Ayurvedic medicament classification depends on presentation and composition, not place of sale, for herbal hair oil.

A herbal hair oil marketed with Ayurvedic packaging, label and literature was treated as an Ayurvedic medicament under Chapter 30 because its presentation, herbal composition and manufacture under a drug licence in accordance with Ayurvedic text showed medicinal character. Chapter Note 2 to Chapter 33 did not apply, as the product was not put up with indications of cosmetic or toilet use. Sale through general stores was not decisive, since classification depends on the nature and presentation of the product, not the place of sale. The product was therefore correctly classified as a medicament rather than a cosmetic or toilet preparation.

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Issues: Whether the product, a herbal hair oil marketed as Ayurvedic medicine, was classifiable as a medicament under Chapter 30 of the Central Excise Tariff Act, 1985 or as a cosmetic or toilet preparation under Chapter 33 of that Act.

Analysis: The packing, label and literature described the product as an Ayurvedic medicine and not as a cosmetic or toilet preparation. The composition consisted of herbal ingredients and the product was manufactured under a drug licence in accordance with Ayurvedic text. Chapter Note 2 to Chapter 33 applies only where products are put up with labels, literature or other indications showing use as cosmetics or toilet preparations, which was not the position here. The fact that the product was sold through general stores rather than pharmacies was held not to be decisive, since the nature of the product depends on what is sold and how it is presented, not merely on the place of sale. The record and the tariff and HSN notes supported treatment of the product as an Ayurvedic medicament.

Conclusion: The product was correctly classified as an Ayurvedic medicament under Chapter 30 and not as a cosmetic or toilet preparation under Chapter 33.

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