2007 (8) TMI 514 - AT - Central Excise

Summary

Issues involved: Classification of eranda oil (castor oil) under Central Excise tariff headings 3003.20 and 3003.31.

Summary:
The appeals challenged the order of Commissioner (Appeals) regarding the classification of eranda oil under Central Excise tariff headings. The Commissioner classified the product under heading 3003.20, pertaining to medicaments not exclusively used in certain systems, while the appellants claimed it should be under 3003.31. The dispute revolved around whether the product should be considered Ayurvedic medicine.

The appellant argued that the product's classification as Ayurvedic medicine should be based on common understanding and active ingredients, citing a Supreme Court judgment. They presented evidence including the product label, authoritative texts, and a license recognizing the product as Ayurvedic medicine. The Commissioner noted a change in classification by the appellants in response to duty changes but the appellant provided historical classification approvals.

The Revenue emphasized the exclusivity of the system of medicine under heading 3003.20, contending that the product could be used interchangeably as castor oil. However, the Tribunal considered the interconnectedness of the tariff headings and the recognition of the product as Ayurvedic medicine by authorities. They found that the product should not be excluded from heading 3003.31 based on the word "exclusively" in 3003.20, leading to a harmonious interpretation of the sub-headings.

Ultimately, the Tribunal set aside the impugned order and allowed the appeal, determining the classification of eranda oil as Ayurvedic medicine under heading 3003.31.