1997 (9) TMI 246 - AT - Central Excise

Summary

Issues: Classification of medicinal preparation "Softovac" under Heading 3003.30 or 3003.10.

The judgment pertains to the classification of the medicinal preparation "Softovac" under Heading 3003.30 or 3003.10. The Assistant Collector initially classified it under Heading 3003.10, but the Collector (Appeals) accepted the contention that it was an Ayurvedic medicament and set aside the lower order. The Revenue appealed against this decision, leading to a detailed analysis of the ingredients, formula, and expert opinions regarding the classification.

The appeal involved a dispute over the classification of "Softovac" based on whether it qualified as an Ayurvedic medicine under Heading 3003.30. The Appellate Tribunal considered arguments from both sides regarding the ingredients, formula, and expert opinions. The appellants argued that the major ingredients were not commonly known as ayurvedic medicine components and were not manufactured exclusively according to authoritative texts. In contrast, the respondent presented extracts from various Ayurvedic texts to demonstrate that all ingredients were described therein and should be used in combination for therapeutic purposes.

The Tribunal extensively reviewed authoritative texts, citations, and affidavits from Ayurvedic experts to determine the classification of "Softovac." While the appeal memorandum lacked specific case law references, the Tribunal referenced previous judgments to establish criteria for Ayurvedic medicines. Notably, the judgment highlighted the importance of ingredients finding recognition in standard Ayurvedic works and cited various authoritative volumes on Ayurveda to support the classification of "Softovac" as an Ayurvedic preparation.

Moreover, the judgment referenced a Supreme Court decision emphasizing that if ingredients known to both Ayurvedic and Western sciences are used in medicine production, the end product retains its Ayurvedic classification. Additionally, precedents were cited where the use of non-traditional Ayurvedic ingredients like sugar did not affect the classification of the final product as Ayurvedic medicine. The analysis also considered the absence of a specific formula for "Softovac" but focused on the relationship between ingredients and their therapeutic effects.

Ultimately, based on the review of texts, expert testimonies, and previous judgments, the Tribunal upheld the Collector's belief that "Softovac" qualified as an Ayurvedic preparation under Heading 3003.30. Consequently, the Revenue's appeal was dismissed, affirming the classification of "Softovac" as an Ayurvedic medicine.