Primary use test governs tariff classification of herbal preparations: cosmetic products fall under Chapter 33, not medicaments.

For tariff classification, the decisive test is the product's primary or main use. Herbal preparations marketed and used mainly for skin care, beauty enhancement and hair care were held classifiable under Chapter 33 as cosmetic and toilet preparations, because the presence of Ayurvedic ingredients or manufacture under an Ayurvedic drug licence did not by itself make them medicaments; any therapeutic effect was only incidental. Puma Anti-Dandruff Oil (Dandika) was treated separately on the limited record available and retained its classification as an Ayurvedic medicament.

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Issues: (i) Whether the impugned herbal products, other than Puma Anti-Dandruff Oil (Dandika), are classifiable as Ayurvedic medicaments under Chapter 30 or as cosmetic and toilet preparations under Chapter 33 of the Central Excise Tariff; (ii) whether Puma Anti-Dandruff Oil (Dandika) is classifiable as an Ayurvedic medicament or under Chapter 33.

Issue (i): Whether the impugned herbal products, other than Puma Anti-Dandruff Oil (Dandika), are classifiable as Ayurvedic medicaments under Chapter 30 or as cosmetic and toilet preparations under Chapter 33 of the Central Excise Tariff.

Analysis: A product falls within Chapter 30 only if its main use is therapeutic or prophylactic. Mere presence of Ayurvedic ingredients or manufacture under an Ayurvedic drug licence does not, by itself, make the product a medicament. Chapter 30 expressly excludes preparations of Chapter 33 even if they possess therapeutic or prophylactic properties, while Chapter 33 covers beauty and skin care preparations including products for hair and skin. The labels and consumer material showed that the products were marketed and used for skin care, beauty enhancement, hair care, and similar cosmetic purposes, with any medicinal value being only incidental or subsidiary.

Conclusion: The products, other than Dandika, are not Ayurvedic medicaments and are correctly classifiable under Chapter 33 of the Central Excise Tariff.

Issue (ii): Whether Puma Anti-Dandruff Oil (Dandika) is classifiable as an Ayurvedic medicament or under Chapter 33.

Analysis: The material on record for Dandika stood on a different footing from the other products, as the record contained an opinion that it could be treated as an Ayurvedic drug because of its anti-dandruff activity. On that limited basis, the exclusion applied to the remaining products was not extended to Dandika in the same manner.

Conclusion: Dandika was not disturbed from the classification as an Ayurvedic medicament.

Final Conclusion: The Revenue succeeded in challenging the classification of all the impugned products except Puma Anti-Dandruff Oil (Dandika), which retained its treatment as an Ayurvedic medicament.

Ratio Decidendi: For tariff classification, the decisive test is the primary or main use of the product; where the dominant use is cosmetic or toilet care and any medicinal effect is only subsidiary, the goods fall under Chapter 33 and not Chapter 30, even if they contain Ayurvedic ingredients or are marketed under an Ayurvedic licence.

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