Page 54 - GSTL_23rd July 2020_Vol 38_Part 4

J112 GST LAW TIMES [ Vol. 38
Classification of goods - Under Chapter 30 of Central Excise Tariff -
One essential factor is whether article is understood as pharmaceuti-
cal product in common parlance - However, quantity of medicament
used in particular product is not relevant - Normally, extent of use
of medicinal ingredients is very low because larger use may be
harmful for human body. [para 30]
Classification of goods - Determination of - It cannot be under re-
siduary entry in presence of specific entry, even if it requires prod-
uct to be understood in technical sense - Residuary entry can be tak-
en refuge of only in absence of specific entry. [para 33]
Words and Phrases - Therapeutic and prophylactic - As they are not de-
fined under tariff entry, reference can be made to their dictionary meaning -
They mean to prevent, guard against before - In medicine, it means protect-
ing/guarding against or preventing disease or preventive treatment against
diseases; serving to cure or heal; curative, concerned in discovering and ap-
plying remedies for diseases. [paras 16, 27]
In view of the above case law, specially the hand solution product for in Wock-
hardt’s case which treats hand solutions as medicament and your licence having
been granted by Ayush Department treating the product as Ayurvedic, on the ba-
sis of ingredients. The classification made by you appears to be correct, as the
product is Ayush approved. As far as Press Note dated 15-7-2020 of Ministry of
Finance is concerned, it may be noted that the same does not speak of tariff head-
ings but generally speaks about 18 per cent duty on hand sanitizers without specif-
ically dealing with Ayush approved hand sanitizers. Further, the observation con-
tained therein that such hand solutions/sanitisers are like detergents, etc. and are
not medicinal do not appear to be in consonance of with Wockhardt’s case where in
hand solution meant for killing germs predominantly were held to be prophylactic
and hence medicinal.

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GST LAW TIMES  23rd July 2020  54