COMMISSIONER OF CENTRAL EXCISE Vs. SRI RAMTIRTH INTERNATIONAL

JUDGEMENT

(1.) The revenue is aggrieved with the de novo Order -in -Original No. 25/2001 (Commr.) dated 20.7.2001 passed by Commissioner of Central Excise, Coimbatore by which he has agreed with the assessee that the product namely 'Brahmi Oil' is an ayurvedic product manufactured in accordance with formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 and requires to be classified under tariff heading 3003.31 carrying NIL rate of duty. In order to arrive at this conclusion he has examined the evidence produced by the assessee inasmuch as the opinion expressed by the Board in consultation with the Drugs Controller of India under the Directorate General Health Services. The Drugs Controller vide letter No. D.G.H.S.G.O. No. 11048/1/88 -P dated 22.4.88 has also opined that 'Ramtirth Brahmi Oil' is classifiable as an ayurvedic medicine. Further he has also referred to the opinion expressed by the Deputy Chief Chemist, Central Excise Laboratory who after studying the manufacturing process and ingredients used for the manufacture of 'Brahmi Oil' has opined that the product in question has Ayurvedic medicinal properties. He has also seen the clarification issued by the Board vide letter No. F. No. 103/1/88 -CX.3 dated 18.3.1988 that 'Ramtirth Brahmi Oil (thail)' has to be classified as an ayurvedic medicine and hence accepted the plea for classifying the item under heading 3003. He has noted that during July 1996, the Central Excise Tariff Structure of Chapter 30 underwent changes and has several sub -headings to heading 3003. He has noted that since 'Brahmi Oil' which is nothing but an ayurvedic medicine and that there is a specific heading for such ayurvedic medicine under sub -heading 3003.31 for the products manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940, the 'Ramtirth Brahmi Oil' which is nothing but ayurvedic medicine has to be classified under sub -heading 3003.31 as per Rule 5 of the Interpretation Rules is view of the fact that there is a specific entry for it which may read classification as such. However he has held that he is not inclined to discuss the issue of using the brand name of 'Ramtirth' owned by the assessee.

(2.) The revenue is aggrieved with this portion of the order wherein he has not given his opinion on the affixing of brand name 'Ramtirth' which according to the revenue disentitles the assessee from claiming the classification under heading 3003.31 which carries NIL rate of duty. It is stated that heading 3003.39 which is a residuary heading carrying 8% duty applies to the product on which the trade mark is affixed. It is prayed in the appeal that as the budgetary changes has incorporated the residuary entry after Budget 1994, therefore the assessee is not entitled to the benefit of Notification No. 8/94 dated 1.3.94 which supersedes the previous Notification No. 75/94 dated 29.3.94. It is stated that branded ayurvedic products do not get the benefit of Notification in terms of Budget 1996. It is stated that the item is sold with the brand name 'Ramtirth'. Therefore it falls under residuary heading 3003.39 as Patent and Proprietary Ayurvedic Medicaments and duty is required to be discharged.

(3.) We have heard DR Shri C.Mani and Shri K.S. Venkataramani, Consultant.