2011 (3) TMI 1215 - AT - Central Excise

Tribunal reclassifies 'Vicks Cough Drop' as ayurvedic medicaments .39

The Tribunal classified 'Vicks Cough Drop' as ayurvedic medicaments under CHS no. 3003.39, overturning the lower authorities' classification as P&P ... Classification under Chapter heading 3003.39 as Ayurvedic medicaments - Classification under Chapter heading 3003.10 as P&P medicaments - Application of Neutrela Health Products v. CCE precedent - Binding precedent of the Supreme CourtClassification under Chapter heading 3003.39 as Ayurvedic medicaments - Classification under Chapter heading 3003.10 as P&P medicaments - Application of Neutrela Health Products v. CCE precedent - Product 'Vicks Cough Drop' is classifiable as an Ayurvedic medicament under Chapter heading 3003.39 and not as P&P medicaments under Chapter heading 3003.10. - HELD THAT: - The Tribunal found the question of classification to be settled by the Supreme Court in Neutrela Health Products v. CCE, which held that Vicks products are Ayurvedic medicaments classifiable under heading 3003.39. This Bench also noted a prior decision of the Tribunal in the appellant's own case applying the same precedent. Applying the binding higher court precedent and the earlier Tribunal ruling, the Tribunal concluded that the impugned classification under heading 3003.10 as P&P medicaments was incorrect. The impugned order was therefore set aside and the appeal allowed with consequential relief. [Paras 3]Impugned order classifying Vicks cough drops under Chapter heading 3003.10 is set aside; Vicks cough drops are classifiable under Chapter heading 3003.39 and the appeal is allowed with consequential relief.Final Conclusion: Appeal allowed; Vicks Cough Drops held to be Ayurvedic medicaments under Chapter heading 3003.39, impugned classification under Chapter heading 3003.10 set aside, with consequential relief. Issues involved: Classification of 'Vicks Cough Drop' under CHS no. 3003.10 as P&P Medicaments or under CHS no. 3003.39 as Ayurvedic medicaments.Analysis:- The appellants challenged the classification of 'Vicks Cough Drop' by the lower authorities as P&P Medicaments under CHS no. 3003.10.- Despite the absence of the appellants during the hearing, the appeal was considered on merits.- The central issue in the case was whether 'Vicks Cough Drop' should be classified as Ayurvedic medicaments under Chapter heading 3003.39 or as P&P medicaments under Chapter heading 3003.10.- The Tribunal referred to a previous judgment by the Hon'ble Apex Court in the case of Neutrela Health Products vs. CCE 2003, where it was established that Vicks are ayurvedic medicaments classifiable under heading 3003.39.- The Tribunal also cited its own previous decision in the appellants' case, where it followed the Neutrela judgment and classified Vicks as ayurvedic medicaments under heading 3003.39.- Based on the precedents and legal interpretation, the Tribunal concluded that 'Vicks Cough Drop' should be classified as ayurvedic medicaments under chapter heading 3003.39.- Consequently, the impugned order classifying 'Vicks Cough Drop' as P&P medicaments under chapter heading 3003.10 was set aside, and the appeal was allowed with consequential relief.