Ayurvedic medicament classification turns on common parlance and authoritative texts, not merely on proprietary formulation.

Medicinal classification under the excise tariff for Ayurvedic products depends on common parlance understanding and whether the ingredients are traceable to authoritative Ayurvedic texts, in the absence of a statutory definition of Ayurvedic medicament. The accepted departmental twin test required the product to be known as an Ayurvedic medicine in common parlance and to contain ingredients mentioned in recognised Ayurvedic books. On that basis, medicated cough drops and throat drops manufactured under Ayurvedic drug licences were treated as Ayurvedic medicaments because their ingredients were supported by Ayurvedic texts and the revenue did not rebut evidence of their Ayurvedic character. A patented or proprietary formula, by itself, did not exclude the classification.

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Issues: Whether medicated cough drops, throat drops, and similar products manufactured under an Ayurvedic drug licence were classifiable as Ayurvedic medicaments under sub-heading 3003.30 of the Central Excise Tariff Act, 1985, or as patent or proprietary medicaments under sub-heading 3003.10.

Analysis: The determining factors were the absence of any definition of Ayurvedic medicament in the taxing statute, the need to apply the common parlance test, and the relevance of whether the ingredients were found in authoritative Ayurvedic texts. The Court also relied on the accepted departmental circular adopting the twin tests that a product must be known as an Ayurvedic medicine in common parlance and that its ingredients must be mentioned in authoritative Ayurvedic books. It held that the products were manufactured under Ayurvedic drug licences, their ingredients were all traceable to Ayurvedic texts, and the revenue had not rebutted the evidence showing that the products were understood and marketed as Ayurvedic medicines.

Conclusion: The products were held to be Ayurvedic medicaments classifiable under sub-heading 3003.30, and not patent or proprietary medicaments under sub-heading 3003.10.

Ratio Decidendi: In the absence of a statutory definition, classification of an Ayurvedic medicament under the excise tariff depends on common parlance understanding together with the presence of its ingredients in authoritative Ayurvedic texts; a patented or proprietary formula does not by itself exclude such classification.

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