M/S. Naturalle Health Products (P) Ltd vs Collector Of Central Excise, Hyderabad

The Supreme Court addressed the classification of medicated cough drops and throat drops under the Central Excise Tariff, specifically under sub-heading 3003.30 for Ayurvedic Medicaments versus sub-heading 3003.10 for Patent or Proprietary Medicaments. The Court held that the products manufactured by the appellants, which were made in accordance with the Ayurvedic system, should be classified as Ayurvedic Medicaments, thereby attracting a nil rate of duty. The judgment emphasized the importance of proper classification under the Drugs and Cosmetics Act, 1940 and the Central Excise and Salt Act, 1944, ultimately ruling in favor of the appellants.