Central Excise - Chapter 30 - Classification of the products claimed as Ayurvedic medicine under the C.E.T.A., 1985 - Classification regarding - Central Excise - 25/91

Central Excise - Chapter 30 - Classification of the products claimed as Ayurvedic medicine under the C.E.T.A., 1985 - Classification regarding Circular No. 25/91 Dated 3-10-1991 [From F. No. 103/10/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Chapter 30 - Classification of the products claimed as Ayurvedic medicine under the C.E.T.A., 1985 - Classification regarding. Representations have been received from manufacturers of Ayurvedic preparations that they have been facing problems in different Central Excise Collectorates in the matter of identification/classification of such products. The doubts relate to the question as to whether the products claimed to be Ayurvedic medicine, are in fact so, and whether those would merit classification under Sub-heading No.3003.30 of the Schedule to the Central Excise Tariff Act, 1985. 2. According to the guidelines already in vogue, each medicament used in the various systems of treatments eg. Ayurvedic, Unani and Siddha, has to be examined on merits and, in specific cases of doubts, the Collectors are required to make a reference to the Board, who take up the matter with the Drugs Controller of India. 3. The Government have further examined the matter in the light of parameters prescribed by the Tribunal in their Order No. 116/88-C, dated 10-2-1988 in the case of M/s. Richardson Hindustan Ltd. v. C.C.E., Hyderabad. The Tribunal held that a preparation would merit classification as an Ayurvedic medicine, if in the common parlance, it is known as an Ayurvedic medicine and all its ingredients are mentioned in the authoritative book(s) on Ayurvedic medicines. It has also been observed that the aforesaid two tests have been upheld by Hon'ble Supreme Court in the case of Civil Appeal No.2127 of 1988-C.C.E., Hyderabad v. M/s. Richardson Hindustan Ltd. - Supreme Court's Order dated 10-1-1989. 4. The Government have accepted the above referred two tests for determining the classification of the products claimed to be as Ayurvedic medicine (excluding herbal or ayurvedic cosmetic) and these may accordingly, be kept in view while deciding similar cases. 5. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 6. All pending assessments of the type indicated above, may be finalised on the above basis.