V.P. Gulati, Member (T)

1. This is an appeal against the order of Collector of Central Excise (Appeals), Madras. Brief facts of the case are that the appellants manufacture a product described as Halls Ice mint Tablets and claim the assessment of the same under Tariff sub-heading 3003.30 as Ayurvedic medicine chargeable to nil rate of duty. These tablets contain the following ingredients:

1. Sucrose I.P.

2. Liquid Glucose

3. Menthol I.P. (mentioned on the label by the assessee as pudina)

4. Eucalyptus oil IP rectified (mentioned as Nilgirei Tailam on label)

5. Glycerin

6. Spearmint Oil

7. Tartrazine ISI

8. Brilliant Blue

9. Water potable

2. Earlier, the appellants had also filed a classification list of another product described as Halls Mentholyptus Tablets claiming assessment of the same under Tariff sub-heading 3003.19 chargeable @ 15%. The ingredients of the Halls Icemint Tablets and Mentholyptus Tablets appear to differ in respect of only colouring, material and flavouring, agents.

3. The respondents, before the lower authorities, pleaded that they were manufacturing a product Halls Icemint Tablets under a licence issued to them by the Director, Indian Medicines and Homoeopathy and claimed that taking into account the nature of the ingredients used, the same was correctly assessable as Ayurvedic medicine at nil rate of duty.

4. The Assistant Collector, however, held the goods to be assessable under 3003.19 chargeable @ 15%. The Collector (Appeals), however, on appeal by the respondents, allowed their plea for assessment of the goods as Ayurvedic medicine under Tariff sub-heading 3003.30. His findings in this regard are as under:

The point for determination is whether "Halls ICE Mint" Tablets are Ayurvedic medicine or P.P. Medicine. In the order, the Assistant Collector has stated that Director Indian Medicine and Homeopathy has issued licence for manufacture of the "Halls Ice Mint Tablets" but there is no evidence that the same are being used or marketed as Ayurvedic medicine. The appellants produced the packing for the said tablets, on which, it is clearly stated, that the contents of the tablet contains "Ayurvedic medicine". Further, they also produced a certificate from Dr. T. Sripathy Rao, Project Officer, Chemical Research Unit (Ayurveda), Central Council for Research in Ayurveda and Siddha (Government of India), Hyderabad, that the tablets are Ayurvedic medicine. Therefore, there is no doubt, that the Medicaments are used in Ayurvedic system, and accordingly, the classification claimed under Tariff sub-heading 3003.30 in correct and approved. The appeal is allowed for the above reason.

5. The revenue has appeal against this order of the Collector and have claimed that the said goods were neither the P.P. medicines nor Ayurvedic medicines falling under heading 17.04. The grounds of appeal are set out as under:

(1) The Collector of Central Excise (Appeals), Madras had erred in classifying HALLS ICE MINT TABLETS as an Ayurvedic Medicine falling under Chapter sub-heading 3003.30 of Central Excise Tariff Act, 1985 whereas the CORRECT classification would be under Tariff heading 17.04.

(2) The composition of the product is furnished as : (1) Sucrose I.P. (2) Liquid Glucose (3) Menthol I.P. (mentioned on the label by the assessee as pudina) (4) Eucalyptus Oil IP rectified (mentioned as Nilagiri Tailam on the label) (5) Glycerin (6) Spearmint Oil (7) Tartrazine ISI (8) Brilliant Blue (9) Water Potable. The ingredients are of common usage with no specific medicinal properties or therapeutic value.

(3) The product does not possess any medicinal or curative properties and is commonly used as mouth fresher or of the throat.

(4) Although menthol and eucalyptus are mentioned in the Ayurveda, the mere usage of these ingredients in a product does not render it as an Ayurvedic Medicine. (Shri Baidyanath Ayurveda Bhavan v. Collector of Central Excise, MANU/CE/0146/1985 : 1985 (22) ELT 175 (Tribunal).

(5) The licence issued by Director, Indian Medi