Tariff classification turns on essential character: Moisturex was treated as a medicament, not a skin-care cosmetic.

For tariff classification, a product's essential character depends on its primary use and its therapeutic or prophylactic properties, not merely on its sale over the counter or the limited proportion of medicinal ingredients. Applying that test, the SC found that Moisturex, containing ingredients such as urea, lactic acid and propylene glycol and indicated for dry skin conditions and fissure feet, was intended for cure and treatment rather than mere skin care. It was therefore classifiable as a medicament under Heading 30.03 and not as a cosmetic or skin-care preparation under Heading 33.04, and the excise challenge to that classification failed.

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Issues: Whether the product Moisturex was classifiable as a medicament under Heading 30.03 of the Central Excise Tariff Act, 1985 or as a skin care preparation under Heading 33.04.

Analysis: The tariff scheme distinguished medicaments from beauty or skin-care preparations. Heading 30.03 covered medicinal products used for internal or external treatment or prevention of ailments, while Heading 33.04 covered preparations for the care of the skin other than medicaments. The decisive factors were the product's composition, its therapeutic or prophylactic attributes, and its primary use in trade and by consumers. The presence of pharmaceutical ingredients such as urea, lactic acid, and propylene glycol, together with the stated indications for dry skin conditions, fissure feet, and related disorders, showed that the product was intended for cure and treatment rather than mere care. The fact that it was sold over the counter and contained medicinal ingredients in limited proportion did not alter its essential character.

Conclusion: Moisturex was a medicament classifiable under Heading 30.03 and not a skin-care cosmetic under Heading 33.04; the conclusion was in favour of the assessee.

Final Conclusion: The product's essential character was medicinal, and the excise appeals challenging its classification were without merit.

Ratio Decidendi: For tariff classification, the essential character of a product is determined by its primary use and curative or prophylactic properties, and a product intended to treat an ailment remains a medicament even if sold over the counter and containing medicinal ingredients only in small proportion.

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