The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Dhatri Brand Hair Care Herbal Oil” and “Dhatri Brand Massage Oil” are ayurvedic medicines.
In the instant case, the respondents M/s. Warrier’s Hospital & Panchakarma Centre are manufacturers of “Dhatri Brand Hair Care Herbal Oil” and “Dhatri Brand Massage Oil”.
The department took a view that the respondents have not obtained Central Excise Registration and have not maintained records and have not paid duty even after crossing the SSI exemption. It further demanded duty and penalty along with an order for confiscation of goods by classifying the products as ‘cosmetics.’
On appeal, the Similarly, the Commissioner (A) held that the products are ayurvedic medicines. He relied on the decisions of the Supreme Court in the case of Puma Ayurvedic Herbal Pvt. Ltd. Vs. CCE, Nagpur- 2006 where it was considered Ayurveda medicine.
Aggrieved by the order, the department approached the Tribunal.
The bench noted that in the case of Haridev Formulations, the job workers of the respondents, the same bench concluded that the products manufactured by the respondents fall under Chapter 30 of the Central Excise Tariff Act, 1986 as the Commissioner(A) has already examined and discussed the ingredients and ratio of various case law. In that case, it was observed at Para-4 that it appears that the Hair Oil with the different flavor and different components are manufactured by different companies. The matter has reached to the Supreme Court where the Hon’ble Supreme Court has decided in some cases in favor of the appellant and in some cases in favor of the Department.
The bench further noted the decisions in Dabur India Ltd. Vs. CCE, Jamshedpur wherein the Supreme Court has decided the matter in favor of the appellant and considered the Hair Oil as an Ayurvedic product.
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