Tariff classification by essential character places gulkand under food heading, not medicament, due to its common market use.

Gulkand was classified by examining its essential character, common market understanding, and ordinary use. Because it was sold in retail packs as a sweet preparation used with paan, and not as a product ordinarily prescribed for treatment of disease, it did not qualify as an Ayurvedic medicine or medicament. The product was therefore held classifiable under Chapter Heading 2001 as a food product, not under Chapter Heading 3003, and the Revenue's challenge to the classification failed.

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Issues: Whether gulkand is classifiable under Chapter Heading 3003 as a medicament or under Chapter Heading 2001 as a food product.

Analysis: The product was examined on its actual use and character. It was found to be sold as gulkand in retail packs, prepared from rose petals with sugar and a negligible preservative, and used commonly as a sweetener with paan rather than as a product ordinarily prescribed for treatment of disease. The Tribunal applied the accepted classification approach based on the manner in which the goods are understood and used in the market, and held that the material did not support treatment of the product as an Ayurvedic medicine or medicament.

Conclusion: Gulkand was held classifiable under Chapter Heading 2001 and not under Chapter Heading 3003, in favour of the assessee.

Final Conclusion: The Revenue's challenge to the classification failed, and the order classifying the product as a food item was sustained.

Ratio Decidendi: For tariff classification, the determining factor is the product's essential character and common market understanding, and a product used ordinarily as food or a household consumable is not a medicament merely because it has some traditional or incidental therapeutic association.

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