2005 (12) TMI 159 - AT - Central Excise

Summary

Issues: Classification of product "Brahmi Oil Herbs & Brahmi Amla Oil Herbs" under Heading 3003.30 as Ayurvedic Medicines for exemption vs. Revenue's classification under Heading 3305.99 as preparation for hair use without perfume.

In the present appeal, the dispute revolves around the classification of the appellant's product "Brahmi Oil Herbs & Brahmi Amla Oil Herbs" under Heading 3003.30 as Ayurvedic Medicines for exemption, contrary to Revenue's classification under Heading 3305.99 as a preparation for hair use without perfume. The appellants have contended that their product falls under the category of Ayurvedic Medicines, supported by exemption Notification Nos. 41/95-C.E. and 22/96-C.E. The goods have been described as per Ayurvedic Text Book ingredients and formula, manufactured under a drug license, and endorsed by expert opinions indicating therapeutic benefits. However, authorities rejected these claims due to the absence of specific disease indications and treatment durations, questioning the therapeutic or prophylactic value of the product.

Upon examination, it was found that the product was manufactured in accordance with ingredients from authoritative Ayurveda books and prescribed formulas, meeting the criteria to be classified as 'Ayurvedic medicine.' Citing the decision in CCE, Calcutta v. Sharma Chemical Works, it was established that products used for various treatments and registered with the Drug Controller, even if sold over the counter, qualify as Ayurvedic medicines. Additionally, the decision in Himtaj Ayurvedic Udyog Kendra v. CCE, Allahabad, further supported this classification. Consequently, the Tribunal accepted the appellant's claim for classification under Heading 3003.30, extending the relevant notification and overturning the impugned order.