Medicament classification test applied to herbal face cream and lotion, with therapeutic use defeating cosmetic classification.

Classification of Fairplus Herbal Face Cream and Fairplus Face Lotion turned on whether the products were used to cure or treat ailments and whether they contained ingredients with curative effect. Applying the medicament classification test, the products' ingredients and claimed uses for relieving varicose veins, sunburn, inflammation and rashes showed therapeutic and prophylactic character. They therefore satisfied the criteria for medicaments rather than mere cosmetic preparations. On that basis, the products were classified under Chapter 30 and excluded from Chapter 33, and the Revenue's appeal failed.

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Issues: Whether the products Fairplus Herbal Face Cream and Fairplus Face Lotion were classifiable as medicaments under Chapter 30 of the Central Excise Tariff Act, 1985 or as cosmetic preparations under Chapter 33.

Analysis: The products were examined in the light of the principles governing classification of medicaments. The decisive consideration was whether they were used for curing or treating ailments and whether they contained ingredients having curative effect, even if present in small quantities. The products were found to contain several ingredients used for relieving conditions such as varicose veins, sunburn, inflammation and rashes, and were shown to be used for therapeutic and prophylactic purposes. On that basis, they satisfied the test for medicaments rather than mere cosmetic preparations.

Conclusion: The products were held classifiable under Chapter 30 and not under Chapter 33, and the Revenue's appeal failed.

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