TaxTMI 
TaxTMI 
2018 (3) TMI 17
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....d Veterinary medicines falling under Chapter heading 3003 to 3006 to the Central Excise Tariff. The dispute in the present case is with reference to two products manufactured by the appellant. i. "Rovan Poshak Tail" ii. "Rooh-e-Gulab Sharbat" 2. The respondent classified both items under Tariff Item 3004 9011, as medicaments and availed the benefit of area based exemption under Notification No. 49/2003-CE dated 10/06/2003. The Department was of the view that the two products "sharbat" and "tail" were wrongly classified by the respondent under Chapter 30 as medicaments. The show cause notices were issued alleging that the "sharbat" is rightly classifiable under CETH 21069011 as food preparations and "tail", under 3305 90....
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....utic or prophylactic properties will remain classified in Chapter 33. Accordingly, the "sharbat" as well as "tail" will not be classifiable under Chapter 30 but will fall in Chapter 21 and Chapter 33 respectively. 5. The Ld. Advocate representing the respondent justified the impugned order. His arguments are summarized below:- i. The Ld. Commissioner (Appeals) has painstakingly gone through all the requirements which are essential for holding that the products in question were medicaments, classifiable under CETH 3004. ii. The impugned order has been passed only after the Ld. Commissioner (Appeals) has considered the CBEC Circular No. 25/91 as well as 360/76/1997 and also after considering the products against the ya....
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....ve therapeutic or prophylactic usages. But the view taken by the Revenue is that the "tail" is nothing but a cosmetic which is meant for care of the hair and merits classification under Chapter 33. In respect of the "Sharbat" the submission of the Revenue is that it contains fruit juice and a high dose of sugar and hence is nothing but non-alcoholic sweetened beverage classifiable under CETH 2106. 9. Both the products under dispute have medicinal properties as well as other common place properties. The classification of such items is required to be made in the light of the pronouncement of Hon'ble Supreme Court in the case of Naturalle Health Products (P) Ltd. as well as Puma Ayurvedic Herbal (P) Ltd. (Supra). In respect of similar produ....
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....ould merit classification as an Ayurvedic medicine, if in the common parlance, it is known as an Ayurvedic medicines. It has also been observed that the aforesaid two tests have been upheld by Hon'ble Supreme Court in the case of Civil Appeal No. 2127 of 1988-C.C.E., Hyderabad v. M/s. Richardson Hindustan Ltd. - Supreme Court's Order dated 10.01.1989. 4. The Government have accepted the above referred two tests for determining the classification of the products claimed to be as Ayurvedic medicine (excluding herbal or ayurvedic cosmetic) and these may accordingly, be kept in view while deciding similar cases". Thus, the Board also has also accepted twin tests laid down by the Hon'ble Tribunal, as affirmed by the Hon'ble Supreme Cour....