2005 (8) TMI 241 - AT - Central Excise

Summary

Issues: Classification of products as Ayurvedic medicaments or Cosmetics under Tariff Heading 3003.39 or 3304.00

In the judgment, the appellants challenged the classification of their products as Cosmetics under Tariff Heading 3304.00 by the Commissioner (Appeals), contending that the items, including Kaveri Fairness Milk Cream and Pankaja Kasthuri, should be classified as Ayurvedic medicaments under Tariff Heading 3003.39. The appellants had obtained a Drug Licence from the Drug Controller for manufacturing these items as Ayurvedic Medicaments. They argued that the products were used for treating skin diseases like Periorbitl Melanosis, Melasma, blackish skin discoloration due to sun allergy, black patches on the face, and fungal infections between the thighs. The appellants supported their claim by referencing Ayurvedic texts and medical dictionaries to establish the therapeutic, prophylactic, or curative value of their products. The Tribunal examined the evidence presented and cited legal precedents, including judgments by the Apex Court and previous Tribunal decisions, to support the classification of products manufactured in accordance with Ayurvedic texts and having therapeutic value as Ayurvedic medicaments. The Tribunal found that the appellants' products met these criteria and should indeed be classified as Ayurvedic Medicaments under Tariff Heading 3003.30 of the Central Excise Tariff, allowing the appeal and granting consequential relief to the appellants.

This judgment highlights the importance of adherence to Ayurvedic manufacturing practices and the presence of therapeutic value in determining the classification of products as Ayurvedic medicaments under the Central Excise Tariff. The decision underscores the significance of obtaining a Drug Licence and utilizing ingredients mentioned in Ayurvedic texts to support the classification claim. Legal precedents, including judgments by the Apex Court and previous Tribunal decisions, are crucial in establishing the classification criteria for Ayurvedic products. The judgment emphasizes the need for products to demonstrate therapeutic, prophylactic, or curative value in treating specific ailments to qualify as Ayurvedic medicaments, rather than being classified as Cosmetics. The Tribunal's detailed analysis of the evidence presented by the appellants, along with references to authoritative sources, showcases the meticulous approach taken in determining the appropriate classification for the products in question. Ultimately, the decision to classify the products as Ayurvedic Medicaments under Tariff Heading 3003.30 serves as a precedent for similar cases involving the classification of Ayurvedic products within the Central Excise Tariff framework.