Ayurvedic medicament classification turned on primary use, not retail sale without prescription, keeping the goods in Chapter 30.

Ayurvedic products were classified by applying the common parlance and primary use tests, with the decisive question being whether the goods were mainly meant to treat or prevent ailments rather than to serve as cosmetics or hair-care preparations. Products manufactured in accordance with authoritative Ayurvedic texts and under an Ayurvedic and Siddha drug licence were treated as medicaments, and their therapeutic and prophylactic ingredients, as understood by doctors, dealers and users, supported that classification. Sale across the counter without prescription and retail packaging were held not to change the tariff character. The goods were therefore classified under Chapter 30 as ayurvedic medicaments and not under Chapter 33 as cosmetics.

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Issues: Whether the impugned products, including the hair oils and Danda Dhavana Churnam, were classifiable as ayurvedic medicaments under Chapter 30 of the Central Excise Tariff Act, 1985 or as cosmetics/preparations under Chapter 33 of the Central Excise Tariff Act, 1985.

Analysis: The products were shown to be manufactured according to authoritative Ayurvedic texts and under a drug licence issued for Ayurvedic and Siddha medicaments. The classification question was decided by applying the common parlance and primary use tests, with emphasis on whether the goods were mainly intended to cure or treat ailments rather than to beautify or provide mere hair care. The fact that the goods were sold across the counter without prescription, or that they were packed for retail sale, was held not to be ative. The therapeutic and prophylactic character of the ingredients, the understanding of doctors, dealers and users, and the formulae prescribed in classical Ayurvedic works supported treatment of the products as medicaments.

Conclusion: The impugned goods were held to be ayurvedic medicaments classifiable under Chapter 30 and not cosmetics under Chapter 33, and the Revenue's appeals failed.

Final Conclusion: The classification adopted by the Commissioner (Appeals) was affirmed, and the assessee's products retained their treatment as Ayurvedic medicaments.

Ratio Decidendi: For tariff classification, the decisive test is the product's primary use and trade understanding; a preparation with therapeutic or prophylactic ingredients manufactured in accordance with authoritative Ayurvedic texts is a medicament, and its sale without prescription or retail packaging does not by itself make it a cosmetic.

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