Law:

Section:

Central Excises and Salt Act (I of 1944) ----S. 4 First Sched., Item 28 Preparation primarily a drug and registered as a medicine under Drugs Act of 1976 Does not go out of category of drugs for reason of its being also used as a cleaner or shampoo in certain circumstances Product's classification under item 28 of First Sched. to Act I of 1944 as an item of perfumery, cosmetics and toilet preparation, held, unjustified and product not liable to excise duty. JUDGMENT FAKHRUDDIN G. EBRA1iIM, J. The petitioners are the manufacturers of a drug known as PHISOHEX and the question for determination in this petition is whether this product can be classified as an excisable product under item 28 of the First Schedule to the Central Excises and Salt Act, 1944, which question has been answered in the affirmative in the order of the Deputy Collector, impugned in this petition. The said item 28 reads as follows:---- "Perfumery, Cosmetics and Toilet Preparations. Perfumery, cosmetics and toilet preparations, all sorts, whether medicated or otherwise, including soap not falling under item 29." 2. It is an admitted position that the product PHISOHEX is registered as a drug under the Drugs Act and when drugs were manufactured under generic name the product was known as "HEXACHLORO PHENS CREAM". The learned Deputy Collector in arriving at the finding that the product was a medicated shampoo relied on the report of the Chemical Analyst who described "PHISOHEX" as a white milky paste freely soluble in water and slightly acidic but was highly surface active with high foaming powders. The report further 'stated that this chemical product was having all the properties/traits of a detergent though containing 2.82% of "HEXACHLOROPHENE" as antibacterial agent. The Deputy Collector also relied on the literature accompanying the product in which instructions were given as to how the product can be used as a general cleaning agent and as a shampoo. 3. Mr. Mashir Pesh Imam, the learned counsel for the petitioners challenged the aforesaid finding of the learned Deputy Collector on the ground that what has to be determined in the primary use of the product and not that product was also…

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