Tribunal remands case for reclassification of product based on Ayurvedic texts.

The Tribunal remanded the case to the adjudicating authority for a fresh order, highlighting the necessity for a thorough analysis of the product's ingredients and their alignment with Ayurvedic texts to ascertain its proper classification as either Ayurvedic or P&P medicament under the Central Excise Tariff.

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Issues involved: Classification of product as Ayurvedic medicament under 3003.30 or P&P medicament under 3003.39 in Central Excise Tariff 1985.

Detailed Judgment:

Issue 1: Classification of product

The appellant claimed that the product, Sensur Rubefacient and Herbyl Skin Ointment, is an Ayurvedic medicine as it is manufactured using Ayurvedic ingredients specified in Ayurveda Grantha and is sold as Ayurvedic medicine with the Drug Authority's license. They argued that the presence of non-active ingredients like preservatives does not change the classification, citing various judgments in support. The Department contended that the use of non-Ayurvedic ingredients like Boric acid and Lanoline Anhydrous makes the product non-Ayurvedic. The Tribunal observed that to classify a product as Ayurvedic medicament, it should be made from Ayurvedic ingredients and sold as Ayurvedic medicine. The Tribunal agreed with the appellant's argument that even if non-active ingredients are present, as long as the active ingredient is Ayurvedic, the product can be classified as Ayurvedic medicament. However, the Tribunal found that a proper examination of the ingredients and their presence in Ayurvedic texts was lacking. Therefore, the matter was remanded to the adjudicating authority for a fresh order, considering the Supreme Court judgments cited by the appellant.

Conclusion:

The Tribunal remanded the matter to the adjudicating authority for a fresh order, emphasizing the need for a detailed examination of the ingredients used in the product and their presence in Ayurvedic texts to determine the correct classification as Ayurvedic or P&P medicament under the Central Excise Tariff.

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