2005 (5) TMI 148 - AT - Central Excise

Summary

Issues: Classification of Mahachandanadi Tail, Castor (Erand) Oil, Stimulex Capsules/Tablet

Mahachandanadi Tail:
The appellant claimed classification under Heading 3003.31 for Mahachandanadi Tail, produced in accordance with ayurvedic texts. The Revenue classified it under Heading 3304.00. The appellant argued that the item falls under 3003.31 for medicaments manufactured exclusively as per specified texts. Reference was made to the Apex Court judgment on 'Dabur Lal Tel' for classification. The Revenue contended that therapeutic value does not change the classification. The Tribunal found merit in the appellant's contention, noting the item's mention in the ayurvedic pharmacopoeia. It compared the case to Lal Tel and classified Mahachandanadi Tail under Heading 3003.31 as claimed.

Castor (Erand) Oil:
The Revenue classified Castor (Erand) Oil under 3003.20, rejecting the appellant's claim for 3003.31 classification. The appellant argued for the latter due to the product being ayurvedic. It was highlighted that 3003.20 excludes ayurvedic medicine. Both parties agreed the product was a medicament, differing only on its ayurvedic nature. The Tribunal observed the item was ayurvedic and could not be classified under 3003.20, which excludes ayurvedic items. The order classifying it otherwise was set aside in favor of the appellant's claim.

Stimulex Capsules/Tablet:
The appellant sought classification under Heading 3003.39 for Stimulex Capsules/Tablet, emphasizing its ayurvedic nature. The Commissioner classified it under 2108.99 as a food supplement. The appellant argued the product was a medicament, not a supplement, citing ingredients and a previous Tribunal judgment on a similar product. The Tribunal noted the medicinal properties of the ingredients, distinguishing between food supplements and disease prevention preparations. Relying on the previous judgment, it classified Stimulex Capsules under Heading 3003.39, setting aside the Commissioner's classification under 2108.99.

In conclusion, the Tribunal upheld the appellant's classification claims for all three items - Mahachandanadi Tail under Heading 3003.31, Castor (Erand) Oil under Heading 3003.31, and Stimulex Capsules/Tablet under Heading 3003.39, setting aside the Revenue's contrary classifications.