Ayurvedic medicament classification prevails where therapeutic use and drug licence outweigh cosmetic appearance for external application.

A preparation manufactured under an ayurvedic drug licence was held to fall under Heading 30.03 as an ayurvedic medicament because its composition, literature and leaflet showed therapeutic use for skin ailments, wounds, cracks, infections and related conditions. The product's external application and reference to dermal care did not make it a cosmetic where the stated uses were curative rather than beauty-enhancing. On that basis, the classification as a cosmetic under Heading 33.04 was rejected and the demand based on cosmetic classification failed.

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Issues: Whether the product in question was classifiable as an ayurvedic medicament under Heading 30.03 or as a cosmetic under Heading 33.04.

Analysis: The product was marketed for external use and was manufactured under a valid ayurvedic drug licence during the period in dispute. Its declared composition was predominantly castor-based with a proportion of Tulsi extract, and the leaflet accompanying it described multiple therapeutic uses for skin diseases, pains, wounds, cracks, infections, and related ailments. The medicinal uses of castor oil and Tulsi were also supported by literature relied upon by the assessee. The description of the product as being for dermal care did not convert it into a cosmetic, because the leaflet disclosed curative applications rather than beauty-enhancing use. In the absence of any dispute about composition, medicinal properties, or the drug licence, the product answered the description of a medicament and not a cosmetic.

Conclusion: The product was classifiable under Heading 30.03 as an ayurvedic medicament and not under Heading 33.04 as a cosmetic.

Final Conclusion: The demand founded on cosmetic classification failed, the impugned order was set aside, and the appeal succeeded.

Ratio Decidendi: A preparation manufactured under a drug licence and shown by its composition and stated uses to have therapeutic or curative application for external ailments is classifiable as a medicament, and not as a cosmetic merely because it is also used for dermal care.

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