Ayurvedic medicament classification upheld where natural ingredients and therapeutic character matched Ayurveda despite proprietary formula

Tiger Balm was held to fall within Ayurvedic medicaments under CET sub-heading 3003.39 because its natural ingredients were found in authoritative Ayurvedic texts and the First Schedule to the Drugs and Cosmetics Act, 1940. Its classification did not change merely because it was sold under a proprietary formula or had an asserted Chinese traditional origin, since the relevant test remained whether its ingredients and therapeutic character answered to Ayurveda in common parlance. The Revenue bore the burden to displace the assessee's classification claim and failed to do so on the material relied upon, so the assessee's classification was affirmed.

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Issues: Whether Tiger Balm was classifiable as an Ayurvedic medicament under CET sub-heading 3003.39 or as a patent or proprietary medicament under CET sub-heading 3003.10.

Analysis: The product contained natural ingredients, and those ingredients found mention in authoritative Ayurvedic texts and in the First Schedule to the Drugs and Cosmetics Act, 1940. A medicament does not lose its Ayurvedic character merely because it is manufactured under a proprietary formula or is said to have an origin in Chinese traditional medicine, if its ingredients and therapeutic character answer to Ayurveda. The burden to dislodge the assessee's classification claim lay on the Revenue, and that burden was not discharged on the material relied upon.

Conclusion: Tiger Balm was correctly classified as an Ayurvedic medicament under CET sub-heading 3003.39, and the Revenue's challenge failed.

Final Conclusion: The classification in favour of the assessee was affirmed and the Revenue appeal did not succeed.

Ratio Decidendi: A medicinal product containing ingredients recognised in authoritative Ayurvedic texts does not cease to be an Ayurvedic medicament merely because it is marketed under a proprietary formula or has a foreign traditional origin; the Revenue must prove that it is not so understood in common parlance.

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