TaxTMI 
TaxTMI 
2003 (1) TMI 103
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....]. - The present two appeals have been preferred under Section 35L(b) of the Central Excises & Salt Act, 1944 against the three-member judgment [reported in 1997 (92) E.L.T. 53 (Tribunal)] of the Customs, Excise & Gold (Control) Appellate Tribunal [for short 'CEGAT'], Principal Bench 'C', New Delhi. The Tribunal by majority opinion of two against one held against the appellant that its manufactured product with trade name 'Lip Salve' is classifiable for payment of excise duty under Heading 33.04 of the Central Excise Tariff Act, 1985 [hereinafter referred as 'Act'] as 'a preparation for care of skin' and not as a 'medicament' under Heading 30.03 of the Act. 2.The minority view expressed by one Member of the Tribunal in favour of the appe....
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....his basis, it is contended that the product supplied exclusively to Defence Department for use of military personnel posted in high altitude areas is a 'medicament' and not merely a 'skin care preparation'. It is classifiable as 'medicament' under Chapter 30.03 of the Act. 4.On behalf of the Revenue, the learned standing Counsel submitted that the drug licence obtained by the appellant under the Drugs and Cosmetics Act, 1940, itself mentions that it is a licence for 'ointment and cream for external application as a non-pharmacopoeia item'. In the certificate of the Deputy Director [General] of the Directorate-General of Health Services issued on 9-2-1987, there is a mention that 'Lip Salve' is a protective/preventive cream used for treat....
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....dinarily a medicine is prescribed by a medical practitioner and it is used for a limited time and not every day unless it is so prescribed to deal with a specific disease like diabetes'. 6.Learned Counsel appearing for the appellant placed reliance on decision of this Court in the case of B.P.L Pharmaceuticals Ltd. v. Collector of Central Excise, Vadodara [1995 Supp (3) SCC 1] in which product with trade name 'Selsun' used for treatment of dandruff was held classifiable as a 'medicament' and not a 'cosmetic product' intended for cleansing, beautifying, promoting attractiveness or altering appearance. The learned Counsel highlighted nature of preparation of the product the method in which it supplied with the label, literature, and the ma....
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....product is a protective/preventive preparation for chapping of lips. It is not a curative product may be that incidentally on cracked and chapped lips, it has some curative effect. It is also not denied that the product 'Lip Salve' is not suitable for use only for soldiers operating in high altitude areas but it is of use for every one as protection from dry, cold weather or sun rays. The product, therefore, essentially is protective of skin of lip. It is lip care product and not a 'medicament'. It is neither prescribed by any doctor nor obtainable from the Chemist or Pharmaceutical shops in the market. 8.The appellant seeks classification of the product as a pharmaceutical product under Chapter 30 and as a 'medicament' under Heading 30.....
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....utical or antiseptic constituents, or are held out as having subsidiary curative or prophylactic value. [Underlining for emphasis] Based on Note No. 2, the main emphasis in the arguments advanced on behalf of the appellant is that the product is manufactured especially for defence personnel and packed in simple packing with labels and literatures indicating that it is not sold as cosmetics or toilet preparation. On the other hand on behalf of Revenue, portion of Note No. 2 underlined above has been highlighted to contend that the products classifiable under Chapter 33 include such products under it even though they contain 'subsidiary pharmaceutical or antiseptic constituents or held out as having subsidiary curative or prophylactic v....