2016 (11) TMI 1274 - AT - Central Excise

Classification of goods - Cetraben Cream - whether classified as medicament or as cosmetics? - Held that - the said product would merit classification under chapter 30 by recording that the ingredients used in the manufacturing of the product are mentioned in different pharmacopoeia and letters of medical practitioners based in India and abroad indicate the product in question is a medicament - appeal allowed.

Summary

Issues: Classification of product as medicament or cosmetics.

In this case, the appellant, engaged in the manufacture of excisable goods, claimed a product, "Cetraben Cream," as a medicament, while the Revenue contended it should be classified as cosmetics. The adjudicating authority classified the product as cosmetics, leading to a dispute. The appellant argued that the product was classified as a medicament in a previous case, supported by a letter from the Drug Control of India. The appellant cited various Supreme Court judgments to support their claim. The Departmental Representative argued that the product should be classified based on consumer usage, asserting it was used as a cosmetic preparation. The Tribunal noted that the first appellate authority had previously classified the product as a medicament in the appellant's case, a decision that had been accepted. The Tribunal also referenced a case involving Hindustan Lever Ltd, where the product was classified under chapter 30 as a medicament. The Tribunal held that based on the authoritative judicial pronouncements and the previous classification of the product as a medicament, the impugned order was unsustainable and set it aside, allowing the appeal.

This judgment primarily revolves around the classification of the product, "Cetraben Cream," as either a medicament or a cosmetic. The appellant claimed it to be a medicament, while the Revenue argued for its classification as cosmetics. The key issue was whether the product should be classified based on its healing properties or consumer usage. The Tribunal considered the previous classification in the appellant's case, supported by the Drug Control of India's letter, and various Supreme Court judgments favoring classification as a medicament. The Departmental Representative's argument based on consumer usage was countered by the Tribunal's reference to a previous case involving Hindustan Lever Ltd, where a similar product was classified as a medicament under chapter 30. The Tribunal ultimately relied on the previous classification and authoritative judicial pronouncements to set aside the impugned order and allow the appeal.