Ayurvedic medicament classification turns on essential character, with inactive additives not defeating tariff treatment.

Gripe Water was held classifiable as an Ayurvedic medicament under Heading 3003.30 because its essential character was imparted by acknowledged Ayurvedic active ingredients. Preservatives, stabilisers, sweeteners and flavouring agents did not alter that character, and the mere presence of ingredients known to modern science was not enough to change the classification. The percentage of Ayurvedic ingredients was not decisive. On that basis, the contrary excise demand and consequential penalty could not be sustained, and the assessee's classification claim was upheld.

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Issues: Whether the product Gripe Water was classifiable as an Ayurvedic medicament under Heading 3003.30 of the Central Excise Tariff Act, 1985, or under a different tariff heading.

Analysis: The product contained acknowledged Ayurvedic active ingredients, while the other constituents were preservatives, stabilisers, sweeteners and flavouring agents. The inactive ingredients did not alter the essential character of the product, and the presence of ingredients known to modern science did not by itself take away its Ayurvedic character. The classification turned on the essential character imparted by the active Ayurvedic ingredients, and the percentage of such ingredients was not decisive. On the material before it, the product was treated as an Ayurvedic preparation.

Conclusion: The product was rightly classifiable under Heading 3003.30 of the Central Excise Tariff Act, 1985, and the contrary demand could not be sustained.

Final Conclusion: The assessee succeeded, the classification in its favour was upheld, and the demand and consequential penalty did not survive.

Ratio Decidendi: For classification of an Ayurvedic preparation, the essential character imparted by the Ayurvedic active ingredients prevails over inactive additives, and the presence or percentage of non-Ayurvedic ingredients does not by itself alter the tariff classification.

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