Medicament classification prevails where a shampoo's dominant character is therapeutic, not cosmetic or toilet preparation.

Products whose dominant and essential character is medicinal are to be classified as medicaments under Chapter 30, even if marketed in shampoo form. The product literature, dosage instructions, prescription-based sale, warnings, and treatment-oriented indications for dandruff and fungal conditions showed therapeutic use, while the ketoconazole content at medicinal level and limited period of use reinforced its medicinal character. The Harmonised System of Nomenclature was treated as a safe guide in tariff classification, and a product does not become a cosmetic or toilet preparation merely because it also cleanses hair. The anti-dandruff precedent was applied on the same factual footing, so classification under Chapter 30 was upheld.

---

---

Issues: Whether the product Nizral Shampoo is classifiable as a patent or proprietary medicament under Chapter 30 of the Central Excise Tariff Act, 1985, or as a preparation for use on hair under Chapter 33.

Analysis: Classification turned on the essential character of the product and its predominant use. The product literature, dosage instructions, warnings, prescription-based sale, and stated indications showed that it was intended for treatment and prophylaxis of dandruff and related fungal conditions. The presence of ketoconazole at the therapeutic level, the limited period of use, and the description of the user as a patient supported its medicinal character. In tariff classification disputes, the Harmonised System of Nomenclature is a safe guide, and a product that is essentially a medicament does not become a cosmetic merely because it is in shampoo form or has some cleansing function. The earlier precedent on anti-dandruff preparations applied directly on these facts.

Conclusion: The product is classifiable as a medicament under Chapter 30 and not as a shampoo preparation under Chapter 33.

Final Conclusion: The classification adopted by the Tribunal was upheld, the Revenue's challenge failed, and the assessee's challenge to the contrary order also succeeded on the same legal footing.

Ratio Decidendi: Where the dominant and essential character of a product is medicinal, supported by therapeutic formulation, prescription-based use, and treatment-oriented literature, it is to be classified as a medicament and not as a cosmetic or toilet preparation merely because it is marketed in shampoo form.

---