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2003 (11) TMI 69 - SC - Central ExciseWhether or not medicated cough drops and throat drops manufactured by the appellants in accordance with and under the licence issued under the Drugs and Cosmetics Act, 1940 for the manufacture of "Ayurvedic Drugs" are classifiable as Ayurvedic Medicaments for the purpose of levy of central excise duty? Whether the products "Sloan's Balm" and "Sloan's Rub" are ayurvedic medicines and are classifiable under Chapter Heading 3003.30 as contended by the appellants attracting nil rate duty OR Classified under Chapter sub-heading 3003.10 chargeable to duty at 15% ad valorem? Held that:- The Tribunal has completely misdirected itself in law and on facts by being influenced by the unimportant factors like the mention of similar names of goods in Martindale and patent of the same in USA and failed to take into account the relevant factors like the issue of licence to manufacture Ayurvedic drugs under the Drugs Act, the popular understanding of the products, the law laid down by this Court in the cases referred to above and the circular issued by the Government of India in the light of Richardson Hindustan case. The Tribunal placed undue reliance on the definition of Ayurvedic medicament in Section 2(a) of the Drugs Act. In our opinion, all the products ought to be classified as Ayurvedic medicaments under sub-heading 3003.30 of the Central Excise Tariff. For the foregoing reasons, we have no hesitation to allow both the appeals and set aside the orders impugned in these appeals passed by the CEGAT, New Delhi, in appeal
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