2022 (8) TMI 558 - AT - Customs

Classification of imported goods - Axe Brand Universal Oil - to be classified under CTH 30049011 or under CTH 33079090? - HELD THAT - The ingredients of Axe oil are printed each side of the box of Axe oil. The active compositions of the oil are Pudhina ka Phool, Niligiri ka Tel, Gandhara tel, Karpoor. The relevant extract of the page from the Ayurvedic Pharmocopia has been produced by the respondent. It shows that pudhina has therapeutic use and is used in the treatment of JIRNA JVARA (fever), Sula, Agnimandhya etc. Similarly, Niligiri tel or eucalyptus has therapeutic properties and is used in treatment of sula, agnimandhya (digestive impairment), swasa (dyspnoea, astma) etc. Similar goods in the nature of Amrutanjan, Vicks, Tiger Balm have been held to be classifiable under Chapter 30 as seen from the decisions relied by the learned counsel for the respondent - The Hon'ble Supreme Court in the case of AMRUTANJAN LTD. VERSUS COLLECTOR OF CENTRAL EXCISE 1995 (3) TMI 97 - SUPREME COURT has held that Having regard to the evidence, we are inclined to hold that the articles afore-mentioned were articles known both to ayurvedic and western sciences and were refined for use in medicaments. Since they were known to ayurveda, their use in the making of the balm did not, by itself, make the balm a non-ayurvedic product. Appeal dismissed.

Summary

Issues: Classification of "Axe Brand Universal Oil" under Chapter 30 or Chapter 33

Classification Issue Analysis:
The appeal was filed by the department challenging the reclassification of "Axe Brand Universal Oil" by the Commissioner of Customs (Appeals) under CTH 30049011. The department contended that the goods should be classified under Chapter 33, while the importer argued for classification under Chapter 30 based on therapeutic and prophylactic properties. The Commissioner (Appeals) upheld the importer's classification and also held that goods above 10 ml should be assessed under section 4A of the Central Excise Act, 1944. The department challenged only the classification issue, arguing that Chapter 33 should apply. The appellant's representative highlighted that the test report was inconclusive and that Chapter 33 covers cosmetics, not applicable to the goods. The respondent's counsel supported the classification under Chapter 30, citing similar products with therapeutic properties. The Tribunal examined the ingredients of "Axe Brand Universal Oil" and relevant Ayurvedic references, concluding that the oil had therapeutic uses. Relying on precedents like the Amrutanjan case, the Tribunal dismissed the appeal, upholding the classification under Chapter 30 based on therapeutic properties.

Conclusion:
The Tribunal decided that "Axe Brand Universal Oil" should be classified under Chapter 30 due to its therapeutic properties, rejecting the department's appeal for classification under Chapter 33. The judgment emphasized the ingredients and Ayurvedic references supporting the therapeutic nature of the oil, aligning with precedents involving similar products with medicinal properties. The appeal was dismissed, affirming the Commissioner (Appeals) classification under CTH 30049011.