2003 (7) TMI 416 - AT - Central Excise

Summary

Issues: Classification of the product 'Zulamla' under the Central Excise Tariff Act - whether under sub-heading 3003.39 as confirmed by the Commissioner (Appeals) or under sub-heading No. 3305.99 as claimed by the Department.

Analysis:
1. The appeal revolves around the classification of 'Zulamla' manufactured by M/s. Hamdard (Wakf) Laboratories. The key contention is whether the product should be classified under sub-heading 3003.39 or sub-heading No. 3305.99 of the Central Excise Tariff Act.

2. The learned SDR argued that Note 1(d) to Chapter 30 excludes preparations of Chapter 33, emphasizing that the product is a preparation for use on hair and thus should be classified under Heading 33.05 of the Tariff. The Commissioner (Appeals) was criticized for not providing technical literature supporting the classification of 'Zulamla' as a medicament.

3. On the contrary, the respondent's advocate contended that 'Zulamla' is an ayurvedic medicament supported by the Indian Materia Medica. The product's usage includes treating dandruff, itching sensations, and promoting natural hair growth. The Asstt. Drug Controller certified 'Zulamla' as an Ayurvedic drug after clinical trials. Reference was made to a Tribunal decision classifying a similar product as an Ayurvedic medicament under Heading 30.03.

4. The Tribunal analyzed the ingredients of 'Zulamla' and found them to have medicinal properties effective in curing scalp ailments. The Asstt. Commissioner determined that the product is a medicament, not cosmetic. The Commissioner (Appeals) upheld this classification based on therapeutic values and medicinal usage. The Tribunal noted the absence of rebuttal by the Revenue regarding the authoritative texts mentioning the ingredients. Citing precedents, including a Supreme Court decision, the Tribunal rejected the Revenue's appeal, emphasizing the product's medicinal nature and usage for scalp ailments.

In conclusion, the Tribunal affirmed the classification of 'Zulamla' as a medicament under the Central Excise Tariff Act, rejecting the Revenue's appeal due to the product's therapeutic properties and medicinal usage supported by authoritative texts and previous legal precedents.