TaxTMI 
TaxTMI 
2021 (12) TMI 267
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....he applicable tax rate on ayurvedic medicine is 12%. 5. As per product label attached with the application, the Himsa Plus Oil is Prop. Ayur. Medicine and is a herbal cool oil for effective relief from- (a) Physical and Mental stress and strain (b) Heating sensation in brain and tension (c) Bodyache and Joint pain (d) Loss of memory (e) Sleeplessness (f) Premature hair fall (g) Dandruff and itching (h) Muscular and nervous strain and pain (i) Headache, Sinus and Migraine (j) Bruises (k) Boil and Pimple (l) Poisonous insect bite. 6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Additional Commissioner, Grade-1, Commercial Tax, Kanpur Zone-Second, Kanpur vide his letter C. No. 14084/Ms. Surya Ayurvadic/2020-21 dated 27.03.2021 has opined that Himsa Plus Oil falls under Chapter Heading 330590 and taxable @ 18% citing as under:- "The taxability of product manufactured by firm is clearly mentioned on notes for Chapter-30 (HSN Classification) As read Cha....
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.... v. 1.5% (Schedule V); and vi. 0.125% (Schedule VI) 12. The Explanation (iii) of the said notification No. 01/2017-Central tax (Rate) dated 28.06.2017 states that "Tariff item", "sub-heading" "heading" and "Chapter" shall mean as specified in the First Schedule to the Customs Tariff Act, 1975 and Explanation (iv) of the said notification states that the rules for the interpretation of the First Schedule to the said Act including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 13. The applicant has submitted that the applicable rate on ayurvedic medicines is 12% and Himsa Plus Oil is a ayurvedic hair oil used for various hair disease and headache. To determine the rate of tax on the products in question we need to examine the relevant competing entries concerning the product in question. The relevant entries of notification No. 01/2017-Central tax (Rate) dated 28.06.2017 are reproduced hereunder: - Schedule II- 6% S.No. Chapter / Heading / Subheading/Tariff Item Description of Goods (1) (2) (3) 62 3003 Medicaments (excluding ....
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....substance used for medical treatment'. As per McMillan Dictionary medicament is 'a substance used for treating an illness or injury'. The American Heritage Medical Dictionary defines it as 'An agent that prompts recovery from injury or ailment. The term therapeutic as defined in the Oxford Dictionary is a treatment designed to help/treat an illness. As per Collins Dictionary, therapeutic treatment is designed to treat an illness or to improve a person's health, rather than to prevent an illness. Similarly, the dictionary meaning of Prophylactic Uses is a substance or device used for preventing disease. In other words, to determine whether or not a product or a formulation is to be labelled as a 'medicament' it is necessary to consider its efficacy in treating or remedying an 'injury' an 'ailment' an 'illness' or a 'disease'. Hence, it becomes imperative to look into the definition of 'injury'. Miller-Keane Encyclopaedia and Dictionary of Medicine, Nursing, and Allied Health, Seventh Edition defines 'injury' as `harm or hurt; usually applied to damage inflicted on the body by an external force'. Again, i....
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....d) Loss of memory (e) Sleeplessness (f) Premature hair fall (g) Dandruff and itching (h) Muscular and nervous strain and pain (i) Headache, Sinus and Migraine (j) Bruises (k) Boil and Pimple (l) Poisonous insect bite. 21. The aforesaid problems (as stated in Para 20) are not considered to be disease or illness, or even injury. Providing relief from aforesaid problems does not amount to treatment of the disease or the illness or the injury of human beings. Further the label of the product Himsa Plus Oil does not contain dosage (or a mention of 'as advised by the physician') which is essentially mentioned on the label of medicaments. The said fact indicates that the said product is not a medicament. 22. We have also gone through the definition of Ayurvedic drugs as explained in Section 3 (a) of The Drugs and Cosmetics Act, 1940 which is as under:- "Ayurvedic, Siddha or Unani drug includes all medicines intended for internal or external use for or in the diagnosis, treatment, mitigation or prevention of disease or disorders in human beings or animals and manufactured exclusively in accordanc....