1995 (3) TMI 97 - SC - Central Excise

Supreme Court: Amrutanjan Pain Balm Ayurvedic classified under Tariff Heading 3003.30

The Supreme Court classified 'Amrutanjan Pain Balm Ayurvedic' under Tariff Heading 3003.30 as an ayurvedic medicine, attracting a nil rate of duty. ... Classification as an ayurvedic medicament - Scope of the term ayurvedic medicine vis-a-vis refined or pharmaceutical-grade ingredients - Use of articles common to both ayurvedic and modern western pharmacopeia - Significance of the suffix 'IP' as denoting pharmaceutical quality - Misclassification based on alleged substitution or relabelling to evade excise duty - Tariff Heading 3003.30 - entitlement to nil rate by reason of being an ayurvedic medicamentClassification as an ayurvedic medicament - Scope of the term ayurvedic medicine vis-a-vis refined or pharmaceutical-grade ingredients - Use of articles common to both ayurvedic and modern western pharmacopeia - Significance of the suffix 'IP' as denoting pharmaceutical quality - Tariff Heading 3003.30 - entitlement to nil rate by reason of being an ayurvedic medicament - Misclassification based on alleged substitution or relabelling to evade excise duty - Appellant's product 'Amrutanjan Pain Balm Ayurvedic' is an ayurvedic medicament and is entitled to classification under Tariff Heading 3003.30 as held by the Court. - HELD THAT: - The Tribunal erred in holding that the balm was not ayurvedic solely because its principal constituents were described as Menthol IP, Camphor IP, Turpentine IP and Methyl Salicylate IP. The letters 'IP' indicate pharmaceutical quality and do not render an article synthetic or alien to ayurvedic materia medica. The same article may be recognised and used in both ayurvedic and western sciences and may appear under different nomenclatures in authoritative texts; that dual recognition and refinement for medicinal use do not convert an ayurvedic preparation into a non-ayurvedic one. The Tribunal's conclusion that the appellants had imported synthetic chemicals and engaged in relabelling to evade excise duty was not tenable as a basis to deny the classification when, on the evidence, the ingredients were known to ayurveda and were refined for use in medicaments. For these reasons the appellant's contention that the balm is an ayurvedic medicine was accepted and the contrary finding set aside.Appeal allowed; product held to be an ayurvedic medicament entitled to classification under Tariff Heading 3003.30.Final Conclusion: The Court allowed the appeal, set aside the Tribunal's order and held that 'Amrutanjan Pain Balm Ayurvedic' is an ayurvedic medicine and is to be classified accordingly under Tariff Heading 3003.30. Issues involved: Classification of 'Amrutanjan Pain Balm Ayurvedic' under Tariff Heading 3003.30 of the Central Excise Tariff Act, 1985 and whether it qualifies as an ayurvedic medicament attracting nil rate of duty.Summary:The Supreme Court, in this appeal, addressed the classification of the appellant's product, 'Amrutanjan Pain Balm Ayurvedic,' under Tariff Heading 3003.30. The appellant contended that the balm should be classified as an ayurvedic medicament and attract a nil rate of duty. However, the Customs, Excise & Gold (Control) Appellate Tribunal and lower authorities disagreed, stating that the balm's main ingredients were synthetic in nature, not aligning with traditional ayurvedic principles. The Tribunal accused the appellant of attempting to evade excise duty by altering ingredient names on invoices and labels to ayurvedic terms. The Supreme Court noted that the same ingredients could be used in both ayurvedic and western sciences, and the presence of 'IP' denoted pharmaceutical quality. The Court concluded that the ingredients were known in both sciences and refined for medicinal use, thus classifying the balm as an ayurvedic medicine. Consequently, the appeals were allowed, the previous judgment was set aside, and the balm was recognized as an ayurvedic medicine for classification purposes.