Ayurvedic medicament classification survives gelatine capsule form, with remand for reconsideration of precedents and duty exemption

An ayurvedic medicament does not lose its character merely because it is packed in gelatine capsules; classification depends on the product's essential character, active ingredients and primary function. The Tribunal also noted that earlier decisions on the same classification issue had not been considered by the lower appellate authority, and that eligibility for concessional duty after 1994 had not been examined. The matter was remanded for fresh decision after considering the relevant precedents and the exemption claim.

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Issues: Whether the product remained an ayurvedic medicament despite being filled in gelatine capsules, and whether the matter required remand for fresh consideration of the precedent decisions and eligibility for concessional duty.

Analysis: The Tribunal held that a medicament does not lose its character as an ayurvedic preparation merely because it is contained in a palatable or capsule form such as gelatine. The essential character and primary function of the medicine are derived from the active ingredients, and earlier decisions on the same classification question were not considered by the lower appellate authority. The Tribunal also found that the question of eligibility for concessional duty after 1994 had not been examined.

Conclusion: The product was not to be denied the character of an ayurvedic medicament on the ground that it was packed in gelatine capsules, and the matter was remanded for fresh decision after considering the relevant precedents and exemption claim.

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