Chapter 30 exclusion for herbal oil leads to hair-oil classification and 18% GST under Chapter 3305.

Himsa Plus Oil was held not to be an Ayurvedic medicament under Chapter 30 because Chapter 30 excludes preparations of headings 3303 to 3307 even where therapeutic or prophylactic claims are made. The label described it as a herbal cool oil for relief from stress, pain, dandruff, hair fall and headache, but this was not treated as evidence of treatment of disease, illness or injury. The absence of dosage instructions, physician guidance and proof of manufacture in strict accordance with authoritative Ayurvedic formulae supported classification as a hair oil/preparation for use on the hair under Chapter 3305, attracting GST at 18%.

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Issues: Whether Himsa Plus Oil is classifiable as an Ayurvedic medicament under Chapter 30 and taxable at the lower rate, or whether it is a hair oil/cosmetic preparation classifiable under Chapter 33 and taxable at 18%.

Analysis: The ruling examined the competing tariff entries under Chapters 30 and 33, along with the relevant chapter notes and the GST rate notification. It was found that Chapter 30 excludes preparations of headings 3303 to 3307 even if they have therapeutic or prophylactic properties. The product label showed the article as a herbal cool oil for relief from stress, pain, dandruff, hair fall, headache and similar conditions, but these were held not to amount to treatment of disease, illness or injury. The absence of dosage directions or physician guidance on the label, and the failure to show manufacture strictly in accordance with authoritative Ayurvedic formulae, supported the view that the product was not an Ayurvedic drug. The product was treated as a preparation for use on the hair falling within Chapter 33.

Conclusion: Himsa Plus Oil is not a medicament under Chapter 30. It is classifiable under Chapter 3305/3305.90 as a hair oil or preparation for use on the hair and attracts GST at 18%.

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