Ayurvedic medicament classification: liquid herbal products marketed with therapeutic use were held classifiable under Chapter 30, not Chapter 33.

Ayurvedic products specifically labelled and marketed as classical medicines, with dosage directions, therapeutic indications, product literature and medicinal formulation, were held to fall under Chapter 30 as medicaments rather than under Chapter 33 as perfumes or toilet waters. Their liquid form or distillate-based composition did not, by itself, justify classification as toilet preparations, and the Chapter Note 1 exclusion to Chapter 30 was found inapplicable on the facts. The cited precedent on medicinal formulations marketed as medicines was applied, so the differential duty demand and penalty based on Chapter 33 classification could not be sustained and the assessee succeeded.

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Issues: Whether the impugned Ayurvedic products were correctly classified as perfumes and toilet waters under Chapter 33 or as medicaments under Chapter 30 of the Central Excise Tariff.

Analysis: The products were found to be specifically labelled and marketed as Ayurvedic classical medicines or essence of Ayurveda, with defined usage, dosage, and therapeutic indications. Their composition, manufacturing process, and product literature showed that they were not mere perfumes, toilet waters, or simple aqueous solutions. The exclusion in Chapter Note 1 to Chapter 30 was held inapplicable on the facts, and the reasoning in the cited precedent on classification of medicinal formulations marketed as medicines was found applicable.

Conclusion: The products were not classifiable under Chapter 33 and were to be treated as medicaments under Chapter 30. The impugned order was set aside, in favour of the assessee.

Final Conclusion: The demand of differential duty and penalty based on classification under Chapter 33 could not be sustained, and the appeal succeeded.

Ratio Decidendi: Goods manufactured and marketed with therapeutic use as Ayurvedic medicaments, supported by product literature, dosage instructions, and medicinal formulation, cannot be classified as perfumes or toilet waters merely because they are in liquid form or based on distillates.

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