Medicine or cosmetic?
The Supreme Court last week dismissed two appeals of Commissioner of Central Excise (West) challenging the ruling of the tribunal that the product 'Moisturex' is a medicament and not cosmetic or toilet preparation. It rejected the proposition of the excise authorities that even if cosmetic products, sold over the counter, contain certain subsidiary curative or prophylactic value, they are to be treated as cosmetics only. The pharmaceutical companies, on the other hand, pointed out that in the product literature, the cream is indicated for any dryness of skin associated with winter, fissure feet, cracked nipples, in the treatment of pathological dry skin conditions and also for dryness associated with leprosy and clofazimine. The court accepted the stand of the pharma companies, Ciens Laboratories and Time Pharma, and stated that the "mere fact that a product is sold across the counters and not under a doctor's prescription, does not by itself lead to the conclusion that it is not a medicament." The manufacturers were aggrieved because at the time of the demand by the revenue authorities, if a product is held to be medicament, the rate of duty was 15 per cent and, if not, 70 per cent.
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