AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2003 (1) TMI 171
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....how cause notice; that for example Floral Body Gel was proposed to be classified under sub-heading 3304.00 but it had been classified under sub-heading 3307.39 of the Tariff; that the classification of any product can not be determined under a new Heading without putting the manufacturer on Notice. He also mentioned that the Department has confirmed the classification of products "Strike" and "Keratene" (Serial Nos. 1 and 20) as claimed by them under sub-heading 3003.39 of the Tariff. 3.1 The learned Advocate submitted that the Appellants have been granted manufacturing licence of Ayurvedic Drug by the Director of Ayurveda, Harayana after they submitted the complete details of ingredients, their reference in authoritative text book, formulations and other particulars; that sub-heading 3003.31 of the Tariff covers Classic Ayurvedic Medicaments that is the medicaments manufactured exclusively in accordance with the formulae described in authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 sold under name as specified under such books; that sub-heading 3003.39 covers all other Ayurvedic Medicaments manufactured otherwise that is having ingredients ....
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....bsp; Ingredients : Aam 4.2%, Palash 3.8%, Kali Mirch 1.35%, Gulab 4.5%. Nimbic Amla 1.0%, Multani Mitti 10.6%, Shankh Bhasm 2.9%, Haldi 2.8%, Lavang Tail 1.5%, Parishrut Jal (To make 100%) Properties : This has antiseptic healing properties for acne skin. It helps to remove epidermal impurities and deep seated pollutants which cause pimples and acne. Use : Use till the symptoms are cured. (iv) FOREST FLOWER : (HAIR REJUVENATOR OIL) Ingredients : Bhringraj 2.65%, Brahmi 1.84%, Jatamansi 2.7%, Japa Pushp 3.15%, Nilani 2.9%, Akhrot 2.95%, Amla 3.48%, Ghrit Kumari 1.65%, Maju Phal 1.75%, Badam Tail 1.0%, Narial Tail 65.0%, Til Tail 34%, Palash 2.70%. Properties : A non-greasy hair tonic effectively controls dandruff, hair loss and brittleness of hair. This helps to improve the strength and texture of hair. Makes hair more manageable. Use : Can be used daily....
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....icine; that these tests had also been upheld by the Supreme Court in Civil Appeal No. 2127 of 1988 [1989 (42) E.L.T. A100 (S.C.)] - CCE v. M/s. Richardson Hindustan Ltd. The learned Counsel thus contended that even as per Department's own understanding such items were being classified as Ayurvedic medicaments; that the said circular was suppressed vide Circular No. 360/76/97-CX, dated 3-12-97 only; that even if it is held that the impugned products are not "Ayurvedic Medicines" the demand up to 2-12-1997 is liable to be set aside. He further mentioned that extended limitation could not be invoked as they were under a bona fide belief that their products were ayurvedic medicine; that their two products had also been classified as Ayurvedic medicines by the Adjudicating Authority; that classification of a product is a matter of belief and their bona fide belief was based on the facts that they possessed a Drug License from the competent authority, manufactured goods as per formulations mentioned in the authoritative text books and the Circular dated 3-10-1991; that the confusion was also prevalent which is evident from Circular No. 333/49/97-CX, dated 10-9-1997. Reliance has also bee....
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.... products from the cosmetics character. 4.3 The learned DR, further mentioned that "Comal" is supposed to cure the problem of cracked feet; that cracked feet is not disease; that the impugned product merely moistens the foot to prevent it from cracking and it is like Vaseline with a view to soften the feet, that as such "Comal" is not a medicine and is classifiable as a pedicure preparation under Heading 33.04 of the Tariff; that as per literature, "La-faire" minimizes dark patches and lines on the skin thereby improving complexion; that the label describes this product as an anti-blemish fairness lotion and regular use ensures clear and fairer look; that this product is for regular use, that as such "La-faire" is also a skin care item and not treating any disease; that this is, therefore, appropriately classifiable under Heading 33.04 of the Tariff. He, further, contended that "Turmeric 'N' Clove" as per literature, has been described as an antiseptic skin treatment paste which also helps to remove skin impurities which cause pimples and acne; that this product does not claim to be a treatment for pimples or acne and can not, therefore, be treated as a medicine; that "Turmeric 'N....
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....submissions of both the sides. Note 2 to Chapter 30 of the Schedule to the Central Excise Tariff Act defines Medicaments as under :- "2….For the purposes of heading No. 30.03 (i) 'Medicaments', means goods (other than foods or beverages such as dietetic, diabetic or fortified foods, tonic beverages) not falling within heading No. 30.02 or 30.04 which are either :- (a) Products comprising two or more constituents which have been mixed or compounded together for therapeutic or prophylactic uses, or (b) Unmixed products suitable for such uses put up on measured doses or in packings for retail sale for use in hospitals." It is thus apparent from Note 2 to Chapter 30, which deals with "Pharmaceutical Products", that the products to be considered as medicaments, must have therapeutic or prophylactic uses. Merely because of the fact that some ingredients mentioned in the Authoritative text books on Ayurveda have been used in the manufacture of a product, would not make the product a 'medicament'. The product should be mainly for therapeutic or prophylactic uses. This view is strengthened from Note 1(d) to Chapter 30 which provides that Chapter 30 does not cover "Preparations of Cha....
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....anath Ayurved Bhavan Ltd. v. CCE, Nagpur, 1996 (83) E.L.T. 492 (S.C.) = 1995 (10) RLT 327 (S.C.), the scientific and technical meanings would not advance the case of the appellants if the same runs counter to how the product is considered in popular parlance. This is also to be seen as to whether the product is having therapeutic or prophylactic use as the main use or subsidiary use. The product 'Comal' heals the cracked feet. The product also makes the same claim. As 'Comal' is curing cracked feet, its main use is as medicine and can not be classified under Heading 33.04 which applies to "Beauty or make-up preparations and preparations for the care of the skin (other than medicaments)......." We observe that Heading 34.04 specifically excludes medicine from its purview. Accordingly, we hold that Comal is an Ayurvedic medicine classifiable under Chapter 30 of the Tariff. Similarly "Turmeric 'N' Clove" is also not classifiable under Heading 33.04 as the product is used for 'acne' and 'pimples' and is classifiable as Ayurvedic Medicine under Chapter 30. The learned Advocate has mentioned that ''Basil 'N' Neem" is used on scalp and hair to control dandruff and hair fall. In BPL Pharma....