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Thursday, August 15, 2013

The Central Excise Tariff Act, 1985 (hereinafter referred to as ‘CETA’) under Chapter 30 of the Schedule (2) deals with pharmaceutical products for the purposes of tariff. At the relevant time, if a product is held to be medicament, then, the rate of duty was 15% and, if not, 70%. Heading 30.03 deals with the medicaments including veterinary medicaments. - ‘Care or cure’, is the clue for the resolution of the lis arising in these cases. If the product by name ‘Moisturex’ is held to be a medicament for cure, the decision goes in favour of the assessee and if the product is held to be one for care of the skin, the decision benefits the Central Excise. The Tribunal has held in favour of the assessee and, thus, the Central Excise is in appeals.= In the case of ‘Moisturex’, there is no dispute that the said cream is prescribed by the dermatologist for treating the dry skin conditions and that the same is also available in chemist or pharmaceutical shops in the market. The cream is not primarily intended for protection of skin. The ingredients in the cream, the pharmaceutical substances do show that it is used for prophylactic and therapeutic purposes. The Central Excise Tariff Act has unambiguously clarified as to what is a medicament for curing an ailment relating to skin. Heading 33.04 dealing with beauty or make-up preparations and preparations for the care of the skin has specifically excluded medicaments. There is also an indication under the same entry that medicinal preparations used to treat certain complaints are to be provided under the Heading 30.03 (medicaments) or 30.04 (products containing pharmaceutical substances used for medical, surgical, dental or veterinary purpose). 21. Tribunals, the Customs, Excise and Gold (Control) Appellate Tribunal,West Zonal Bench at Mumbai in the first case and Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench at Mumbai in the other, having regard to the pharmaceutical constituents present in the cream ‘Moisturex’ and its use for the cure of certain skin diseases, have rightly held that the same is a medicament liable to be classified under the Heading 30.03 (medicament). Thus, there is no merit in these appeals. They are accordingly dismissed. No costs.

                     published in http://judis.nic.in/supremecourt/filename=40649
   IN THE SUPREME COURT OF INDIA

                       CIVIL  APPELLATE  JURISDICTION

                        CIVIL APPEAL NO. 6988 OF 2003

Commissioner of Central Excise, Mumbai IV          … Appellant (s)

                                   Versus

M/s. Ciens Laboratories, Mumbai                    … Respondent (s)

                                    WITH

                        CIVIL APPEAL NO. 4434 OF 2004

Commissioner of Central Excise, Thane-II           … Appellant (s)

                                   Versus

M/s. Time Pharma, Mumbai                           … Respondent (s)


                               J U D G M E N T

KURIAN, J.:





1.     ‘Care or cure’, is the clue for the resolution of the lis arising  in
these cases. 
If the product by name ‘Moisturex’ is held to be  a  medicament
for cure, the decision goes in favour of the assessee and if the product  is held to be one for care of the  skin,  the  decision  benefits  the  Central Excise. 
The Tribunal has held in favour  of  the  assessee  and,  thus,  the Central Excise is in appeals.

2.    The Central Excise  Tariff  Act,  1985  (hereinafter  referred  to  as
‘CETA’) under Chapter 30 of  the  Schedule  (2)  deals  with  pharmaceutical
products for the purposes of tariff. At the relevant time, if a  product  is
held to be medicament, then, the rate of duty was  15%  and,  if  not,  70%.
Heading 30.03 deals with the medicaments including  veterinary  medicaments.
The same reads as follows:


|“Heading  |Sub-headi|Description of goods        |Rate of  |
|No.       |ng No.   |                            |duty     |
|(1)       |(2)      |(3)                         |(4)      |
|30.03     |         |Medicaments (including      |         |
|          |3003.10  |veterinary medicaments)     |15%      |
|          |         |-Patent or proprietary      |         |
|          |         |medicaments, other than     |         |
|          |         |those medicaments which are |         |
|          |         |exclusively Ayurvedic,      |         |
|          |         |Unani, Siddha, Homoeopathic |         |
|          |         |or Bio-chemic.”             |         |

3.    ‘Medicaments’ is defined under Note 2(i) under Chapter 30 which  reads
as follows:


      “2.   For the purposes of heading No. 30.03:
      (i)   ‘Medicaments’ means goods (other than foods or beverages such as
           dietetic, diabetic or  fortified  foods,  tonic  beverages)  not
           falling within heading No.30.02 or 30.04 which are either:-
           (a)   products comprising two or more  constituents  which  have
                 been  mixed  or  compounded  together  for  therapeutic  or
                 prophylactic uses; or
           (b)   unmixed products suitable for such uses put up in measured
                 doses or  in  packings  for  retail  sale  or  for  use  in
                 hospitals.”
                                                         (Emphasis supplied)


