Ayurvedic medicament classification prevailed where ingredients matched Ayurvedic texts and packaging signalled medicinal use, not cosmetics.

Classification of the product depended on whether it satisfied the Supreme Court tests for an Ayurvedic medicament: the ingredients had to be traceable to authentic Ayurvedic texts and the product had to be recognised by users as an Ayurvedic medicine. The ingredients were shown to appear in Ayurvedic texts, and the packaging described relief from headache, fatigue and stress rather than daily cosmetic use. Applying those criteria and following prior Tribunal reasoning, the product was treated as an Ayurvedic preparation under Chapter 30, not as a hair oil or cosmetic under Heading 33.05, so the duty demand, interest and penalty could not survive.

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Issues: Whether the product in question was classifiable as an Ayurvedic medicament under Chapter 30 or as a hair oil/cosmetic under Subheading 33.05.

Analysis: Classification of such goods turned on the criteria laid down by the Supreme Court: whether the ingredients are indicated in authentic Ayurvedic texts and whether the product is known as an Ayurvedic medicine by the users. The product's ingredients were shown to be mentioned in Ayurvedic texts. The packing described relief from headache, fatigue and stress and did not indicate daily use. On these features, and following earlier Tribunal view in a similar matter, the product was treated as an Ayurvedic preparation rather than a cosmetic or hair oil. Once the classification as Ayurvedic medicine was accepted, the duty demand could not survive, and the connected interest and penalty also fell.

Conclusion: The product was held classifiable as an Ayurvedic medicine, not as a hair oil or cosmetic, and the demand, interest and penalty were unsustainable.

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