TMI Blog1988 (2) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... 85-86 and 181/85-86. Prior to 15-4-1986, they claimed classification of the said products under Heading 3003.19 as Patent or proprietory medicines-Others . The basis of this revised classification list was that the Directorate General of Technical Development had approved those preparations as Ayurvedic in their letter No. D P2(436)/84, dated 6-9-1984. In his Order-in-Original No. C. No. V/30/17/6/86 Vc, dated 10-6-1986, the Assistant Collector of Central Excise, Anti-evation, Hyderabad observed that there was no change in the manufacturing process of those products and the registration of those products under the caption of Ayurvedic preparation could not be a basis for classification of the goods for the purpose of Central Excise duty. He also observed that the appellants could not produce any well-known Ayurvedic pharmacopoeial book to show that the products conformed to known Ayurvedic medicaments. He also observed that some of the raw materials used by them, viz. Paraffin, Camphor, Turpentine Oil, Menthol, Nilgiri Tel (Eucalyptus oil) etc. were known to Various pharmacopoeas, and they did not become Ayurvedic substance just because an equivalent Hindi name was written on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition to the other aspects of the medical system. Some of the Ayurvedic books known as Nighantugranthas like Dhanvanta-rinighantu, Kaiyadevanighantu, Bhavaprakasanighantu, Rajanighantu, etc., deal mainly with single drugs, describing their habitat characteristics and therapeutic action. Ayurvedic compound formulations are divided into two groups viz. (1) Kasthausadhi (predominantly plant drugs) and (2) Rasausadhi (Predominantly metals and minerals). There are many authentic books on both the groups of compound formulations. While Sarngadhara samhita, Cakradatta, Bhaisajya ratnavali, Sahasrayogam, Bharat Bhaisajya Ratnakara, etc. deal with both the groups of formulations, others like Rasendra Sarasangraha, Rasaratna Samuccaya, Rasaprakasa Sudhakara, Ayurveda prakasa, Rasatarangini, Rasayogasagara etc. deal only with Rasausadhi group of formulations." The learned advocate has argued that the appellants were registered by the Directorate General of Technical Development vide letter No. D P/2(436)/84/3892, dated 6-9-1984 as an industrial unit and the said Directorate approved the following Ayurvedic preparations, viz., (i) Ayurvedic Digestive Aid Tablets, (ii) Ayurvedic Nasal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ingredients of the two drugs Vicks VapoRub and Vicks Inhaler are mentioned in the authoritative books on Ayurvedic medicines. According to the ratio of the Tribunal s decision, Ayurvedic medicines for the purpose of classification for Central Excise duty need not be manufactured strictly according to the formula described in such authoritative book. It is sufficient if all the ingredients are mentioned in the authoritative book of Ayurvedic medicines. The formulations of Vicks VapoRub and Vicks Inhaler are noted in the recognised books of Ayurveda. The learned Advocate has argued that in common parlance Vicks VapoRub and Vicks Inhaler are known as Ayurvedic medicines. To substantiate his arguments, he has drawn our attention to the extracts from the authoritative books on Ayurvedic medicines vide Pages 92 to 146 of the Paper Book filed by the appellants, the opinions of Ayurvedic Doctors at pages 75 to 79 of the Paper Book, Certificates of consumers placed at pages 81 to 83 and certificates of retail sellers of Ayurvedic Drugs at pages 85 to 87 of the Paper Book. He has stated that all these documents were submitted before the Collector of Central Excise (Appeals), but ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asara Siddha Prayog Samgraha, Part I . The ingredients mentioned therein are Vaselin, Parafin, Camphor, Peeperment Oil, Thaimol (Ajowan Oil), Eucalyptus oil (Nilgiritail) and Cinamon Oil (Dalchini Oil). At page 69 of the said Paper Book are the ingredients of Ayurvedic VapoRub Decongestant Vapourising Ointment. These are Pudine ke phool, Karpur, Thaimol (Ajowan ke phool), Sarala drava, Nilgiri tail, jatiphal tail and ointment base. The ingredients given in the above two formulae do not tally. Sarala Drava and jatiphal tail do not figure in ths classical Ayurvedic Book at page 94 of the Paper Book. On the other hand, Dalchini oil is not found in the formulae do Vicks VapoRub at page 69 of the Paper Book. Therefore, the appellants Vicks VapoRub is not manufactured according to the formula in the Ayurvedic classical book. The composition of the appellants Ayurvedic Nasal Decongestant Inhaler (Vicks Inhaler) as given at page 68 of the Paper Book is Pudina ke phool 0.38 G, Karpur 0.38G, Banafshah 0.11C and Sarala Drava 0.43G in an Inhaler of 1 ml. At Pages 95, 96 and 98 of the Paper Book there is no real formula prescribed for the Inhaler in the classical book in Ayurveda. (ii) Clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.T.C. 27.0]. In paragraph 65 of its decision, the Tribunal has observed : The definitions of the terms used in one enactment cannot be imported while interpreting the terms and expressions in another enactment. The definitions are always subject to the context of a particular enactment and the object behind it. Words and phrases occurring in an Act cannot be construed according to the meaning assigned to them in other Acts which are not incorporated or referred to therein. In the case of Macbeth v. Chislet - (10 A.C. 220 at page 224) the House of Lords observed : It would be a new terror