4.    ‘Patent or proprietary medicaments’ is defined under Note 2(ii)  which
reads as under:
      “2(ii)       ‘Patent or proprietary medicaments’  means  any  drug  or
      medicinal preparation, in whatever form, for use in  the  internal  or
      external treatment of, or for the  prevention  of  ailments  in  human
      beings or animals, which bears either on itself or 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 Formulary 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 a 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, label,  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.”



5.    The Chapter Note has explained Heading No.30.03 as under:

           “This heading covers  medicinal  preparations  for  use  in  the
      internal or external  treatment  or  prevention  of  human  or  animal
      ailments. These preparations are obtained by mixing  together  two  or
      more substances. However, of put up in measures doses or in  forms  or
      packings for retail sale, they fall in heading 30.04.




           The heading includes   :
      (1)   Mixed medicinal preparations such as those listed in an official
           pharmacopoeia, proprietary medicines, etc., including  those  in
           the  form  of  gargles,   eye   drops,   ointments,   liniments,
           injections, counter-irritant and other preparations not  falling
           in heading 30.02, 30.05 or 30.06.”

      Entry 33.04 dealing with cosmetics reads as follows:

|“Heading  |Sub-headi|Description of goods       |Rate of  |
|No.       |ng No.   |                           |duty     |
|(1)       |(2)      |(3)                        |(4)      |
|33.04     |3304.00  |Beauty or make-up          |70%      |
|          |         |preparations and           |         |
|          |         |preparations for the care  |         |
|          |         |of the skin (other than    |         |
|          |         |medicaments), including    |         |
|          |         |sunscreen and suntan       |         |
|          |         |preparations; manicure or  |         |
|          |         |pedicure preparations.”    |         |

      The Chapter Notes on this Entry has explained the products as under:
      “33.04 -    BEAUTY OR MAKE-UP PREPARATIONS AND    PREPARATIONS FOR THE
                 CARE  OF  THE  SKIN  (OTHER  THAN  MEDICAMENTS),  INCLUDING
                 SUNSCREEN OR SUN TAN  PREPARATIONS;  MANICURE  OR  PEDICURE
                 PREPARATIONS.
                  3304.10 -  Lip make-up preparations.
                  3304.20 -  Eye make-up preparations.
                  3304.30 -  Manicure or pedicure preparations.
                            -      Other      :
                  3304.91 - -      Powders,     whether      or         not
                                               compressed.
                  3304.99 - -      Other
              A) BEAUTY OR MAKE-UP PREPARATIONS  AND  PREPARATIONS  FOR  THE
                 CARE  OF  THE  SKIN,  INCLUDING  SUNSCREEN   OR   SUN   TAN
                 PREPARATIONS
                 This part covers:
              1) Lipsticks and other lip make-up preparations.
              2) Eye shadow, mascara, eyebrow pencils and other eye  make-up
                 preparations.
              3) Other beauty or make-up preparations and  preparations  for
                 the care of the skin (other  than  medicaments),  such  as:
                 face powders (whether  or  not  compressed),  baby  powders
                 (including talcum powder, not mixed, not perfumed,  put  up
                 for retail sale), other powders and grease  paints;  beauty
                 creams, cold creams, make-up creams, cleansing creams, skin
                 foods (including those containing bees’  royal  jelly)  and
                 skin tonics or body lotions; petroleum  jelly,  put  up  in
                 packings of a kind sold by retail for the care of the skin;
                 barrier creams to give protection against  skin  irritants;
                 anti-acne preparations (other than soaps of heading  34.01)
                 which are designed primarily to cleanse the skin and  which
                 do  not  contain  sufficiently  high   levels   of   active
                 ingredients to be regarded as having a primary  therapeutic
                 or prophylactic effect against acne; toilet vinegars  which
                 are mixtures  of  vinegars  or  acetic  acid  and  perfumed
                 alcohol.
                       Sunscreen or sun tan preparations are also included.


