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2015 (10) TMI 139 - AT - Central ExciseClassification of goods - cosmetic preparations or Ayurvedic medicine - Classification under Chapter 30 or 33 - Held that:- Appellants have taken a categorical stand that the goods were being manufactured by them under the Drug licence issued by ASU Drugs Controller of the Kerala Government and all the ingredients used by them in the said product have been placed in ancient Ayurvedic Text Books. The said two contentions raised by the appellant do not stand rebutted by the Revenue but the lower authorities have solely relied upon the report of the Chemical Examiner, which opined that the items appeared to be appropriately classifiable as ‘Cosmetic preparations' - while dealing with the disputed issue, the Hon'ble Supreme Court in the case of Puma Ayurvedic Herbal (P) Ltd. [2006 (3) TMI 141 - SUPREME COURT OF INDIA] has observed that it has to be seen that how the common man understands the product in question and whether the ingredients used in the product stand mentioned in the authoritative text books of Ayurveda and as to whether the goods have been manufactured under Drug Controllers licence. Lower authorities have not disputed the appellant's stand that they have a Drug licence from the Drug Controller to manufacture the goods in question and the ingredients also find place in the ancient Ayurvedictext books. As such we are of the view that appellant has a good prima facie case in its favour so as to allow the stay petitions unconditionally. - As per the Board's Circular No. 25/91 dated 03.10.1991 clarifying that in cases of Ayurvedic medicines and in case of doubts, the Collectors are required to make a reference to the Board, who would take up the matter with the Drugs Controller of India or the Commissioner may exercise his option to take up the matter and seek clarification from the Drug Controller. The said Circular also talks about the twin tests laid down for determining the classification of the product, by the Hon'ble Supreme Court in the case of CCE, Hyderabad V. M/s. Richardson Hindustan Ltd [1989 (1) TMI 352 - SUPREME COURT OF INDIA]. The said two tests are the common parlance test as also the mentioning of the ingredients in the authoritative books on Ayurvedic medicines. - Impugned order is set aside - matter remanded back - Decided in favour of assessee.
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