Court affirms 'Lip Salve' as skin care, not medicament, under Heading 33.04.

ALPINE INDUSTRIES Versus COLLECTOR OF CENTRAL EXCISE, NEW DELHI

ALPINE INDUSTRIES Versus COLLECTOR OF CENTRAL EXCISE, NEW DELHI - 2003 (152) E.L.T. 16 (SC), [2003] 131 STC 9 (SC), 2003 AIR 935, 2003 (1) SCR 313, 2003 ... Issues:
Classification of product 'Lip Salve' for excise duty under Heading 33.04 as 'a preparation for care of skin' or under Heading 30.03 as a 'medicament'.

Analysis:
The case involved two appeals under Section 35L(b) of the Central Excises & Salt Act, 1944 challenging the Tribunal's judgment classifying 'Lip Salve' for excise duty. The majority opinion held it to be a skin care product under Heading 33.04, while the minority view favored classification as a 'medicament' under Chapter 30.03, subject to re-determination by the Assistant Collector of Central Excise.

The appellant argued that 'Lip Salve' is a medicament for treating sore, inflamed, roughened, and cracked lips, supplied exclusively to the Defence Department for military personnel in high altitude areas. The product's chemical composition, marketing, and common parlance meaning were scrutinized. However, the Revenue contended that it is a protective cream for chapping of lips, not limited to high altitude areas, used for skin protection against natural factors like cold and weather conditions.

The Court emphasized applying the "commercial parlance theory" for classification, considering the popular meaning attached to the product. It cited precedents like the Dant Manjan Lal case and the Selsun case to illustrate the distinction between medicinal preparations and cosmetic products. The appellant relied on the B.P.L Pharmaceuticals case to argue for 'Lip Salve' as a medicament, specially prepared for defense personnel in harsh conditions.

Examining the pharmaceutical and medical literature, the Court concluded that 'Lip Salve' is a skin care cream, not a medicament, primarily used for skin protection. It noted that the product is not curative but preventive, suitable for everyone, and not exclusively for military personnel in high altitude areas. The appellant's classification request under Chapter 30 as a pharmaceutical product was rejected based on the Schedule's interpretation rules.

The Court analyzed Chapter 33 notes, particularly Note No. 5, which lists products like beauty creams and barrier creams, falling under entry 33.04 for skin care preparations. Considering the product's nature as a protective cream against skin irritants, the Court affirmed the Tribunal's majority opinion, dismissing the appeals. The product was classified under entry 33.04 as a preparation for skin care, not a medicament under Chapter 30.03.