              B) MANICURE OR PEDICURE PREPARATIONS


                 This  part  covers  nail  polishes,  nail  varnishes,  nail
                 varnish removers, cuticle removers and  other  preparations
                 for use in manicure or pedicure.
                 The heading does not cover:
                 (a)   Medicinal preparations used  to  treat  certain  skin
                       complaints, e.g., creams for the treatment of  eczema
                       (heading 30.03 or 30.04).
      (b)   Foot deodorants and preparations for treating nails or claws  on
      animals (heading 33.07).”
                                                         (Emphasis supplied)
6.    Entry 30.04 reads as follows:
|“Heading  |Sub-headi|Description of goods     |Rate of duty   |
|No.       |ng No.   |                         |               |
|(1)       |(2)      |(3)                      |(4)            |
|30.04     |3004.00  |Wadding, gauze, bandages |15%            |
|          |         |and similar articles (for|               |
|          |         |example, dressings,      |               |
|          |         |adhesive plasters,       |               |
|          |         |poultices), impregnated  |               |
|          |         |or coated with           |               |
|          |         |pharmaceutical substances|               |
|          |         |or put up in forms or    |               |
|          |         |packings for medical,    |               |
|          |         |surgical, dental or      |               |
|          |         |veterinary purpose.”     |               |


7.     The  pharmaceutical  contents  of  the  product  ‘Moisturex’  are  as
follows:
      “Urea I.P.                   -10%
        Propylene Glycol I.P.           -10%
        Lactic Acid I.P.                -10%
        Liquid Paraffin I.P.       -10%
        Cream Base.”




8.    It is the contention of the learned counsel for  the  Central  Excise-
appellants herein that the product ‘Moisturex’ is mainly used  for  care  of
the skin and  thus,  they  are  to  be  classified  as  cosmetic  or  toilet
preparations and are to be  treated  under  Heading  33.04.  It  is  further
contended that even if such cosmetic  products  contain  certain  subsidiary
pharmaceutical contents or even if they have certain subsidiary curative  or
prophylactic value, still, they are to be treated as cosmetics only.  It  is
also contended that the product is sold across or under the counter and  the
same can be purchased without prescription of  a  medical  practitioner  and
hence it is not medicament.
9.    On the other hand, it is submitted on behalf of the assessee that  the
very presence of pharmaceutical substances will change the identity  of  the
product since such constituents are used not for care of the  skin  but  for
cure of certain diseases relating to skin. The container of the product  has
given the following indications for use:

      “Ichthyosis vulgaris, Fissure foot, Dry Scaly Skin conditions”


10.   In the product literature, the cream is indicated for any  dryness  of
skin  associated  with  winter,  fissure  feet,  cracked  nipples,  in   the
treatment  of  pathological  dry  skin  conditions  and  also  for   dryness
associated  with  leprosy  and  clofazimine.  Detailed  discussion  on   the
pharmaceutical content and its use for treatment of dry skin  conditions  of
human skin is given at Paragraph 12  in  Time  Pharma  vs.  Commissioner  of
Central  Excise,  Mumbai-II[1],  wherein  the  Customs,  Excise   and   Gold
(Control) Appellate  Tribunal,  West  Zonal  Bench,  Mumbai  held  that  the
product is a medicament. Since there is no dispute as to the description  of
the product, the contents and the usage, we shall extract paragraph 12: -

      “12. It is further stated that the product literature is given for use
      by  medical  practitioners.  This  gives  the  pharmacology   of   the
      ingredients in the product; under the heading, "Indications &  usage",
      it is stated that Moisturex cream is  indicated  in  dryness  of  skin
      associated  with  winter,  fissure  feet,  cracked  nipples,  in   the
      treatment of pathological dry skin conditions like ichthyosis  and  it
      is also indicated in dryness associated with leprosy and  clofazimine.
      It contain a precaution  and  warning  against  application  in  large
      quantities as it  contains  keratolytic  moisturing  agent  that  have
      potential to cause irritation and stinging sensation; it is not to  be
      used near eyes and mucous membranes. The dosage and administration  is
      indicated  that  thin  layer  of  the  cream  should  be  applied   to
      the affected area (emphasis supplied) once or twice daily and in  case
      of  severe  dry  skin  conditions  three  times  application  may   be
      required.”
                                                         (Emphasis supplied)

It is brought to our notice that the said  decision  has  attained  finality
qua the assessee therein since the  Special  Leave  Petition  filed  by  the
Central Excise was dismissed.

