Settled classification of Ayurvedic medicament defeats differential duty demand based on overruled contrary heading.

Himtaj Oil was treated as classifiable under Heading 3003.30 as an Ayurvedic medicament, because the product had already been held in the assessee's own case to fall under that heading and the contrary classification order relied on by the revenue had been set aside. On that settled classification position, a demand for differential duty based solely on sub-heading 3305.10 could not be sustained, and the demand was set aside.

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Issues: Whether Himtaj Oil was classifiable under Heading 3003.30 as an Ayurvedic medicament, and whether the demand of differential duty raised on the basis of classification under sub-heading 3305.10 was sustainable.

Analysis: The product had already been held in the assessee's own case to fall under Heading 3003.30. The earlier classification order relied upon by the revenue authorities had been set aside by the Tribunal. In view of the settled classification position, the demand founded on the contrary classification could not survive.

Conclusion: Himtaj Oil was held classifiable under Heading 3003.30 as an Ayurvedic medicament, and the demand of differential duty was set aside.

Ratio Decidendi: Where the classification dispute has already been finally decided in favour of the assessee, a duty demand based solely on the overruled contrary classification cannot be sustained.

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