Lyka Labs Limited Vs C.C.E. & S.T. (CESTAT Ahmedabad)
The CESTAT, Ahmedabad in Lyka Labs Limited v. C.C.E. & S.T.-SURAT-II [Exice Appeal No. 10218 of 2013 dated September 12, 2023] set aside the order passed by the Adjudicating Authority and held that, addition of non-active ingredients such as preservatives, would not change the classification of the product, if the active ingredients are ayurvedic in such case, the medicament is classifiable as ayurvedic medicament.
Facts:
M/s. Lyka Labs Limited (“the Appellant”) manufactured Sensur Rubefacient and Herbyl Skin ointment.
The Appellant contended that, the product is manufactured out of Ayurvedic ingredients which are specified in Ayurveda Grantha and the product is sold as Ayurvedic medicine.
The Appellant further contended that, the Drug Authority has given license to these medicines as Ayurvedic medicine that the goods are marketed as Ayurvedic medicine, therefore, the product is clearly an Ayurvedic medicine and the Appellant have correctly classified the product as Medicine under ayurvedic medicament classifiable under heading 3003.30.
Moreover, merely because some of the ingredients which are other than active ingredients like preservatives, excipients, binding agent carriers or vehicle or fillers etc., even not prescribed in Ayurvedic text would not render the product to be classifiable under heading 3003.10 (other than medicament).
Issue:
Whether inclusion of preservatives in ayurvedic medicine result in change in classification to other than medicament?
Held:
The CESTAT, Ahmedabad in Exice Appeal No. 10218 of 2018 held as under:
