1994 (11) TMI 231 - AT - Central Excise

Summary

Issues:
Classification of "Ad-vitamin Massage Oil Forte" under sub-heading 3003.19 of CET, 1985 or under sub-heading 3304.00.

Detailed Analysis:

1. Issue of Classification:
The central issue in this case is the classification of the product "Ad-vitamin Massage Oil Forte" under the Central Excise Tariff Act, 1985. The appellants claimed classification under sub-heading 3003.19 as a patent or proprietary medicine, while the authorities classified it under sub-heading 3304.00 as a preparation of the skin.

2. Background and Facts:
The appellants, M/s. Sunny Industries (P) Ltd., initially classified their product under Tariff Item 14F as a cosmetic. However, with the reconstitution of the Central Excise Tariff Act in 1986, the classification was modified, leading to a dispute regarding the appropriate classification of the product.

3. Previous Tribunal Decision:
The Tribunal had previously ruled against the appellants in a similar case, where it was held that the product falls under Tariff Item 14F as cosmetics and toilet preparations. The appellants sought reconsideration of this decision, arguing that the product should be classified as a drug due to its medicinal properties.

4. Arguments for Classification as a Drug:
The appellants contended that the product should be considered a drug because it contains medicinal ingredients, is used for massage, and has therapeutic properties. They presented evidence such as licenses from Drug Control Authorities, testing by Government Analysts, and certifications from medical professionals to support their claim.

5. Precedents and Case Law:
The appellants cited various legal precedents where products with medicinal properties were classified as drugs rather than cosmetics. They referenced cases such as M/s. Pasteur Laboratories (P) Ltd. v. Collector of Central Excise and Collector of Central Excise v. Nicholas Laboratories India Ltd. to support their argument.

6. Counterarguments and Tribunal Decision:
The Respondents argued that previous Tribunal decisions and case law supported the classification of the product as a cosmetic under the new tariff. They highlighted that the classification under the old tariff does not necessarily carry over to the reconstituted tariff. The Tribunal upheld the previous decision, considering the arguments presented and the relevant case law.

7. Final Decision:
After thorough consideration of the submissions and previous orders, the Tribunal upheld the classification of "Ad-vitamin Massage Oil Forte" under sub-heading 3304.00 of the Central Excise Tariff Act, 1985. The appeal was rejected based on the findings and legal interpretations presented during the proceedings.

This detailed analysis outlines the key arguments, legal precedents, and the final decision of the Appellate Tribunal regarding the classification of the product in question under the Central Excise Tariff Act, 1985.