TMI BlogClassification of Products under the Central Excise Tariff Act, 1985, which are claimed by the manufacturers as Ayurvedic medicines. - regarding.X X X X Extracts X X X X X X X X Extracts X X X X ..... ines, and as per the contention of the department the same were cosmetics/ toilet requisites falling under Chapter 33 of the Central Excise Tariff Act, 1985. 2. There are number of judgements on the issue which have laid down certain criteria for the classification of a product as an ayurvedic medicine or as a cosmetic/ toilet requisite. 3. The Hon'ble Supreme Court of India in its judgement in the case of Shri Baidyanath Ayurved Bhavan Limited Vs. CCE, Nagpur [1996 983) ELT 492(SC)] has stated that "The Tribunal rightly points out that in interpreting statutes like the Excise Act the primary object of which is to raise revenue and for which purpose various products are differently classified, resort should not be had to the scientific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of an item under licence under the Drugs Cosmetics Act is no guarantee that it is a medicament". 5. The Hon'ble Tribunal in the case of CCE, Mumbai Vs. M/s. Muller Phipps Ltd. have stated, while holding that Johnson Prickly Heat Powder was a cosmetic classifiable under Chapter 33, that, "Product is available in the market, does not required any prescription of a Doctor and the people generally use it to prevent prickly heat and therefore in the circumstances the curative and prophylactic uses are subsidiary." 6.Even in the case of M/s. Richardson Hindustan Limited, the Hon'ble CEGAT vide judgement date 10.02.1988 [1988 (35) ELT 424 (Trib)] has stated while classifying Vicks Vaporub as an ayurvedic medicine; "that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early will exist a category of products which may be granted a drug licence based on certain subsidiary pharmaceutical or antiseptic constituents or having subsidiary curative or prophylactic value which would, however, be classifiable under Chapter 33 despite the drug licence, in view of the Chapter Note mentioned above. 9. I am directed to state that in view of the judgements and facts discussed above it has been decided that all assessments of products claimed to be ayurvedic medicaments under Chapter 30 should be re-examined by the Commissioners of Central Excise whether manufactured under a drug licence or not so as to redetermine their classification under the Central Excise Tariff Act, 1985. For the purpose the following facts may ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