11.   In the Chapter Note dealing with cosmetics,  it  is  clearly  provided
that the preparations for the care of skin, beauty or  make-up  preparations
are the ones covered by the Heading 33.04 for the  care  of  the  skin.  The
Note has specifically excluded medicaments. Still further,  in  the  Chapter
Note  under  Heading  33.04(B)  also,  it  is   clarified   that   medicinal
preparations used to treat certain skin complaints are to be  covered  under
the Heading  30.03  (medicaments)  or  Heading  30.04  (products  containing
pharmaceutical substances used for medical, surgical, dental  or  veterinary
purposes).

12.   Thus, if a product comprises of two or more  constituents  which  have
been mixed or compounded together for therapeutic or prophylactic  use,  the
same is to be covered by Heading 30.03. Urea, lactic acid, propylene  glycol
are pharmaceutical constituents as per as Indian Pharmacopoeia.

13.   The contention that ‘Moisturex’  is  a  moisturizing  cream  used  for
softening the skin cannot be appreciated. As we have already discussed,  the
use of the cream is not for the care of the skin. ‘Moisturex’  is  also  not
primarily intended to protect the skin from sun, tan  or  dryness,  etc.  On
the other hand,  it  is  intended  for  treating  or  curing  the  dry  skin
conditions of the human skin and  for  a  few  other  skin  complaints  like
fissure feet, dry scaly  skin  conditions,  ichthyosis,  etc.  The  argument
advanced on behalf of the Central Excise that use of urea or lactic acid  or
propylene glycol, etc., is only as  subsidiary  pharmaceutical  constituents
and, hence, they cannot be held  out  as  having  curative,  therapeutic  or
prophylactic value, cannot also be appreciated. It is the  presence  of  the
ingredients of the pharmaceutical constituents which  makes  the  difference
and not the percentage of the ingredients as held by this Court in  Meghdoot
Gramodyog Sewa Sansthan vs. Commissioner of Central Excise,  Lucknow[2].  It
was held that the composition and the curative  properties  would  make  the
difference  in  the  classification.  If  the   product   is   composed   of
pharmaceutical constituents which have curative properties, the  product  is
to be classified as medicament. To quote:

      “6.   The appellant has drawn our attention to the composition of  the
      six products and the uses in respect of each of  these  six  products.
      This  has  not  been  doubted  by  the  Tribunal  nor  indeed  by  the
      Departmental authority. The composition and  the  curative  properties
      being admitted, it was not  open  either  to  the  Department  or  the
      Tribunal to hold that the items were cosmetics merely by reason of the
      outward packing.”
                                                         (Emphasis supplied)



14.    Another contention advanced by the appellant-Central Excise  is  that
the product is sold not under any  medical  prescription  but  the  same  is
available across or under  the  counter  and,  hence,  the  same  cannot  be
treated as medicament. This contention also has been rejected by this  Court
in Commissioner of Central Excise, Calcutta vs.  Sharma  Chemical  Works[3].
To quote:




      “12. … Mere fact that a product is sold across the  counters  and  not
      under  a  Doctors  prescription,  does  not  by  itself  lead  to  the
      conclusion that it is not a medicament.  We are also in agreement with
      the submission of Mr. Lakshmikumarn that merely because the percentage
      of medicament in a product is less, does also ipso facto mean that the
      product is not a medicament. Generally the percentage or dosage of the
      medicament will be such as can be absorbed  by  the  human  body.  The
      medicament would necessarily be covered by fillers/vehicles  in  order
      to make the product usable.  It could  not  be  denied  that  all  the
      ingredients used in Banphool Oil are those which are set  out  in  the
      Ayurveda text books.  Of course the formula may not be as per the text
      books but a medicament can also be under  a  patented  or  proprietary
      formula. The main criteria for determining classification is  normally
      the use it is put to by the customers who use it. ...”

                                                         (Emphasis supplied)





15.   In Puma Ayurvedic Herbal (P) Ltd. vs. Commissioner of Central  Excise,
Nagpur[4], it was held that the purpose of cosmetic product  is  to  improve
the appearance of a person and for enhancing the beauty whereas a  medicinal
product or medicament is meant to treat some medical condition. It was  also
held  that  merely  because  a  product  is  sold  not  under   a   doctor’s
prescription, the same does not cease to be  a  medicament.  In  both  these
cases, it was held that minimal  presence  of  medicinal  element  does  not
detract the product from being classified as a medicament. To quote:


