2007 (2) TMI 573 - AT - Central Excise

Summary

Issues involved: Classification of product "Rootz Oil" as Hair Oil or Ayurvedic medicine u/s Central Excise Tariff.

Summary:
The appeal by the Revenue challenges the classification of "Rootz Oil" by the Commissioner as Ayurvedic medicine instead of Hair Oil under the Central Excise Tariff. The Commissioner accepted the assessee's claim based on various factors, leading to the Revenue's appeal.

The assessee's submissions highlighted in the impugned order emphasized the medicinal properties of "Rootz Oil," including its formulation with Ayurvedic herbs, therapeutic value, prescription by physicians, certification as an effective Ayurvedic medicine, and sale in medical stores. The product was manufactured under a license from the Food & Drug Authorities and met the requirements of the Drugs and Cosmetics Act, 1940.

The Tribunal, considering the facts, the Larger Bench decision in Himtaj Ayurvedic Udyog Kendra case, and the Supreme Court's ruling in Sharma Chemicals case, upheld the classification of "Rootz Oil" as Ayurvedic medicine. The product's formulation to treat various hair diseases and its therapeutic value supported this classification, despite the Revenue's argument regarding the absence of specific dosage directions by physicians.

Ultimately, the Tribunal rejected the Revenue's appeal, affirming the Commissioner's classification of "Rootz Oil" as Ayurvedic medicine under the Central Excise Tariff.

(Operative part pronounced in the Open Court.)