2007 (3) TMI 266 - SC - Central Excise

Classification of goods - Medicinal preparations - Classification under 3303.31 3001.39 and 3003.31 or 3304.00 2108.99 and 3003.20 - whether the Castor Oil (Erand Tel) manufactured by the respondent was ayurvedic or not - Held that - If it was taken exclusively to be ayurvedic as per the original texts then it would fall under Tariff Item No. 3003.31 and if it was other than ayurvedic then it would fall under Tariff Item No. 3003.20. The Tribunal after recording that the records clearly show that the item is ayurvedic held that the Castor Oil (Erand Tel) manufactured by the respondent was classifiable under Tariff Item No. 3003.31 and the same should not be classified under Tariff Item No. 3003.20. There is no discussion either about the original texts or the fact that the respondent had manufactured the Castor Oil (Erand Tel) as per the original ayurvedic text books - Castor Oil (Erand Tel) manufactured by the respondent was ayurvedic medicament and therefore it should fall under Tariff Item No. 3003.31 - Matter remanded back - Decided in favour of Revenue.

Summary

Issues: Classification of medicinal products under specific Tariff Items

Issue 1: Classification of Mahachandanadi Tel
The respondent claimed classification under Tariff Item No. 3303.31 for Mahachandanadi Tel, while the Department contended it should be classified under Tariff Item No. 3304.00. The Tribunal upheld the respondent's classification. However, the Court did not delve into the original texts or manufacturing process to determine the ayurvedic nature of the product, remitting the case back to the Tribunal for a fresh decision with proper reasoning.

Issue 2: Classification of Stimulex Capsules/Tablets
The respondent claimed classification under Tariff Item No. 3001.39 for Stimulex Capsules/Tablets, which the Department argued should be under Tariff Item No. 2108.99. The Tribunal accepted the respondent's classification without detailed reasoning. The Court confirmed the classification without any dispute, as the issue was not specifically challenged in the appeal.

Issue 3: Classification of Castor Oil/Erand Oil
The respondent claimed classification under Tariff Item No. 3003.31 for Castor Oil, while the Department argued it should be under Tariff Item No. 3003.20. The Tribunal found the Castor Oil to be ayurvedic and classified it accordingly. The Court noted the lack of detailed reasoning by the Tribunal regarding the ayurvedic nature of the product and remitted the case back for a fresh decision.

Conclusion:
The Court upheld the classification of Mahachandanadi Tel and Stimulex Capsules/Tablets but remitted the classification of Castor Oil back to the Tribunal for a more reasoned decision. The judgment emphasized the importance of referring to original texts and providing detailed reasoning for classification decisions. All contentions were left open for both parties, and the Civil Appeal was disposed of accordingly.