Dharmadhikari, J. - (1.) The present two appeals have been preferred under Section 35L(b) of the Central Excises and Salt Act, 1944 against the three member Judgment [reported in 1997 (92) ELT 53 (Tribunal)] of the Customs, Excise and Gold (Control) Appellate Tribunal [for short CEGAT], Principal Bench C, New Delhi. The Tribunal by majority opinion of two against one held against the appellant that its manufactured product with trade name Lip Salve is classifiable for payment of excise duty under Heading 33.04 of the Central Excise Tariff Act, 1985 [hereinafter referred as Act] as a preparation for care of skin and not as a medicament under Heading 30.03 of the Act.
(2.) The minority view expressed by one Member of the Tribunal in favour of the appellant is that its manufactured product Lip Salve is classifiable as medicament under Chapter 30.03 of the Act although the sub-classification is required to be re-determined by remanding the case to the Assistant Collector of Central Excise.
(3.) In the impugned order of the Tribunal, the chemical composition of the product, the manner in which it is marketed and supplied as also its common parlance meaning have all been examined. For deciding these appeals, it is sufficient for us to explain the nature of the product for examining the correctness of the finding reached by the Tribunal. The learned counsel appearing for the appellant very strenuously supported the minority view of the Tribunal. By taking us through the medical literature on the subject, it is stressed that the product is supplied for use of soldiers posted in high altitude areas. It is a medicament for treatment of sore, inflamed, roughened and cracked lips. The product is manufactured in accordance with Defence Services Specifications. Its ingredients are white bees wax, white soft paraffin, liquid paraffin, lanolin - all ingredients conforming to I.P. Grade ; Cetyl Alcohol C.P. Grade. The other ingredients are Stabliser and perfume. It is pointed out from 1923 Edition of British Pharmaceutical Codex that the chemical combination prescribed in British Pharmacopoeia has ben changed for making it suitable for use of defence personnel in India and especially those posted in high altitude areas. On this basis, it is contended that the product supplied exclusively to Defence Department for use of military personnel posted in high altitude areas is a medicament and not merely a skin care preparation. It is classifiable as medicament under Chapter 30.03 of the Act.;