Home Case Index All Cases GST GST + AAR GST - 2023 (9) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 125 - AAR - GSTClassification of goods - JAC OLIVOL BODY OIL - whether the product falls within the category of medicaments or cosmetics? HELD THAT:- A product cannot be classified as a medicament only for the reason that it is manufactured using ingredients regulated under the Drugs and Cosmetics Act. There must be therapeutic or prophylactic uses of the product and the product must be manufactured primarily to control or cure a disease. In ALPINE INDUSTRIES VERSUS COLLECTOR OF CENTRAL EXCISE, NEW DELHI [2003 (1) TMI 103 - SUPREME COURT] the issue before the Hon’ble Apex Court was to decide classification of the product ‘Lip Salve’, manufactured in accordance with the defence services specifications and supplied entirely to military personnel. The Hon’ble Supreme Court, held the item as a preparation for protection of lips and skin and is not a 'medicament'. In the instant case, the primary use of the product Jac Olivol Body Oil, as it appears from the label representing the product, is to care for skin - the product is described as ‘For soft, smooth, glowing and & healthy skin’ - the product label, as submitted by the applicant in paper copy is not identical with what the authorized advocate sent through e-mail on 28.07.2023. When the product itself proclaims to ‘apply daily before or after bath all over your body’, it is difficult for us to accept that people ordinarily buys it for treating of an ailment - the item namely JAC OLIVOL BODY OIL is commonly understood as a ‘preparations for the care of skin’ thereby considered to be a cosmetic product used to get soft and smother skin and not considered as a medicament used for the treatment or prevention of any disease or ailment. The product JAC OLIVOL BODY OIL intended to be manufactured & sold by the applicant would be covered under Heading 3304 of THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT and would be taxed accordingly under the GST Act.
|