2003 (3) TMI 176 - AT - Central Excise

Summary

Issues:
- Classification of products as Ayurvedic medicaments or cosmetics under Chapter 33 of the Central Excise Tariff Act.

Analysis:
1. Common Issue of Classification:
- The central issue in the appeals filed by the Revenue was whether the products manufactured by the Respondents were Ayurvedic medicaments or cosmetics under Chapter 33 of the Central Excise Tariff Act.

2. Arguments by Revenue:
- The Revenue argued that the products were cosmetics, not medicaments, as they did not clearly cure or prevent any specific diseases. They relied on legal precedents and statutory provisions to support their classification as cosmetics, emphasizing the popular meaning of terms over scientific definitions.

3. Arguments by Respondents:
- The Respondents contended that they were manufacturing Ayurvedic medicines under a Drug License, with ingredients listed in Ayurvedic texts. They provided certificates and affidavits supporting the medicinal nature of their products, arguing that they met the criteria for Ayurvedic medicines.

4. Consideration of Submissions:
- The Tribunal analyzed the definitions and notes under Chapter 30 and Chapter 33 of the Tariff Act. They highlighted that mere presence of Ayurvedic ingredients did not automatically classify a product as a medicament. The judgment cited legal cases where products with therapeutic properties were classified as cosmetics due to their primary use for beauty or skin care.

5. Evaluation of Evidence:
- The Tribunal reviewed affidavits and letters submitted by consumers and professionals. They found that the products were primarily used for cosmetic purposes based on the labels and indications provided. The Tribunal concluded that even if the products had some therapeutic properties, they were subsidiary to their cosmetic nature, aligning with the classification under Chapter 33.

6. Final Decision:
- The Tribunal allowed the appeals filed by the Revenue, except for Puma Anti-Dandruff Oil, which was considered an Ayurvedic medicament. The judgment emphasized the importance of primary usage and labeling in determining the classification of products under the Central Excise Tariff Act.