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Issues:
Classification of 'gulkand' under Chapter Heading 3003 as Medicament or under Chapter 2001 as Food products. Analysis: The case involved a dispute regarding the classification of 'gulkand' under the Central Excise Tariff Act, 1985. The appellant Revenue challenged the Order passed by the Commissioner (Appeals) upholding the classification of 'gulkand' under Chapter Heading 2001 instead of 3003. The appellant contended that the classification under Chapter 3003.31 was binding and should not have been disturbed. They argued that the product should be classified as Ayurvedic medicine based on various grounds, including possession of a Drug Manufacturing License and references to Ayurvedic texts describing the therapeutic properties of 'gulkand'. The Commissioner (Appeals) was criticized for allowing exemption under Notification No. 1/93 for Small Scale Industries based on ownership of the brand name "Tower Brand." The appellant sought a reversal of the classification to Sub-heading 3003 and denial of the exemption. The appellant Revenue asserted the application of the principles of res judicata to prevent the reopening of the classification of 'gulkand'. They referenced a previous order remanding the matter for de novo adjudication, indicating that all issues were open for consideration. The appellant relied on legal precedents, including the Supreme Court case of M/s. Shree Baidyanath Ayurved Bhavan Ltd., to support their argument. On the other hand, the respondents' counsel emphasized that 'gulkand' did not meet the criteria of being classified as a medicine based on the test laid down by the Supreme Court. They argued that 'gulkand' was commonly used for flavoring betel leaves and did not require a medical prescription, thus should be classified under Chapter 2001 as a food product. The respondents cited cases supporting their position and highlighted that the reclassification of goods could be raised at any stage. After considering the arguments and evidence presented by both sides, the Tribunal concluded that 'gulkand' should be classified under Chapter Heading 2001 and not under Chapter Heading 3003. The appeal filed by the Revenue was dismissed, affirming the classification of 'gulkand' as a food product.
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