in construction of Acts of Parliament if we were required to limit a word to an unnatural sense because in some Act, not incorporated or referred to, such an interpretation is given to it for the purposes of that Act alone. In paragraph 66 of its decision the Tribunal observed that the above quoted passage was cited with approval in a Sales Tax case by the Supreme Court in the Commissioner of Sales Tax, Madhya Pradesh v. M/s. Jaswant Singh Charan Singh - [A.I.R. 1967 S.C. 1454] and by Delhi High Court in an Excise Case, Hyderabad Asbestos Cement Products Ltd. and Another v. Union of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r on its container or both, a name which is not specified in a monograph, in a Pharmacopoeia, Formulary or other publications, namely :- (a) The Indian Pharmacopoeia; (b) The International Pharmacopoeia; (c) The National Formulary of India; (d) The British Pharmacopoeia; (e) The British Pharmaceutical Codex; (f) The British Veterinary Codex; (g) The United States Pharmacopoeia; (h) The National Formuiary of the U.S.A.; (i) The Dental Formulary of the U.S.A.; and (j) The State Pharmacopoeia of the U.S.S.R. or which is brand name, that is, a name or a registered trade mark under the Trade and Merchandise Marks Act, 1958 (43 of 1958), or any other mark such as a symbol, monogram, lebel, signature or invented words or any writing which is used in relation to that medicine for the purpose of indicating or so as to indicate a connection in the course of trade between the medicine and some person, having the right either as proprietor or otherwise to use the name or mark with or without any indication of the identity of that person. However, there is no definition of Ayurvedic medicaments in the Central Excises and Salt Act or in the Central Excise Tariff. Although A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Pallavi Medicine Centre, Medical and General Stores, Shivaji Park, Mumbai, (2) Ayurvedic Medical and General Stores, Mahim, Bombay and (3) Patwardhan Brothers, Dadar, Bombay, in which these three sellers have stated that they are selling Vicks VapoRub as Ayurvedic Medicines. Revenue has not placed any material before us to prove to the contrary. This product satisfies the test of common parlance to be known as Ayurvedic medicine. / 10. The appellants have produced registration certificate from the Directorate General of Technical Development which shows that the two products of the appellants, viz., Vicks VapoRub and Vicks Inhaler are Ayurvedic preparations. The licensing authority, who has granted licence to manufacture these two products, has also accepted Vicks VapoRub and Vicks Inhaler as Ayurvedic medicines. Although D.G.T.D. certificate and manufacturing licence cannot be the only deciding factors to hold that the products are Ayurvedic medicines, but the categorisation made by those authorities has, in our opinion, persuasive value and the certificates issued by them cannot be totally ignored. We, however, note that Bombay High Court judgment reported in 1982 (10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Sodhi Harre. Citric Acid was used in Pachakbati and Sodhi Harre. Steel was used in Atui Shaktidata. Swet Parpati contained potassium nitrate, Alum and Ammonium chloride. In the said case, the Tribunal dismissed the first argument of the learned Departmental Representative on the ground that definition of Ayurvedic medicine given in Section 3(a) of the Drugs and Cosmetics Act could not be followed for deciding the classification for central excise duty. Regarding the second contention of the Departmental Representative it was held by the Tribunal that Menthol, Citric Acid, Camphor, Iron, Alum, Borax, Potassium nitrate, Ammonium Chloride were, no doubt pharmacopoeial items, but their use in Ayurvedic preparations did not render such preparations non-ayurvedic, provided the use of these ingredients is recognised in authentic treatises on Ayurveda. Based on this principle the Tribunal held that all those products qualified for categorisation as Ayurvedic medicines and the exemption from duty was admissible in respect of those medicines. We do not find any justifiable reasons for not following this principle. The ingredients of Vicks VapoRub are Pudine ke phool, Karpur, Ajowan ke phoo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing before taking de-novo decision on this limited issue. 13. So far as Vicks Inhaler is concerned, the appellants have not filed any materials to prove the test of common parlance. They have, however, described the manufacturing process of Vicks Inhaler in paragraph 3 of the Appeal Memorandum, which is as follows :- (a) In a clean mixing tank add Karpoor and Pudinah Ke Phool. (b) Add to the above, Wintergreen Tel. (c) Mix for 15 minutes till the medication is effected. (d) Filter the complete medication. (e) The Inhaler Vicks are medicated by means of a filler which delivers approximately 1 cc medication. The manufacturer s label on Vicks Inhaler describes the following indications :- Vicks Inhaler clears stuffy Nose Fast. Use as often as needed. Inhale medicated vapours through nostril while holding other nostril closed. Inhale deeply to make breathing feel clear and cool. The ingredients of the product and their quantum are also mentioned on the label. They have filed photocopies of certain Slokas from the books of Ayurvedic medicines describing Nazal Inhaler device. The learned Advocate has drawn our attention to pages 95 to 98 of the Paper Book in this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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