      “20. It will be seen from the above definition of  cosmetic  that  the
      cosmetic products are meant to improve appearance of  a  person,  that
      is, they enhance beauty. Whereas a medicinal product or  a  medicament
      is meant to treat some medical condition. It  may  happen  that  while
      treating a particular medical problem, after the problem is cured, the
      appearance of the person concerned may improve. What is to be seen  is
      the primary use of the product. To illustrate, a particular  Ayurvedic
      product may be used for  treating  baldness.  Baldness  is  a  medical
      problem. By use of the product if a person is able to grow hair on his
      head, his ailment of baldness is cured and the person's appearance may
      improve. The product used for  the  purpose  cannot  be  described  as
      cosmetic simply because  it  has  ultimately  led  to  improvement  in
      appearance of the person. The primary role of the product was to  grow
      hair on his head and cure his baldness.
      21. The extent or the quantity of  medicament  used  in  a  particular
      product will also not be a relevant factor. Normally,  the  extent  of
      use of medicinal ingredients is very low because a larger use  may  be
      harmful for the human body. The medical  ingredients  are  mixed  with
      what is in the trade parlance called fillers, or vehicles in order  to
      make the medicament useful. To illustrate an example of Vicks  Vaporub
      is given in which 98% is said to be paraffine wax, while the medicinal
      part i.e. Menthol is only 2%.  Vicks  Vaporub  has  been  held  to  be
      medicament by this Court in CCE v. Richardson Hindustan Ltd. 1989 (42)
      ELT A100. Therefore, the fact that  use  of  medicinal  element  in  a
      product was minimal does not detract from it  being  classified  as  a
      medicament.
      22. In order to be a medicinal preparation or a medicament it  is  not
      necessary that the item must be sold under  a  doctor's  prescription.
      Similarly availability of the products across the counter in shops  is
      not relevant as it makes no difference either way.”
                                                         (Emphasis supplied)




16.  In Union of India vs. G. D.  Pharmaceutical  Limited[5],  the  Calcutta
High Court considered the question as  to  whether  the  product  ‘Boroline’
containing boric acid with zinc oxide would be a medicament or cosmetic.  It
was held that the very presence  of  the  pharmaceutical  constituents  like
boric acid  and  zinc  oxide  will  make  the  product  medicament  and  not
cosmetic. We are in respectful agreement with the views taken in the  above-
mentioned decisions.

17.   We  shall  also  refer  to  the  decision  in  Alpine  Industries  vs.
Collector of Central Excise, New Delhi[6],  wherein  this  Court  despite  a
certificate from Army that the cream ‘Lip Salve’ is used  for  treatment  of
sore, inflamed, roughened and cracked lips, declined to include the same  in
the category of medicament. It has been found that the product is meant  for
the  care  of  the  lips  and  not  for  the  cure  of  the  skin,  being  a
protective/preventive preparation for chapping of  lips  though  it  has  an
incidental use on cracked and chapped lips. To quote:




      “7. We have gone through the  pharmaceutical  and  medical  literature
      produced before us in the course of hearing and which  has  been  duly
      dealt with by the Tribunal in its minority and majority  opinion.  The
      certificate  issued  by  the  Army  Authorities   and   the   chemical
      ingredients of the  product  are  not  decisive  on  the  question  of
      classification of the product for levy of excise duty.  It  is  firmly
      established that on the question of classification  of  product  under
      Central Excise Tariff Act, "commercial  parlance  theory"  has  to  be
      applied. It is true that the entire supply by  the  appellant  of  its
      product 'Lip Salve' has been to the  Defence  Department  for  use  of
      military personnel but that would also not  be  determinative  of  the
      nature of the product for classifying it. It is not disputed that  the
      product 'Lip Salve' is used for the care of the lips. It is a  product
      essentially for "care of skin" and not for  "cure  of  skin".  It  is,
      therefore, classifiable as a skin care cream  and  not  a  medicament.
      From the nature of the product and the use to which it is put,  we  do
      not find that the claim of the appellant  is  acceptable  that  it  is
      primarily for therapeutic use. What we find from the material produced
      before  the  Tribunal  is  that   essentially   the   product   is   a
      protective/preventive preparation for chapping of lips. It  is  not  a
      curative product maybe that incidentally on cracked and chapped  lips,
      it has some curative effect. It is also not denied  that  the  product
      'Lip Salve' is not suitable for use only  for  soldiers  operating  in
      high altitude areas but it is of use for every one as protection  from
      dry, cold weather or sun rays. The product, therefore, essentially  is
      protective of  skin  of  lip.  It  is  lip  care  product  and  not  a
      'medicament'. It is neither prescribed by any  doctor  nor  obtainable
      from the Chemist or Pharmaceutical shops in the market.”
                                                         (Emphasis supplied)



