2006 (2) TMI 307 - AT - Customs

Summary

Issues:
Import of Cardiac Vascular Angiography System with Microlab - Eligibility for exemption under Notification No. 17/2001-Cus.

Analysis:
The appeal was filed against Order-in-Original 47/2001, concerning the import of a Cardiac Vascular Angiography System along with a Microlab, claiming exemption under Notification No. 17/2001-Cus. The Revenue contended that the Microlab did not qualify for the exemption, leading to confiscation of goods, a redemption fine of Rs. 5 lakhs, and a penalty of Rs. 2 lakhs. The appellants challenged these decisions, arguing that the Microlab was an accessory to the Angiography system, essential for monitoring haemodynamic parameters during procedures.

The advocate for the appellants highlighted that the Microlab was crucial for monitoring parameters like blood pressure, oxygen saturation, and ECG during cardiac procedures. Referring to technical literature, it was argued that the Microlab was an integral part of the Angiography system, ensuring patient safety and effective diagnosis. Drawing parallels to a previous CEGAT decision, it was emphasized that accessories vital for the functioning of medical equipment should be considered eligible for exemption under the notification.

The Revenue, however, relied on a Supreme Court decision to support their stance that an attachment not capable of independent operation should not automatically qualify for exemption. They contended that the Microlab did not meet the criteria explicitly outlined in the exemption notification and therefore should not be granted the benefits sought by the appellants.

Upon careful examination of the case records and the functions of the Microlab, the Tribunal concluded that the equipment was indeed an accessory to the Cardiac Vascular Angiography System. The Microlab played a crucial role in monitoring haemodynamic parameters during procedures, ensuring patient safety and effective diagnosis. As such, the Tribunal allowed the appeal, granting the appellants the consequential relief they sought under Notification No. 17/2001-Cus.