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Not for the sick

HUNY Herb, Churyum drops and Tazza were products of Kushal Confectionery and, in a case before the CEGAT, New Delhi, the company argued that these were ayurvedic medicaments. The Central Excise Department was, however, of the view that these were to be c lassified as sugar confectionery.

The Assistant Collector, CE, Jammu, had, after taking note of the Chemical Examiner's report (and one of the candies?), leaned towards the confectionery classification. The Commissioner (Appeals) concurred with the same and observed that the product nam es do not figure in ayurvedic texts, though the individual ingredients find such mention.

While Kushal could rue why the author(s) of the ayurvedic texts did not think of all possible brand names and include them _ as domain-squatters do in the dot-com world _ the Commissioner's observations have a few more interesting tidbits.

He said the product _ sold in kirana shops and not in chemist outlets _ was found to be consumed by persons for changing the taste of the mouth and not as a curative on the basis of prescription given by registered ayurvedic practitioners. And, the produ cts were taken not by sick persons but by ordinary persons in everyday use.

When was it last that you saw a really `ordinary' person?

Hard-soft equations

GLOBAL Sprint Fax (GSF) software was at the centre of study in the Sprint RPG case before the CEGAT, New Delhi. The company had imported GSF software and claimed classification under software. The Customs found that the imported goods were, in fact, hard disk drives (HDD).

The company argued that the software was loaded on the HDDs which are essentially storage units. Also, the price of HDD was less than that of the software. If the goods were to be taken to be a combination of two items, the value of software being more, the goods should be classified as software, stated RPG.

The Department contended that once the software was loaded on the HDD, it became an integral part of HDD.

Viewed mathematically the equations were like this: Software + hardware = software (according to RPG). Software + hardware = hardware (according to the Department). The ruling went in favour of the second equation.

Pity we do not have a third classification, an in-between ware!

A no-brand

IS `INDIAN Railways' a brand name? No, if you go by the Electrohms P Ltd case which the Madras CEGAT decided upon recently.

The company had manufactured certain machines for the Indian Railways for use on the tracks. The nameplate on the products carried the words `Indian Railways'. The Department sought to deny the company the benefit of SSI exemption stating that the engrav ing of the two words amounted to use of a brand name.

The Tribunal considered the rival submissions and ruled against the Department stating that the words indicated the owner of the goods. Viewed from the brand angle, it is quite disappointing, however, that the words are not seen as a brand but ``simple a lphabetical words''.

And, for the many who pilfer IR's property _ be it fan or fish-plate _ the words do not even indicate the owner.

Tailpiece

``I have prepared myself for the harsh Budget.''

``By buying things in advance?''

``No, I've booked a room in the hospital for 29th.''

_ D. Murali