LexM/S. PUMA AYURVEDIC HERBAL (P) LTD. versus COMMISSIONER, CENTRAL EXCISE, NAGPUR
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A MIS. PUMA AYURVEDIC HERBAL (P) LTD. v. COMMISSIONER, CENTRAL EXCISE, NAGPUR MARCH 8, 2006 B [ASHOK BHAN AND ARUN KUMAR, JJ.] Central Excise Tariff Act, 1985: Medicaments or Cosmetics-Chapters 30 and 33, Note 3003.201 C 3003.30-Twin test-Applicability of-Determination of classification of a product-Assessee claimed to be a manufacturer of Ayurvedic products which were intended to cure certain ailments of the human body-The assessee had a licence from the Drug Controller under the Drugs and Cosmetics Act to manufacture certain Ayurvedic products-The assessee claimed that the D Ayurvedic products were produced from the ingredients found in Ayurveda text books and were manufactured as per the Ayurveda pharmacopoeia and had curative, therapeutic or prophylactic values-It was claimed that the said Ayurvedic products were not items of cosmetics-The evidence produced by the assessee before the authorities in the shape of letters from consumers, from doctors and from Ayurvedic physicians satisfied the common parlance E test-Directorate of Ayurved had clearly and unambiguously stated that the products in question were meant for treatment of certain skin diseases and the type of ingredients used in the products were described in Ayurvedic texts, being useful in such treatments-But CEGAT classified the said Ayurvedic products as Cosmetics under Chapter 33--Correctness of-Held: In order to F determine whether a product is a cosmetic or a medicament the twin tests are (i) whether the item is commonly understood as a medicament which is called the common parlance test and (ii) whether the ingredients used in the product mentioned in the authoritative text books on Ayurveda-The cosmetic products are meant to improve appearance of a person, that is, they enhance beauty- A medicinal product or a medicament is meant to treat some medical G condition-The extent or the quantity of medicament used in a particular product will not be a rele~antfactor-The twin test is satisfied regarding most of the items under consideration-Hence, Puma Neem Facial Pack (Neema/), Puma Anti-pimple Herbal Powder (Pimp/ex), Puma Herbal Facial Pack (Herbaucare), Puma Herbal remedy for Facial Blemishes, Puma Hair Tonjc H 1120 .. ·~ PUMA A YUR HERBAL (P) LTD. v. COMMR., CENT. EX, NAGPUR 1121 Powder (Sukeshij, Puma Anti-Dandruff Oil (Dandika), Puma Shishu Rakshan Tel and Puma Neem Tulsi are clearly medicinal products and are liable to be classified under Chapter 30-However, Puma Herbal Massage Oil, Puma Herbal Massage Oil for women and Puma Scalp Tonic Powder (Scalpton) do not appear to have any medicinal property and, therefore, are liable to be classified under Chapter 33-Drugs and Cosmetics Act, 1940. Words and Phrases: ''Cosmetics' '-Meaning of-In the context of Drugs and Cosmetics Act, 1940. A· B The appellant-assessee claimed to be a manufacturer of Ayurvedic C products which were intended to cure certain ailments of the human body. The appellant had a licence from the Drug Controller under the Drugs and Cosmetics Act, 1940 to manufacture certain Ayurvedic products. The appellant claimed that the Ayurvedic products were produced from the ingredients found in Ayurveda text books and were manufactured as per D the Ayurveda pharmacopoeia and had curative, therapeutic or prophylactic values. It was claimed that the said Ayurvedic products were not items of cosmetics. The Customs, Excise and Gold (Control) Appellate Tribunal classified the said Ayurvedic products as Cosmetics under Chapter 33 of E the Central Excise Tariff Act, 1985. As Cosmetics the rate of excise duty was quite high while as medicaments under Chapter 30 the Ayurvedic products attracted 'Nil' rate of duty. Hence the appeal. On behalf of the appellant, it was contended that the Ayurvedic products of the appellant satisfied the twin tests formulated in Richardson F Hindustan's case; that the evidence produced by the appellant before the authorities in the shape of letters from consumers, from doctors and from Ayurvedic physicians satisfied the common parlance test; that the Directorate of Ayurved had clearly and unambiguously stated that the products in question were meant for treatment of certain skin diseases and G the type of ingredients used in the products were described in Ayurvedic texts, being useful in such treatments; that the opinion of the Chief Chemist that the products in question fell under Chapter 33 i.e.
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