TaxTMI 
TaxTMI 
2008 (8) TMI 179
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....s of this Tribunal. The issue involved is the correct classification of a product named 'Face to Face' (FTF, for short) a cream/lotion manufactured by M/s. Dollar Company Private Ltd. The assessee claims the product to be a medicament used for treating skin diseases. As an ayurvedic medicine, the item falls under Chapter 3003.30 of the Central Excise Tariff Act. The department is of the view that the subject product is a cosmetic falling under CSH 3304. The original authority had found that 'Face to Face' was a cosmetic and confirmed duty demand of (i) Rs. 71,86,935/- for the period 10-1-94 to 30-9-97 and (ii) Rs. 75,66,898/- for the period 10/97 to 3/03. 2. Appeal No. E/1018/2000 is by the Revenue against Order-in-Appeal No. 54/2000 (M-....
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....arted in 30 cases for treatment of Hypo pigmentation and Hyper pigmentation. The Commissioner observed that the report signed by the Medical Officer of the said hospital was obviously indicative of the impugned product having been 'prescribed' for patients affected with the said skin afflictions. The assessee had produced before the original authority certificates obtained from 143 medical practitioners of different regions in the country. They had indicated that 'Face to Face' had been prescribed by doctors for pimples/acne in 163 patients, dry skin in 113 cases, sun burn in 80 cases, leucoderma in 79 cases, bindi rash in 85 cases, hyper pigmentation in 77 cases, hypo pigmentation in 77 cases and contact dermatitis in 82 cases. From the re....
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.... ayurvedic medicine as per the authoritative texts on ayurveda. It was an ayurvedic product though not a classical one. He noted that the original authority had found that in the literature published by the assessee for marketing the product it was printed in bold letters, "Face to Face, the ayurvedic way to clean, fresh, glowing skin". The Commissioner found that in the inside wrapper, under indications it was printed: "regular application of face-to-face will heal and cure pimples and acne, clear pimple scars and bring back the natural smoothness and glossiness of your complexion." The printed literature of the impugned product had held out the promise to "heal and cure" as distinguished from, say "enhance complexion". 6. He found that....
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....ted that 30 cases were studied and in some cases patients experienced moderate improvement in their skin condition. 9. As regards the popular perception of the product, department has not established that Face to Face is known as a cosmetic. The literature on the product issued by the appellants claimed that Face to Face rendered cure for skin afflictions such as acne, pimple, dry skin, sun burn and white patches. The fact that the appellant manufactures the subject product under a drug licence issued by the competent authority (State Drugs Controller of Tamil Nadu) also supports the finding that FTF is an ayurvedic medicine. 10. We find that the following case law dealt with classification of products involving similar dispute as in ....
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.... as follows: "It could not be denied that all the ingredients used in Banphool Oil are those which are set out in the ayurveda text books. Of course the formula may not be as per the text books but a medicament can also be under a patented or proprietary formula. The main criteria for determining classification is normally the use it is put to by the customers who use it. The burden of proving that Banphool Oil is understood by the customers as hair oil was on the revenue. This burden is not discharged as no such proof is adduced. On the contrary we find that the oil can be used for treatment of headache, eye problem, night blindness, reeling head, weak memory, hysteria, amnesia, blood pressure, insomnia etc. The dosages required a....