2003 (2) TMI 263 - AT - Central Excise

Summary

Issues involved: Classification of products under Heading No. 90.18 or 84.19 of the Schedule to the Central Excise Tariff Act for instruments and appliances used in medical science or machinery, plant, or laboratory equipment for the treatment of materials by a process involving a change of temperature.

Analysis:
1. The appellant contended that the products manufactured, such as Incubators, are crucial in medical research and used in laboratories for various tests, falling under Heading 90.18. They argued that specific exclusions in the tariff act prevent classification under Chapter 84 for products under Chapter 90. Emphasizing the importance of medical instruments, the appellant sought classification under Heading 90.18, claiming exemption under SSI Notification due to their clearances' value.

2. The respondent argued that all products, including Incubators, are used for treating materials by processes involving temperature change, thus classifiable under Heading 84.19. Referring to HSN Explanatory Notes, they highlighted that such equipment falls under Heading 84.19, irrespective of medical use. The respondent contested the appellant's reliance on exclusions, stating that the functions of the goods align with Heading 84.19's scope, warranting classification under that heading.

3. The Tribunal examined both arguments and noted that the goods in question are indeed used for treating materials by temperature change processes. Referring to the HSN Explanatory Note, the Tribunal clarified that Heading 84.19 covers machinery designed for temperature changes, except instruments for medical sciences. They emphasized that once a product involves temperature changes, it falls under Heading 84.19, regardless of its medical use. The Tribunal remanded the matter to the Adjudicating Authority to assess SSI Notification eligibility, concluding that the products are appropriately classified under Heading 84.19.

In conclusion, the judgment resolved the classification issue by determining that the products manufactured by the appellant, despite their medical significance, are appropriately classified under Heading 84.19 for machinery designed for temperature-related processes. The Tribunal highlighted the distinction between medical instruments and equipment for temperature treatment, emphasizing that the latter falls under Heading 84.19. The matter was remanded for further assessment of SSI Notification eligibility, providing a comprehensive analysis based on the Central Excise Tariff Act and relevant HSN Explanatory Notes.