CCE Vs. DABUR INDIA LTD.

JUDGEMENT

(1.) IN these two appeals, filed by the Revenue (Appeal No. E/808/2002 -C) and by M/s. Precise Laboratories Ltd. (Appeal No. E/2788/2002 -C, the common issue involved is whether "Lal Tail" is classifiable under Sub -heading No. 3003.30 of the Schedule to the Central Excise Tariff Act as an Ayurvedic Medicament or under Heading No. 33.04 as a preparation for care of skin.

(2.) BRIEFLY stated the facts are that M/s. Dabur India Ltd. manufacture "Lal Tail" which is cleared by them under Sub -heading 3003.39 of the Tariff as an Ayurvedic Medicament; that a show cause notice dated 12.8.99 was issued to them for classifying the same under Heading 33.04 and for demanding differential duty; that the Assistant Commissioner, under Adjudication Order No. 95/96 -2000 dated 2.5.2000 dropped the further proceedings; that Commissioner (Appeals) under Order -in -Appeal No. 547/2001 dated 3.12.2001 has upheld the Adjudication Order. Hence the Appeal by Revenue.

(3.) SHRI R.C. Sankhla, learned SDR, submitted that "Lal Tail" is nothing but a massage oil; that therapeutic property, if any, is only subsidiary one; that the product has been described on the label as "baby massage oil" and that "it maintains the tone of chest muscle"; that the impugned product does not treat the ailment or prevent diseases and accordingly it does not have therapeutic or prophylactic use; that no medical prescription by medical practitioner is required; that dosage is not prescribed and the product is used throughout the year, not for limited time; that the product is for massage of skin of babies/infants to promote growth and development of a child; that the product label also mentions that "also useful for infantile rickets"; that the word "also" emphasizes that this characteristic of Lal Tail is subsidiary in nature; that thus the packing label and literature supplied alongwith the product clearly indicates that the impugned product is used popularly as a baby massage oil and not for its medical properties, if any; that thus in popular meaning "Lal Tail" is not known as a medicine. He, further, submitted that as per Note 2 to Chapter 30 of the Tariff, "medicament" means goods for therapeutic and prophylactic use; that accordingly therapeutic and prophylactic use should be the main use and not subsidiary.