1998 (8) TMI 164 - AT - Central Excise

Summary

Issues: Correct classification of the product "Ghrit Kumari Tel" - under CET sub-heading 3003.30 as ayurvedic medicine or under CET sub-heading 3305.10 as perfumed hair oil.

Analysis:
1. The appellants initially classified the product under Tariff Item 68 but faced issues regarding the benefit of exemption under Notification 234/82-C.E. The Collector (Appeals) extended the benefit, which was upheld by the Tribunal. Later, the product was classified under Tariff Item 14F as perfumed hair oil, leading to a duty demand for clearances during a specific period.

2. Following a change in tariff, the appellants sought classification under CET sub-heading 3003.30, but the Assistant Collector upheld the classification under CET sub-heading 3305.10 based on previous adjudication and product advertising. The lower appellate authority confirmed this classification, prompting the appeal.

3. The product's composition includes various ingredients, and the appellants claimed it was prepared according to ayurvedic formula. However, they failed to substantiate this claim, and the argument proceeded without proof of preparation as per ayurvedic standards.

4. Referring to relevant case law, it was highlighted that ayurvedic medicines must be prepared according to formulations in authoritative texts on ayurveda. As the appellants couldn't demonstrate adherence to ayurvedic formulas, the product was deemed not an ayurvedic medicine under CET sub-heading 3003.30.

5. Considering the product's nature as a hair care item with a fragrant odor, it was correctly classified as a perfumed hair oil under CET sub-heading 3305.10 in line with Note 6 to Chapter 33 of the Schedule to the Central Excise Tariff Act, 1985.

6. Ultimately, the Tribunal ruled that the product falls under CET sub-heading 3305.10 as a perfumed hair oil, upholding the lower authority's decision and rejecting the appeal.