2016 (3) TMI 350

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....ure of various Ayurvedic medicines like Neem, Boswellia, Serrata, Ashwagandha, Gymnema, etc. They classified these items under tariff heading 3003.31 and claimed full exemption. Revenue felt that these products are rightly classifiable under tariff heading 3003.39 and liable to duty as "Patent or Proprietary Medicament". The reason for such claim is that these products carried trade name "Sivananda" and "Om" and hence appeared to have been sold as P or P medicines. 2. Proceeding initiated against the appellant/assessee for the period 2002-03 to 28.11.2004 resulted in order dated 30.03.2005. The original authority classified these products under tariff heading 3003.39 and confirmed duty liability and imposed equal amount of penalty also. ....

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.... E.L.T. 211 (Tri.-Del.) and Hon'ble Supreme Court's decision in Astar Pharmaceuticals (P) Ltd. - 1995 (75) E.L.T. 214 (S.C.) 5. Ld. A.R. submitted that apart from name of the medicines the product labels clearly mentioned the trade name "Sivananda" with a registered design of "Om". Such trade mark is meant to link the product with the company and the products are to be considered as proprietary medicines. 6. We have heard both the sides and examined appeal records. The point for decision in these appeals is that the Ayurvedic medicines manufactured by the appellant / assessee are to be classified either under Tariff Heading 3003.31 or 3003.39. The admitted facts of the case are that the appellant/ assessee are manufacturing these vari....

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....edicaments classifiable under residual Heading 3003.39. We find that there is no such condition of the product to be sold exclusively in the name mentioned in the textbooks. Heading 3003.31 stipulates that medicaments to be manufactured exclusively in accordance with the formulae described in authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 etc., and sold under the name as specified in such books. There is no dispute that the impugned goods are manufactured in accordance with the formulae of the authoritative text and name as mentioned in the text are mentioned in the packing of the product. We have also perused copies of labels used for marketing these medicaments. The mention of the house name/ bran....