Ayurvedic medicament classification upheld for bath and toilet extract; actual therapeutic use was not required

Classification of an extract for bath and toilet preparation turned on whether it was an Ayurvedic medicament under Heading 30.03 or a cosmetic product under Heading 33.07. The Tribunal followed the Supreme Court's treatment of a similar product and held that classification under Heading 30.03 did not require proof of actual therapeutic or prophylactic use. It also noted that the lower authority had relied on the same Board circular approved in that precedent. The product was therefore sustained under Heading 30.03, with the Revenue's challenge failing.

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Issues: Classification of the product 'extract for bath and toilet preparation' under Heading 30.03 as an Ayurvedic medicament or under Heading 33.07 as claimed by Revenue.

Analysis: The dispute turned on whether the goods answered the description of an Ayurvedic medicament. The lower authority had classified the product under Heading 30.03 and extended the benefit of nil duty under Notification No. 75/94-C.E. The Tribunal noted that a similar product had already been classified under Heading 30.03 by the Supreme Court, which held that for such classification it was not necessary to establish that the product must actually be used for therapeutic or prophylactic purposes. The Tribunal also noted that the lower authority had relied on the same Board circular that had been approved in that decision.

Conclusion: The classification under Heading 30.03 was upheld and the Revenue's challenge to it failed.

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