Case Law Details
In re Indranil Chatterjee (GST AAR West Bengal)
Introduction: In a recent decision by the Goods and Services Tax Appellate Authority for Advance Ruling (GST AAR) in West Bengal, the classification of Jac Olivol Body Oil under Indian customs law has come into focus. The central question revolves around whether the product should be categorized as a ‘medicament’ or a ‘cosmetic,’ thereby affecting its tax liability and regulatory requirements.
Core Issue: Medicament or Cosmetic?: The applicant, represented by their legal advocate, argued that Jac Olivol Body Oil primarily aims to cure dry skin, relieve body aches, and prevent blisters among other therapeutic uses. They claim that all the ingredients used meet the criteria set by the Ayurvedic pharmacopoeia and are approved by the Drug Controller.
Customs Tariff Act Classifications: Under the Central Excise Tariff Act, a product is classified as a medicament under Chapter 30 if it has therapeutic or prophylactic uses. On the other hand, cosmetics fall under Chapter 33 and cover preparations for skin care rather than treatment of ailments. The distinction hinges on the ‘use’ of the product and not its inherent properties.
Legal Precedents and Judgments: The applicant referenced various judgments, most notably a recent Supreme Court case where a product, Aswani Homeo Arnica Hair Oil, was classified as a ‘medicament.’ The court applied the ‘common parlance test’—how a product is generally understood by the public—to make its determination.
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