COMMISSIONER OF CENTRAL EXCISE, HYDERABAD versus M/S. SARVOTHAM CARE LIMITED

COMMISSIONER OF CENTRAL EXCISE, HYDERABAD versus M/S. SARVOTHAM CARE LIMITED

Nizral Shampoo is classifiable under CSH 3003.10 as a pharmaceutical product because its essential properties are medicinal, its use is restricted to prescription, and it is manufactured as a drug rather than a cleaning shampoo. Affidavits by doctors and warning labels reflect therapeutic use, thereby denying classification under preparations for use on hair.

Parties
Appellant: COMMISSIONER OF CENTRAL EXCISE, HYDERABAD; Respondent: M/S. SARVOTHAM CARE LIMITED
Jurisdiction
India
Judgment Date
14 May 2015
Procedural Posture
Civil Appeal / Appeal From Customs, Excise & Service Tax Appellate Tribunal, South Zonal Bench, Bangalore
Outcome
Appeals disposed of; Civil Appeal No. 4480 of 2005 is dismissed; Civil Appeal No. 5752 of 2015 is allowed.
Legal Topics
Classification Under Central Excise Tariff Act, Patent or Proprietary Medicament, Preparations for Use on the Hair, Excise Duty Rates
Central Excise Taxation Classification Under Central Excise Tariff Act Patent or Proprietary Medicament Preparations for Use on the Hair Excise Duty Rates

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Parties

COMMISSIONER OF CENTRAL EXCISE, HYDERABAD

Appellant

M/S. SARVOTHAM CARE LIMITED

Respondent

Procedural Posture

Civil Appeal / Appeal From Customs, Excise & Service Tax Appellate Tribunal, South Zonal Bench, Bangalore

Legal Issues

  1. 1 Whether 'Nizral Shampoo' is classifiable under CSH 3003.10 as 'pharmaceuticals product' or under CSH 3305.99 as 'preparation for use on hair' for the purposes of payment of central excise duty

Ratio Decidendi

Nizral Shampoo is classifiable under CSH 3003.10 as a pharmaceutical product because its essential properties are medicinal, its use is restricted to prescription, and it is manufactured as a drug rather than a cleaning shampoo. Affidavits by doctors and warning labels reflect therapeutic use, thereby denying classification under preparations for use on hair.

Court Disposition

Appeals disposed of; Civil Appeal No. 4480 of 2005 is dismissed; Civil Appeal No. 5752 of 2015 is allowed.

Orders

  • Judgment of Tribunal upheld classifying Nizral Shampoo under CSH 3003.10 as pharmaceutical product;
  • Order of High Court and respondent No.2 demanding differential duty is quashed.