COMMR. OF C. EX. Vs. ECONOMIC PHARMACEUTICALS (P)

JUDGEMENT

(1.) THE Revenue is aggrieved by the order of the Collector of Central Excise (Appeals) who has accepted the respondents claim for classification of the product 'Stamifort Supreme Capsules' as Ayurvedic medicament under CET sub -heading 3003.30 chargeable to nil rate of duty. According to the Revenue, the product falls for classification under CET sub -heading 3003.10 as Patent or Proprietary Medicament chargeable to duty at the rate of 15% ad valorm.

(2.) NOTICE issued to the respondents has been returned undelivered. We find that the case has been coming up for hearing since March, 2000 and every time notice of hearing has been returned undelivered. Hence we see no reason to keep the matter pending any further. Therefore, we heard the learned DR and perused the records.

(3.) THERE is no definition of Ayurvedic medicines in the Central Excises and Salt Act, 1944. Section 3 of the Drugs and Cosmetics Act, 1944 defines Ayurvedic Medicines as one which "includes..and manufactured exclusively in accordance with the formula described in the Authoritative Books of Ayurvedic Medicines specified in the First Schedule". In the First Schedule, 54 books have been enumerated as Authoritative Ayurvedic texts. The respondents have admitted that the product in dispute contains one ingredient viz. 'Jumbedust' which is Unani in addition to Ayurvedic ingredient. They have also stated that it is not manufactured exclusively in accordance with a formula described in Authoritative books of Ayurvedic medicines but has been developed after research by Dr. Anil Korde of M/s. Emil Pharmaceuticals. There is no dispute that the medicine is a proprietory medicine, being sold in the brand name of 'Stamifort Supreme Capsules' referring to the name of the manufacturer.