2005 (9) TMI 168 - AT - Central Excise

Summary

Issues: Classification of 'Vaseline Intensive Care Heel Guard' under Central Excise Act, 1944

Analysis:
1. The appellants classified 'Vaseline Intensive Care Heel Guard' under Heading 3003.10 as a medicament for treating cracked heels.
- The assessments were provisional, with subsequent Show Cause Notices issued for reclassification under sub-heading 3304.00.
- The lower authorities finalized the classification under sub-heading 3304.00, leading to duty demands under Section 11A of the Central Excise Act, 1944.

2. The lower authority's analysis and findings:
- The product was deemed a skin care preparation for heels based on packaging and promotional material.
- Not considered a medicament under Chapter 30 due to its usage as a barrier cream.
- Testing revealed ingredients like salicylic acid, lactic acid, and triclosan, supporting the skin care classification.
- The entity was intended for cracked heel treatment and skin care, not curative in nature.

3. Evaluation of the lower authority's decision:
- The Asst. Commissioner's logic focused on the distinction between cosmetics and drugs, emphasizing the product's cosmetic effects.
- The presence of salicylic acid was crucial, with varying opinions on its curative properties and concentration.
- The entity's classification as a 'Barrier Cream' with mitigating substances was compared to legal precedents for medicated creams.

4. Tribunal's decision and reasoning:
- Upheld the classification under Heading 30.03 as a medicated 'Barrier Cream' for cracked heels.
- Referenced the Tamilnadu State Drug Controller's license for production as supporting evidence.
- Cited previous cases to justify the classification under Heading 30.03 as a Patent & Proprietary Medicament.

5. Conclusion and Outcome:
- The appeal was allowed, setting aside the lower authority's order and upholding the classification under Heading 3003.10.
- Duty demands under the reclassified heading were not upheld, emphasizing the entity's nature as a medicament for cracked heels.

This detailed analysis highlights the classification dispute of 'Vaseline Intensive Care Heel Guard' under the Central Excise Act, 1944, focusing on the product's composition, intended usage, and legal precedents for determining its classification as a medicament or skin care preparation.