2002 (10) TMI 471 - AT - Central Excise

Summary

Issues: Classification of Tel Rahat Rooh under Central Excise Tariff Act - Sub-heading 3003.30 or 3305.10.

Analysis:
1. The appeal filed by Revenue raised the issue of whether Tel Rahat Rooh manufactured by M/s. Harbans Ram Bhagwan Das Ayurvedic Sansthan (P) Ltd. should be classified under sub-heading 3003.30 as claimed by the Respondents or under sub-heading 3305.10 as claimed by the Revenue.

2. The Respondents did not appear for the hearing, and the Asst. Commissioner initially classified the product under sub-heading 3305.10, but the Commissioner (Appeals) allowed the appeal of the Respondents based on the herbal and ayurvedic nature of the ingredients, the manufacturing process, and the product being under a Drug license. The Revenue argued that the product's daily use, lack of medical prescription, and the nature of ingredients should classify it under sub-heading 3305.10.

3. The Tribunal considered the Supreme Court's decision in the case of Shree Baidyanath Ayurved Bhawan Ltd., emphasizing that medicines are usually prescribed by medical practitioners for a limited time. The Tribunal noted the absence of evidence that Tel Rahat Rooh was used on medical advice or cured specific diseases mentioned on the label. Relying on previous decisions, the Tribunal held that mere claims on the label do not make a product an Ayurvedic medicament, and the product should be classified under Heading 33.05 of the Central Excise Tariff.

4. Based on the established legal principles and precedents, the Tribunal set aside the impugned order and classified Tel Rahat Rooh under Heading 33.05. The Tribunal emphasized the need for evidence of medical prescription and disease treatment for classification as an Ayurvedic medicament. The Cross Objection was also disposed of due to the lack of additional arguments.

In conclusion, the judgment clarified the classification of Tel Rahat Rooh under the Central Excise Tariff Act, highlighting the importance of medical prescription and disease treatment evidence for products claiming to be Ayurvedic medicaments.