TaxTMI 
TaxTMI 
2007 (9) TMI 36
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....3 are as follows: (a) The appellant is engaged in the manufacture of products described "Test-up, Coolex, Cold-drops". (b) The appellant claimed that these products are ayurvedic medicines containing ayurvedic ingredients, classifiable •under Heading 3003.30 and are frilly exempted under Notification No. 31/89-C.E., dated 1-3-1989. (c) On the basis of investigation the department issued show cause notice. Proposing that these products are confectionary falling under sub-heading 1704.90 and demanding duty of Rs. 12,02,862 relating to the period from November 1985 to October 1990. (d) The Commissioner confirmed the classification under Chapter Heading 1704.90. He, however, dropped the proceedings for demand of duty holding that the same....
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....CE, Calcutta v. Sharma Chemical Works. (b) 2006 (196) E.L.T. 3 (S.C.) - Puma Ayurvedic Herbal (P) Ltd. v. CCE, Nagpur. (c) 2003 (158) E.L.T. 257 (S.C.) - Naturalle Health Products (P) Ltd. v. CCE, Hyderabad. (d) 2004 (174) E.L.T. 409 - Procter & Gamble India Ltd. v. CCE, Noida. (e) 2006 (202) E.L.T. 787 - CCE, Aurangabad v. Balsara Herbal Products Ltd. 6. The learned SDR reiterates the findings of the Commissioner in his order in adjudication to hold that the products are confectionary falling under Heading 1704.90. 7.1 We have carefully considered the submissions from both sides. On the issue of classification the Commissioner has held against the appellant whereas the Commissioner (Appeals) has held it in favour of the party. 7.2 T....
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....tic products are meant to improve appearance of a person, that is, they enhance beauty. Whereas a medicinal product or a medicament is meant to treat some medical condition. It may happen that while treating a particular medical problem, after the problem is cured, the appearance of the person concerned may improve. What is to be seen is the primary use of the product. To illustrate, a particular Ayurvedic product may be used for treating baldness. Baldness is a medical problem. By use of the product if a person is able to grow hair on his head, his ailment of baldness is cured and the person's appearance may improve The product used for the purpose cannot be described as cosmetic simply because it has ultimately led to improvement in appea....