2004 (3) TMI 566 - AT - Central Excise

Summary

Issues Involved:
Whether M/s. Johri Digital Health Care Ltd. are eligible to avail the benefit of exemption Notification No. 21/2002-Cus.

Detailed Analysis:

1. Classification of Goods:
The issue in these appeals revolves around the classification of goods imported by M/s. Johri Digital Health Care Ltd. Specifically, the question is whether batteries, power cords, and battery chargers can be considered accessories of medical equipment under Notification No. 21/2002-Cus. The Commissioner (Appeals) allowed the benefit of the notification, considering these items as accessories. However, the Revenue argued that the goods were classified under Chapter 85 of the Customs Tariff Act, not Chapter 90, which made them ineligible for the exemption.

2. Definition of Accessories:
The definition of "accessories" under the Exim Policy, 2002-2007 was a point of contention. The Revenue contended that batteries and power cords do not qualify as accessories based on the definition provided in Para 9.2 of the policy. They highlighted inconsistencies in the respondent's claims regarding whether the goods were parts of their equipment or accessories, casting doubt on the eligibility for the exemption.

3. Applicability of Notification:
The crux of the matter was the applicability of Notification No. 21/2002-Cus. The Revenue argued that since the goods were classified under Chapter 85, they should not benefit from the notification meant for medical equipment and accessories falling under Chapter 90 or any other chapter. However, the Commissioner (Appeals) and the Advocate for the respondent contended that even if the goods were classified under Chapter 85, they should still be eligible for the concessional rate of duty under the notification.

4. Judicial Findings:
The Tribunal analyzed the arguments from both sides and found that the Deputy Commissioner had denied the benefit of the exemption solely based on the classification under Chapter 85 without providing any other substantial reason. The Tribunal agreed with the Advocate's assertion that the notification applied to medical equipment and accessories falling under Chapter 90 or any other chapter. They emphasized that mere classification under Chapter 85 should not disqualify the goods from the benefit of the notification. The Tribunal noted the lack of evidence from the Revenue to prove that the imported goods were not accessories of the medical equipment. Consequently, the appeals filed by the Revenue were rejected, upholding the decision of the Commissioner (Appeals) in favor of the respondent.

In conclusion, the Tribunal's judgment clarified the eligibility of M/s. Johri Digital Health Care Ltd. to avail the benefit of the exemption Notification No. 21/2002-Cus. based on the classification and definition of accessories, ultimately ruling in favor of the respondent due to the lack of substantial evidence from the Revenue to disqualify the imported goods as accessories of medical equipment.