2007 (12) TMI 39 - AT - Central Excise

Exemption sought on Lidocaine Tropical Aerosol USP bearing different brand names like Climax, Numit Spray and Stud claiming the goods as anesthetics only active ingredient of the product is Lidocaine which is an anesthetic - as per encyclopedia Lidocaine is anesthetic used to relieve itching, burning and pain from skin inflammation exemption available it is not relevant that impugned item ia also used as sexual stimulants.

Summary

Issues:
Exemption under Notification No. 6/94 for Lidocaine Tropical Aerosol USP as anesthetics vs. sexual stimulants.

Analysis:
1. The case involves a dispute over the classification of Lidocaine Tropical Aerosol USP as anesthetics or sexual stimulants for the purpose of claiming exemption under Notification No. 6/94. The Assistant Commissioner denied the exemption, considering the product as sexual stimulants rather than anesthetics used in hospitals for surgery. The respondents argued that Lidocaine, the active ingredient, desensitizes specific body parts, prolonging ejaculation, thus qualifying as local anesthetics.

2. The Revenue contended that anesthetics induce loss of sensation, primarily used in medical procedures. They argued that the product in question, marketed as a delay spray for men, aimed at enhancing sensitivity threshold in sexual activities, not for medical purposes. The Revenue highlighted the distinction between traditional anesthesia and Lidocaine's topical use for skin conditions, dental anesthesia, and minor surgery.

3. The respondents' advocate emphasized Lidocaine's anesthetic properties, supported by a medical examiner's report confirming Lidocaine as the active ingredient with anesthetic properties. The report stated that as long as Lidocaine desensitizes, regardless of its use in surgery or sexual activities, it should be considered anesthetics under Chapter 30 of CET.

4. The Tribunal analyzed the evidence and definitions of anesthetics from Wikipedia, establishing that Lidocaine, as the sole active ingredient, qualifies as an anesthetic. Wikipedia described anesthetics as substances blocking pain and other sensations, including Lidocaine as a common local anesthetic for relieving pain and skin inflammations. The Tribunal concluded that Lidocaine's anesthetic properties extended beyond surgical use to include pain relief, itching, and skin inflammations, thus entitling it to exemption under Notification No. 6/94.

5. Ultimately, the Tribunal rejected the Revenue's appeal, finding that Lidocaine's anesthetic properties, as the primary ingredient in the product, warranted its classification as anesthetics deserving of exemption. The judgment clarified that anesthetics' scope encompassed pain relief and skin conditions, not limited to surgical settings, thereby upholding the Commissioner (Appeals)' decision in favor of the respondents.