In Brief
A homeopathic hair oil product containing four homeopathic medicines (Arnica Montana, Cantharis, Pilocarpine, and Cinchona) was classified as a cosmetic under Chapter 33 rather than a medicament under Chapter 30 of the Central Excise Tariff Act, 1985. The Supreme Court held that the product should be classified as a medicament based on two tests: (1) the ingredients test—all component medicines are documented in the Homeopathic Pharmacopoeia of India; and (2) the common parlance test—the product is marketed and understood as a homeopathic medicine for treating scalp conditions. The expression "Hair Oil" merely indicates the medium of administration, not the product's fundamental nature. Tariff amendments in 2012, though broadening entries, did not justify re-classification when the product's composition and character remained unchanged since 1994. The appeal was dismissed.
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