Lice treatment product classified as medicament under tariff rules, not as an insecticide, despite insecticide registration.

A preparation used to kill head lice was treated as a medicament because lice infestation was regarded as pediculosis, a disease, and Note 2(i) to Chapter 30 supported classification under sub-heading 3003.10. Its content of malathion and registration under the Insecticides Act did not control excise classification, since tariff treatment depends on the Central Excise Tariff scheme. Note 1(c) to Chapter 38 excluded medicaments from that chapter, and the earlier Pharmasia ruling was followed. The product was therefore classifiable as a medicament, not as an insecticide.

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Issues: Whether the product "Licel", used for killing head lice, is classifiable as a medicament under sub-heading 3003.10 or as an insecticide under sub-heading 3808.10 of the Central Excise Tariff Act, 1985.

Analysis: The product was found to be a lice killer meant to treat infestation of lice, and infestation of lice on the head was treated as pediculosis, i.e. a disease. On that basis, and applying Note 2(i) to Chapter 30, the product fell within the category of medicaments. The fact that it contained malathion and was registered under the Insecticides Act, 1968 did not alter excise classification, because classification under the tariff depends on the tariff scheme and not on registration under another statute. Note 1(c) to Chapter 38 excluded medicaments from Chapter 38. The earlier classification ruling in Pharmasia was followed.

Conclusion: The product was correctly classifiable as a medicament under sub-heading 3003.10 and not as an insecticide under sub-heading 3808.10. The appeal was rejected.

Ratio Decidendi: A preparation used to treat lice infestation, treated as pediculosis, is classifiable as a medicament under Chapter 30, and once so classified it stands excluded from Chapter 38 by the chapter note.

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