical and patent or proprietary Ayurvedic medicines; the product was not excluded merely for not following a textbook formula. It was also held outside Chapter 33, since its label and literature indicated medicinal use on the scalp and affected parts rather than cosmetic or toilet use, and a pleasant odour from natural ingredients did not make it a perfumed hair oil. The product therefore remained classifiable as an Ayurvedic medicament.

---

---

Issues: (i) whether Himtaj Tel was classifiable as an Ayurvedic medicament under Heading 3003.30 of the Central Excise Tariff Act, 1985 or as a perfumed hair oil under Sub-heading 3305.10; (ii) whether the product fell within Chapter 33 as a cosmetic or toilet preparation in view of its packing, label, use directions, and pleasant odour.

Issue (i): whether Himtaj Tel was classifiable as an Ayurvedic medicament under Heading 3003.30 of the Central Excise Tariff Act, 1985 or as a perfumed hair oil under Sub-heading 3305.10.

Analysis: The product was found to contain ingredients mentioned in authoritative Ayurvedic texts and to be manufactured under an Ayurvedic drug licence. The tariff scheme and the exemption notifications showed that Ayurvedic medicaments included both classical medicines and patent or proprietary Ayurvedic medicines, and that the distinction introduced by Notification No. 75/94-C.E. did not exclude such proprietary formulations from the medicament entry. The Court also relied on the Chief Chemist's report, clinical material, and common parlance understanding, and rejected the view that manufacture strictly in accordance with a textbook formula was essential.

Conclusion: Himtaj Tel was held to be an Ayurvedic medicament under Heading 3003.30 and not a perfumed hair oil.

Issue (ii): whether the product fell within Chapter 33 as a cosmetic or toilet preparation in view of its packing, label, use directions, and pleasant odour.

Analysis: Chapter Notes 2 and 6 of Chapter 33 require that goods of Heading 33.05 be put up as products for use as cosmetics or toilet preparations and indicate use on the hair. The label and literature referred to medicinal use on the scalp and affected parts for headache and other ailments, not to beautifying or cosmetic use. The report also showed no synthetic perfumery chemical, and a pleasant odour arising from natural ingredients was insufficient to make the product a perfumed hair oil. The reasoning in the earlier decisions on medicaments versus cosmetics was applied to the facts of the product.

Conclusion: The product was not classifiable under Chapter 33 as a cosmetic or toilet preparation.

Final Conclusion: The classification adopted against the appellant was not sustained, and the product was held to remain within the Ayurvedic medicament entry, with the matter sent back for further proceedings in accordance with that finding.

Ratio Decidendi: A formulation containing Ayurvedic ingredients and understood in common parlance as medicinal does not become a perfumed hair oil or cosmetic merely because it has a pleasant odour or is capable of occasional hair use; the decisive test is its true medicinal character and the manner in which it is held out for use.

---