Medicament classification for skin treatment product upheld over cosmetic label despite sunscreen ingredient

Melalite Cream was treated as a patent and proprietary medicament because its composition, literature, drug licence and affidavits showed use in treating hyperpigmentation and prescription by doctors. The presence of a sunscreen ingredient did not alter its essential character, since an ancillary protective feature does not convert a therapeutic product into a cosmetic or toilet preparation. On that basis, the approved classification under Tariff Item 14E and later Heading 3003.19 was upheld, and the revenue's challenge failed.

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Issues: Whether Melalite Cream was classifiable as a patent and proprietary medicament or as a cosmetic or toilet preparation under the Central Excise Tariff.

Analysis: The composition, literature, pamphlet, drug licence, and affidavits showed that the product was used for treatment of hyperpigmentation and was prescribed by doctors. The presence of a sunscreen ingredient did not change the essential character of the product, because a product primarily used for curing a skin condition does not become a cosmetic merely because it has an ancillary protective or pleasant-use feature. The earlier and later tariff entries were applied consistently with that characterisation, and the department did not displace the approved classification.

Conclusion: Melalite Cream was a medical preparation and not a cosmetic or toilet preparation, and its classification under Tariff Item 14E and later under Heading 3003.19 was in law. The revenue's appeal failed.

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