2003 (7) TMI 429 - AT - Central Excise

Summary

Issues: Classification of wanish skin cream/lotion as ayurvedic medicine or cosmetic under Chapter 30 of the Central Excise Tariff.

In this case, the Revenue appealed against the order-in-appeal where the Commissioner (Appeals) classified wanish skin cream/lotion as an ayurvedic medicine. The Revenue argued that the product is merely a skin cream for cosmetic purposes and not a medicament under Chapter 30 of the Central Excise Tariff. They contended that the product is used to improve skin condition, not to treat diseases, and can be used without a medical prescription. On the other hand, the Respondents asserted that wanish skin cream/lotion is made from ingredients mentioned in an ayurvedic text and is sold with prescriptions from medical practitioners for treating pregnancy stretch marks. They provided evidence supporting the medicinal use of the product. The Respondents relied on a previous decision by the Delhi High Court regarding the classification of a similar product as a medicament under Chapter 30.

The Tribunal found that the evidence presented by the Respondents, showing the product being sold with medical prescriptions for treating pregnancy stretch marks, was not contested by the Revenue. The Tribunal noted that the Revenue failed to provide evidence to support their claim that the product is a cosmetic rather than an ayurvedic medicine. Furthermore, the Tribunal referenced the Delhi High Court decision regarding a similar product, emphasizing that products used for specific medical purposes can be classified as medicaments under Chapter 30. The Tribunal concluded that the product in question, wanish skin cream/lotion, satisfied the common parlance test and was used for treating a specific condition, similar to the product in the Delhi High Court case. Therefore, the Tribunal upheld the order-in-appeal classifying wanish skin cream/lotion as an ayurvedic medicine under Chapter 30 of the Central Excise Tariff, dismissing the Revenue's appeal.