COMMNR. OF CENTRAL EXCISE, SURAT vs M/S. ZANDU PHARMACEUTICAL WORKS LTD.

The Supreme Court addressed the classification of the product 'Alma Lio' under the Central Excise Tariff Act, 1985, determining that it should be classified under SH No.3305.10 as 'perfumed hair oil' rather than under SH No.3003.39 as an Ayurvedic medicament. The Court held that the manufacturing process and the nature of the ingredients indicated that the product was indeed a cosmetic, thus attracting a higher excise duty of 30% ad valorem. The appeal by the appellant was dismissed, affirming the Tribunal's decision to remand the matter for recomputation of excise duty.