- (1.) Civil Appeal No. 4480 of 2005 Respondent herein is the manufacture of 'Ketoconazole Shampoo' and 'Nizral Shampoo' which are sold in the bottles of 50 ml and 5 ml. Dispute is about the classification of the aforesaid product for the purposes of payment of central excise duty. The Respondent had filed the declaration classifying the said product under CSH 3003.10 of the Central Excise Tariff Act, 1985 on the ground that it is basically a medicine. However, as per the Appellant/Revenue, the appropriate classification of this product is under CSH 3305.99 as it perceives the product as 'preparation for use on hair'.
(2.) Chapter 30 under which CSH 3003.10 falls deals with Pharmaceuticals products and the aforesaid entry thereof reads as under: Patent or proprietary medicaments, other than those medicaments which are exclusively Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic. On the other hand, Chapter 33 deals with the products which fall under the nomenclature 'Essential Oils and Resinoids; Perfumery, Cosmetic or Toilet Preparation'. The entry CSH 3305.99 thereof is as under: Preparations for use on the hair * Perfumed hair oils * Other: * Hair fixer * Other
(3.) It becomes clear from the reading of the aforesaid two entries that the Respondent claims that the product in question belongs to the specie of Pharmaceutical products i.e. medicinal product and is covered by the expression 'patent or proprietary medicaments'. On the other hand, the case of the Revenue is that it is simply a shampoo which is to be used for cleaning hair and is nothing but a 'toilet preparation'. If the product is to be treated as Pharmaceutical product covered by Entry 3003.10, excise duty prescribed is 16%. The excise duty of goods covered by Entry 3305.99 is 24%.;