1988 (2) TMI 214 - AT - Central Excise

Summary

Issues Involved:

1. Classification of Vicks VapoRub and Vicks Inhaler under the Central Excise Tariff Act, 1985.
2. Applicability of common parlance test for classification.
3. Consideration of certificates from DGTD and manufacturing licenses.
4. Examination of ingredients in authoritative Ayurvedic books.

Summary:

1. Classification of Vicks VapoRub and Vicks Inhaler:
The primary issue is whether Vicks VapoRub and Vicks Inhaler fall under Heading 3003.30 as "Medicaments, including those used in Ayurvedic, Unani, Siddha, Homoeopathic or Biochemic system" or under Heading 3003.19 as "Patent or proprietary medicaments, other than those exclusively Ayurvedic, Unani, Siddha, Homoeopathic or Biochemic."

2. Applicability of Common Parlance Test:
The Tribunal emphasized the importance of the common parlance test, referencing the Shree Baidyanath Ayurved Bhawan Limited case, which established that the classification should be based on how the products are perceived by the public. The Tribunal noted that Vicks VapoRub is treated as an Ayurvedic medicine in common parlance, supported by certificates from Ayurvedic doctors, consumers, and retail sellers.

3. Consideration of Certificates from DGTD and Manufacturing Licenses:
The appellants argued that the Directorate General of Technical Development (DGTD) and the licensing authority had recognized Vicks VapoRub and Vicks Inhaler as Ayurvedic preparations. The Tribunal acknowledged the persuasive value of these certificates but clarified that they are not the sole deciding factors for classification under the Central Excise Tariff.

4. Examination of Ingredients in Authoritative Ayurvedic Books:
The Tribunal directed the Assistant Collector to examine whether all the ingredients of Vicks VapoRub and Vicks Inhaler are mentioned in authoritative Ayurvedic books. The appellants claimed that the ingredients were listed in such books, but the Collector (Appeals) had not considered this evidence.

Conclusion:
The Tribunal set aside the impugned order and remanded the matter to the Assistant Collector of Central Excise, Hyderabad, for a de-novo examination. The Assistant Collector is instructed to verify if the ingredients of Vicks VapoRub and Vicks Inhaler are mentioned in authoritative Ayurvedic books and to determine if these products are recognized as Ayurvedic medicines in common parlance. The Assistant Collector must complete the de-novo proceedings within three months from the date of receipt of the order.