2004 (2) TMI 154 - AT - Central Excise

Summary

Issues:
Classification of "Anoop Herbal Hair Oil" and "Santhosh Hair Tone" under the Central Excise Tariff Act, 1985.

Analysis:
The appeals involved in this judgment concern the classification of "Anoop Herbal Hair Oil" and "Santhosh Hair Tone" under the Central Excise Tariff Act, 1985. The Revenue argued that the products should be classified under Chapter sub-heading 3305.90 as they are not medicaments but hair oils. They contended that the ingredients mentioned in the Ayurvedic texts do not automatically classify the products as medicaments. On the other hand, the Respondents argued that the products are therapeutic in nature, intended to treat hair-related issues, and should be classified under Chapter 30 as medicaments. They provided evidence of the products' composition, intended use, and certifications from the Drug Controller and Licensing Authority of the Government of Kerala.

In the case of "Anoop Herbal Hair Oil," the Commissioner (Appeals) considered various factors such as the product's manufacturing process, certification as an Ayurvedic medicine, perceived therapeutic value, high price compared to regular hair oils, and absence of cosmetic advertising. The Commissioner concluded that the product is appropriately classified under Chapter 30 as a medicament. Similarly, in the case of "Santhosh Hair Tone," the Commissioner (Appeals) found that the product is perceived as a remedy for hair-related issues, not advertised as a cosmetic, and generally sold without a prescription, leading to its classification under Chapter 30.

The judgment referenced relevant legal precedents and guidelines, including Board Circulars and Supreme Court decisions, to support the classification of the products as medicaments under Chapter 30. The Tribunal upheld the decisions of the Commissioner (Appeals) and rejected the appeals filed by the Revenue. The Tribunal determined that both "Anoop Herbal Hair Oil" and "Santhosh Hair Tone" are primarily used for therapeutic purposes, supporting their classification under Chapter 30 of the Central Excise Tariff Act, 1985.