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of <h1>Classification of Actifresh and Plethico Mint as sugar confectionery upheld; Plethico Byte and Travisil deemed ayurvedic medicines.</h1> The Tribunal classified products Actifresh and Plethico Mint as sugar confectionery under heading 1704 due to lack of therapeutic value, while Plethico ... Classification of goods - classification of the tablets called actifresh, pletico mint, plethico byte and travisil - Held that:- Ice mint tablets with the base of sugar and containing menthol are not ayurvedic medicines falling under chapter 30, but are sugar confectionery falling under heading 1704 of the central excise tariff. According to the respondent this judgment had been set aside by the apex court vide judgment dated 03.08.1999 reported in [1999 (8) TMI 75 - SUPREME COURT OF INDIA]. However, on going through the apex court judgment, we find that the Tribunal s judgment in the case of Warner Hindustan Ltd. vs CCE (1999 (8) TMI 75 - SUPREME COURT OF INDIA) classifying ice mint tablets as sugar confectionery under heading 1704 had not been set aside on merit but had been set aside on the ground that on the Department s appeal against the Tribunal s order, the Tribunal for the first time classified the ice mint tablets as sugar confectionery under heading 1704 while neither side had adduced arguments for classification of the ice tablets as sugar confectionery under heading 1704. Heading 1704 of the central excise tariff is based on the HSN heading 17.04. Therefore, the scope of heading 17.04 of the central excise tariff would be same as the scope of the HSN heading 17.04. Heading 17.04 of the central excise tariff and heading 17.04 of the HSN cover sugar confectionery (including white chocolate, not containing cocoa) - Each table of Actifresh consists of 1495 mg of sucrose and 990.30 mg of liquid glucose and active ingredient is 4.8 mg of pudina ark and 3.90mg of nilgiri oil which is nothing but eucalyptus oil. In view of the HSN explanatory notes mentioned above, actifresh would be classifiable as sugar confectionery under heading 1704, as the ingredients are mainly flavoring agents not having any therapeutic value. For the same reason, plethico mint tablet which, in addition to the sugar/glucose base contains 0.15 mg of pudina ark would be classifiable as sugar confectionery unde heading 1704 as the pudina ark is only a mouth freshener or flavoring agent. As regards, plethico byte , each tablet of which grm, in addition to sucrose and liquid glucose base contains 2.5 mg of mulethi, the same would be classifiable as ayurvedic medicine under heading 3004 as mulethi acts a therapeutic agent for sore throat. As regards, travisil , each tablet contains extracts of adussa, pipal, black pepper (kali Mirch), dry ginger (saunth), mulethi, amla, haldi, katha, saunf, tulsi, harad, baheda, kulingam, chirmitri patra and pudina satva. In our view since, this product, though with a base of sugar/ glucose has ingredients based on various herbs which have therapeutic value for giving relief in case of sore throat; the same would be classifiable under heading 3004 of chapter heading 30 of the central excise tariff. Product plethico byte containing mulethi and travisile lozenges , which are marketed by the appellant as medicines for sore throat/ cough would be correctly classifiable as ayurvedic medicine under heading 3004 of the Central Excise Tariff. Accordingly, we uphold the impugned order with regard to classifiacation of these products. However, as discussed above, the other two products actifresh and plethico mint which are basically mouth fresheners are correctly classifiable as sugar confectionery under heading 1704 of the tariff and in this regard the impugned order is not correct, and the same has to be modified to this extent. - Impugned order is set aside. With regard to the classification of Travisile lozenges and Plethico Byte , we set aside the impugned order with regard to classification of Actifresh and Plethico Mint and we order that these products would be classifiable as sugar confectionery under heading 1704 and the Appellant would be liable to pay duty on this basis alongwith interest - Decided partly in favour of Revenue. Issues: Classification of products as ayurvedic medicines or sugar confectionery under the Central Excise Tariff.Analysis:1. The dispute in this case revolves around the classification of products named Actifresh, Plethico Mint, Plethico Byte, and Travisil under the Central Excise Tariff. The Revenue contended that these products should be classified as sugar confectionery under heading 1704, while the respondent argued for their classification as ayurvedic medicines under sub-heading 300400 of the tariff.2. The Department issued Show Cause Notices based on the judgment in the case of Warner Hindustan Ltd. vs Collector, where it was held that products with small quantities of certain ingredients may not qualify as ayurvedic medicines. The Revenue appealed against the original order classifying the products as ayurvedic medicines, leading to the present appeal.3. The composition of the products was analyzed, with Actifresh and Plethico Mint primarily containing sugar and glucose with small quantities of flavoring agents like pudina ark and nilgiri oil. Plethico Byte contained mulethi, known for its therapeutic properties, while Travisil included various herbs with therapeutic value for sore throat relief.4. The Tribunal referred to the HSN explanatory notes for heading 1704, which include preparations with medicinal properties under chapter 30, provided they have therapeutic or prophylactic uses. Actifresh and Plethico Mint were classified as sugar confectionery due to the lack of therapeutic value in their ingredients, while Plethico Byte and Travisil were considered ayurvedic medicines for their therapeutic properties.5. The Tribunal cited the apex court's ruling in CCE Calcutta vs Sharma Medical Works to emphasize that the percentage of active ingredients does not solely determine a product's classification as a medicament. The main criteria are the product's use and intended therapeutic benefits, not necessarily requiring a doctor's prescription for classification.6. Consequently, the Tribunal upheld the classification of Plethico Byte and Travisil as ayurvedic medicines under heading 3004, while reclassifying Actifresh and Plethico Mint as sugar confectionery under heading 1704. The Revenue's appeal was partly allowed, with the duty liability adjusted accordingly.7. In conclusion, the Tribunal's detailed analysis considered the ingredients, therapeutic properties, and classification criteria to determine the appropriate categorization of the products under the Central Excise Tariff, ensuring a fair and reasoned decision based on legal precedents and statutory provisions.
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