Ayurvedic medicament classification prevails where products are made from Ayurvedic texts, licensed as drugs, and used therapeutically.

Products manufactured in accordance with Ayurvedic texts, under a drug licence, and used for treatment of skin ailments were treated as Ayurvedic medicaments because they had therapeutic, prophylactic or curative value. The tribunal applied the principle that such products are classifiable as medicaments rather than cosmetics where their composition and use indicate a medicinal purpose, not beautification. Classification under Tariff Heading 3003.30 was accepted, with consequential relief to the assessee.

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Issues: Whether the products in question were classifiable as Ayurvedic medicaments under Tariff Heading 3003.30 or as cosmetics under Tariff Heading 3304.00.

Analysis: The products were manufactured with ingredients stated to be found in Ayurvedic texts, and the record showed that a drug licence had been obtained for their manufacture as Ayurvedic medicaments. Their use was found to be for treatment of skin ailments and not for beautification. The reasoning applied was that where a product is manufactured according to Ayurvedic texts, has therapeutic, prophylactic or curative value, and is manufactured under a drug licence, it is to be treated as a medicament and not as a cosmetic.

Conclusion: The products were held to be Ayurvedic medicaments and not cosmetics, and classification under Tariff Heading 3003.30 was accepted.

Final Conclusion: The appeal succeeded and the assessee obtained the benefit of classification as Ayurvedic medicaments with consequential relief.

Ratio Decidendi: A product manufactured in accordance with Ayurvedic texts, having therapeutic, prophylactic or curative use and produced under a drug licence, is classifiable as an Ayurvedic medicament and not as a cosmetic.

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