Ayurvedic medicine exemption survives label marks where products are sold under authoritative text names and duty demand fails.

Ayurvedic medicaments do not lose exemption merely because the manufacturer's mark, logo, monogram or symbol appears on the label, provided the goods are sold under the name specified in authoritative ayurvedic texts. The Board's circular was read as preserving exemption in such cases, and the Tribunal noted that the Government did not intend to levy duty on these medicines. On that basis, the duty demand was found unsustainable and the assessee remained entitled to the exemption.

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Issues: Whether ayurvedic medicines remain eligible for exemption when the manufacturer's mark, logo, monogram or symbol appears on the labels, and whether the duty demand on that basis was sustainable.

Analysis: The Tribunal held that the appellants could not be singled out for different treatment. The Board's circular clarified that exemption for ayurvedic medicaments would remain available even if the manufacturer's mark, logo, monogram or symbol was also shown on the labels, so long as the medicines were sold under the name specified in the authoritative ayurvedic texts. The Tribunal also noted that the Government's intention was not to levy duty on such medicines and that other manufacturers had not been subjected to such duty.

Conclusion: The duty demand was not sustainable and the appeal was allowed in favour of the assessee.

Final Conclusion: Ayurvedic medicines described according to authoritative texts do not lose the benefit of exemption merely because the manufacturer's trade mark or similar identifying mark is also displayed on the labels.

Ratio Decidendi: The presence of a manufacturer's mark, logo, monogram or symbol on the label does not defeat exemption for ayurvedic medicaments when they are otherwise sold under the name specified in authoritative ayurvedic texts.

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