Shampoo or Medicine? Shampoo manufactured by the assessee is basically a medicine - Supreme Court
Shampoo and toothpaste are not simply objects, which reach our heads and mouths. They can also be subjects reaching the Supreme Court.
Assessee manufactures 'Ketoconazole Shampoo' and 'Nizral Shampoo' which are sold in the bottles of 50 ml and 5 ml. Dispute is about the classification of the product for the purposes of payment of central excise duty. The assessee 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 CSH3305.99 as it perceives the product as 'preparation for use on hair'.
In a recent judgement, the Supreme Court observed, "product known as 'Nizral Shampoo' gives the nomenclature of the product as shampoo. However, the assessee claims that it is a patent or proprietary medicament as its essential characteristics is therapeutic in nature. The use is suggested only on the advice of a Doctor and there is a suggestion that Doctor should be consulted for any further information. The respondent has also provided the literature/material showing that dandruff is a disorder which affects the hairy scalp. It is generally triggered by a single celled organism which is kind of fungus, with scientific name 'Pityrosporum Ovale'. For treatment of this disease, Nizral Shampoo 2% (i.e. shampoo containing 2% 'Ketoconazole') is shown as 'a new medicine' use whereof cures clears a dandruff. It is suggested that it should be used once a week and on other days, normal shampoos may be used which clearly shows that 'Nizral Shampoo' is to be used like a medicine, unlike other normal Shampoos."