Ayurvedic medicament classification upheld where recognised ingredients and common parlance supported treatment, nullifying the duty demand.

'Sanjivini Strong Balm' was held classifiable as an ayurvedic medicament under SH 3003.30 because the presence of pharmaceutical-grade ingredients did not by itself exclude ayurvedic treatment where those ingredients were recognised in ayurvedic parlance. The absence of a specific formula in authoritative texts was not decisive, and common parlance also supported the classification. Once that entry applied, the relevant tariff rate was nil during the period in question, so the consequential excise duty demand could not survive independently and was set aside with relief to the assessee.

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Issues: (i) Whether 'Sanjivini Strong Balm' was classifiable as an ayurvedic medicament under SH 3003.30 of the Central Excise Tariff Act, 1985. (ii) Whether any duty demand could survive if the product was so classified.

Issue (i): Whether 'Sanjivini Strong Balm' was classifiable as an ayurvedic medicament under SH 3003.30 of the Central Excise Tariff Act, 1985.

Analysis: The product contained methyl salicylate, menthol and paraffin wax. The lower authorities had relied on the fact that the formula was not found in authoritative books, but the controlling principle is that the presence of pharmaceutical-grade ingredients does not by itself exclude ayurvedic classification if the ingredients are recognised in ayurvedic parlance. It was also not necessary that the preparation must conform to a specific formula in an authoritative text; it was sufficient that its ingredients were mentioned in ayurvedic books and the common parlance test supported such treatment.

Conclusion: 'Sanjivini Strong Balm' was correctly classifiable as an ayurvedic medicament under SH 3003.30 and the finding against the assessee was unsustainable.

Issue (ii): Whether any duty demand could survive if the product was so classified.

Analysis: Once the product was held classifiable under SH 3003.30, the applicable tariff entry attracted nil rate of duty during the relevant period. The demand was only consequential to the earlier classification under SH 3003.19 and could not stand independently.

Conclusion: No excise duty demand survived against the assessee.

Final Conclusion: The classification dispute and the consequential duty demand were decided in favour of the assessee, resulting in setting aside of the impugned orders and grant of consequential relief.

Ratio Decidendi: A product remains eligible for ayurvedic medicament classification if its ingredients are recognised in ayurvedic parlance, and pharmaceutical-grade processing or the absence of a specific formula in authoritative texts does not by itself disqualify it.

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