Ayurvedic preparation classification dispute remanded for fresh adjudication after disclosure of the chemical examiner's report.

Classification of the product as an Ayurvedic preparation under Chapter 30 or a cosmetic under Chapter 33 required fresh adjudication because the chemical examiner's report had not been supplied to the assessee for rebuttal and the evidence was not examined on the basis of the drug licence, authoritative Ayurvedic texts, common parlance, and the settled twin tests for Ayurvedic preparations. The existing classification analysis was therefore incomplete, and the matter was remanded to the original adjudicating authority for a de novo decision after disclosure of the report and opportunity to contest it.

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Issues: Whether the dispute regarding classification of the product as an Ayurvedic preparation under Chapter 30 or as a cosmetic under Chapter 33 required remand for fresh adjudication after consideration of the drug licence, Ayurvedic texts and the chemical examiner's report.

Analysis: The product was claimed to be manufactured under a drug licence and to contain ingredients found in authoritative Ayurvedic texts, while the lower authorities had relied mainly on the chemical examiner's opinion classifying it as a cosmetic. The report had not been supplied to the assessee for rebuttal, and the matter had not been examined on the basis of the ingredients, the common parlance understanding of the product, and the tests recognised for Ayurvedic medicines. The Board's circular and the settled twin tests for classification of Ayurvedic preparations required a fuller examination of the evidence before a final determination.

Conclusion: The impugned order was set aside and the matter was remanded to the original adjudicating authority for fresh decision after supplying the chemical examiner's report and permitting the assessee to contest it.

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