Ayurvedic medicament classification prevails where therapeutic use and drug-licence evidence show medicinal character over cosmetics.

Products manufactured with Ayurvedic ingredients and therapeutic value were classifiable as patent and proprietary Ayurvedic medicines under Chapter Heading 3003.39, not as cosmetics or toilet preparations under Chapter Heading 3306.90. Their use for treatment of gum and skin disorders, manufacture under a drug licence, supporting certificates from doctors and drug agencies, and use under medical supervision established medicinal character. The earlier view treating similar goods as cosmetics was found unsustainable in light of later Supreme Court authority recognising such products as Ayurvedic medicaments. Classification accordingly favoured the assessee.

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Issues: Whether the products in question were classifiable as Ayurvedic patent and proprietary medicines under Chapter Heading 3003.39 of the Central Excise Tariff Act, 1985, or as cosmetics/toilet preparations under Chapter Heading 3306.90.

Analysis: The products were found to be manufactured with Ayurvedic ingredients, to possess therapeutic value, and to be used for treatment of gum and skin disorders rather than as cosmetics. Their manufacture under drug licence, supporting certificates from doctors and drug agencies, and use under medical supervision indicated medicinal character. The earlier view treating the goods as cosmetics was held to be unsustainable in light of the later Supreme Court authority distinguishing the earlier cosmetic classification cases and recognising similar products as Ayurvedic medicaments.

Conclusion: The goods are classifiable as patent and proprietary Ayurvedic medicines under Chapter Heading 3003.39 and not as cosmetics under Chapter Heading 3306.90, in favour of the assessee.

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