18.   Similarly, in  Sunny  Industries  Private  Limited  vs.  Collector  of
Central Excise, Calcutta[7], while considering the question  as  to  whether
the Ad-vitamin Massage Oil forte could be medicament, it has been held  that
the same not being used for cure of skin but for care of skin, it  can  only
be classified under 33.04 as a skin care oil. To quote:

      “11. From the aforesaid Chapter notes, it is clear that heading  33.03
      would  include  products  whether  or  not  they  contain   subsidiary
      pharmaceutical or antiseptic constituents, or are held out  as  having
      subsidiary curative or prophylactic  value  and  heading  33.04  would
      inter  alia  include  the  products  specified   therein   and   other
      preparations for use in manicure or chiropody and  barrier  creams  to
      give protection against skin irritants. Therefore, the product  mainly
      oil containing some A&D vitamins which is used for massage, even if it
      prevents ailment of rickets and treats the same, it cannot be held  to
      be medicaments.”
                                                         (Emphasis supplied)

19.    Thus,  the  following  guiding  principles  emerge  from  the   above
discussion. Firstly, when  a  product  contains  pharmaceutical  ingredients
that  have  therapeutic  or  prophylactic  or   curative   properties,   the
proportion of such ingredients  is  not  invariably  decisive.  What  is  of
importance is the curative attributes of such ingredients  that  render  the
product a medicament and not a cosmetic. Secondly, though a product is  sold
without a prescription of a medical practitioner, it does not  lead  to  the
immediate conclusion that all products that  are  sold  over  /  across  the
counter are cosmetics. There are several products that  are  sold  over-the-
counter and are  yet,  medicaments.  Thirdly,  prior  to  adjudicating  upon
whether a product is a medicament or  not,  Courts  have  to  see  what  the
people who actually use the product understand  the  product  to  be.  If  a
product’s  primary  function  is  “care”  and  not  “cure”,  it  is  not   a
medicament. Cosmetic products are used in enhancing or improving a  person’s
appearance or beauty, whereas medicinal products are used to treat  or  cure
some medical condition. A product that is used mainly in curing or  treating
ailments or  diseases  and  contains  curative  ingredients  even  in  small
quantities,     is     to     be     branded      as      a      medicament.






20.   In the case of ‘Moisturex’, 
there is no dispute that  the  said  cream
is prescribed by the dermatologist for treating the dry skin conditions  and that the same is also available in chemist or pharmaceutical  shops  in  the market. 
The cream is not primarily intended  for  protection  of  skin.  
The ingredients in the cream, the pharmaceutical substances do show that  it  is used for prophylactic and therapeutic purposes. 
The  Central  Excise  Tariff
Act has unambiguously clarified as to what is a  medicament  for  curing  an ailment relating to skin. 
Heading  33.04  dealing  with  beauty  or  make-up
preparations and preparations for the care  of  the  skin  has  specifically excluded medicaments. 
There is also an indication under the same entry  that
medicinal preparations used to treat certain complaints are to  be  provided under  the  Heading  30.03  (medicaments)  or  30.04  (products   containing pharmaceutical substances used for medical, surgical, dental  or  veterinary purpose).

21.   Tribunals, the Customs, Excise and Gold (Control) Appellate  Tribunal,West Zonal Bench at Mumbai  in  the  first  case  and  Customs,  Excise  and Service Tax Appellate Tribunal, West Zonal Bench at  Mumbai  in  the  other, having regard to  the  pharmaceutical  constituents  present  in  the  cream
‘Moisturex’ and its use for the cure of certain skin diseases, have  rightly
held that the same is  a  medicament  liable  to  be  classified  under  the Heading 30.03 (medicament). 
Thus, there is no merit in these  appeals.  They are accordingly dismissed. No costs.


                                                 ....……...……………………………..………J.
                                               (SUDHANSU JYOTI MUKHOPADHAYA)



                                                  ....……..…………………………………..…J.
                                                 (KURIAN JOSEPH)
New Delhi;
August 14, 2013.

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[1]    1998 (99) E.L.T. 643 (Tri. Mumbai)
[2]    (2004) 174 E.L.T. 14 (S.C.)
[3]    2003 (154) E.L.T. 328 (S.C.)
[4]    2006 (196) E.L.T. 3 (S.C.)
[5]    1998 (100) E.L.T. 24 (Cal.)
[6]    2003 (152) E.L.T. 16 (S.C.)
[7]    2003 (153) E.L.T. 259 (S.C.)

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                                                                  REPORTABLE


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