2004 (4) TMI 205 - AT - Central Excise

Summary

Issues Involved:
1. Classification of Vicks Vaporub, Vicks Inhaler, Vicks Medicated Cough Drops, Vicks Herbal Throat Drops, and Vicks Blue/Hunnies Drops under sub-heading 3003.30 or 3003.19 of the Central Excise Tariff Act.
2. Classification of Chatpat Churanets under sub-heading 3003.30 or 1704.90 of the Tariff.
3. Refund of duty paid by the appellants.

Detailed Analysis:

1. Classification of Vicks Products:
Vicks Vaporub:
- The main raw materials used include Pudinah Ke Phool, Karpoor, Ajowan ke Phool, Tarpin ka Tel, Jataephal Tel, Nilgiri Tel, and Ointment Base.
- All these ingredients are mentioned in authoritative Ayurvedic texts.
- Previous rulings, including Richardson Hindustan Ltd. v. CCE, have classified Vicks Vaporub under sub-heading 3003.30 as Ayurvedic medicament.
- The product satisfies the two tests: ingredients mentioned in Ayurvedic texts and known as Ayurvedic medicament in common parlance.

Vicks Medicated Cough Drops, Vicks Herbal Throat Drops, Vicks Blue/Hunnies Drops:
- Reliance on the Supreme Court judgment in Naturalle Health Products (P) Ltd. v. CCE, Hyderabad, which held that a patent Ayurvedic medicament could be classified as such if all ingredients are mentioned in Ayurvedic texts.
- The products contain only ingredients mentioned in Ayurvedic texts, thus classifiable under sub-heading 3003.30.

Vicks Inhaler:
- Contains active ingredients Pudinah Ke Phool, Karpoor, and Wintergreen Tel, which are mentioned in Ayurvedic texts.
- Non-active ingredients like Siberian Pine Needle oil and Sassafras oil do not affect the classification.
- Following Board's Circular No. 196/30/96-CX, non-active ingredients do not alter the Ayurvedic nature of the product.
- Classified under sub-heading 3003.30.

2. Classification of Chatpat Churanets:
- The product contains ingredients mentioned in authoritative Ayurvedic texts and is known as an Ayurvedic medicament in common parlance.
- The previous classification by the Collector under sub-heading 1704.90 was not substantiated with specific findings.
- Remanded to the jurisdictional Adjudicating Authority for a fresh decision in accordance with the law.

3. Refund of Duty:
- The appeal regarding the refund of duty paid by the appellants is remanded to the jurisdictional Adjudicating Authority.
- The decision will be based on the classification of Vicks Vaporub and Vicks Inhaler as determined in the present judgment.

Conclusion:
The appeals concerning the classification of Vicks Vaporub, Vicks Medicated Cough Drops, Vicks Herbal Throat Drops, Vicks Blue/Hunnies Drops, and Vicks Inhaler are allowed, classifying them under sub-heading 3003.30 as Ayurvedic medicaments. The appeal related to Chatpat Churanets is remanded for further examination. The appeal regarding the refund of duty is also remanded for a fresh decision based on the current classification rulings. All appeals are disposed of accordingly.