2006 (6) TMI 230 - AT - Customs

Summary

Issues:
Classification of "RUBY STAR SURGICAL LASER" under Heading 90.18 of Customs Tariff with the benefit of Notification No. 20/90-Cus. Sr. No. 271 or under Heading 8510.30 without the benefit of the notification.

Analysis:

Issue 1: Classification of the "RUBY STAR SURGICAL LASER"
The judgment deliberated on the classification of the imported "RUBY STAR SURGICAL LASER" under Heading 90.18 or Heading 8510.30 of the Customs Tariff. The importer claimed classification under Heading 90.18 with the benefit of Notification No. 20/90-Cus. Sr. No. 271. The tribunal examined the nature and functionality of the laser system, as described in the catalogue, emphasizing its use in hair removal and treatment of skin lesions. The tribunal noted that the system operates by destroying germ cells responsible for hair growth through laser energy absorption by melanin in hair shafts, resulting in effective hair reduction. The judgment highlighted the medical and surgical applications of the system, particularly in cosmetic surgery, distinguishing it from conventional hair removal methods like razors or creams.

Issue 2: Interpretation of Classification Entries
The judgment analyzed the relevant classification entries under Chapter 8510.30, which covers hair removing appliances with self-contained electric motors. The tribunal referred to the HSN notes under this heading, specifying that the classification encompasses appliances that mechanically uproot or shear hair, which was deemed inconsistent with the laser-based mechanism of the "RUBY STAR SURGICAL LASER." The tribunal concluded that the system's operation through laser heat to damage and vaporize hair roots did not align with the mechanical action required for classification under 8510.30. Instead, the tribunal found the classification under Heading 90.18 more appropriate, considering the system's medical and surgical use in cosmetic procedures and skin lesion removal.

Issue 3: Decision and Ruling
The tribunal rejected the lower authority's classification of the "RUBY STAR SURGICAL LASER" and set aside the impugned order. It directed the classification of the system under Heading 90.18 of the Customs Tariff, granting it the benefit of Notification No. 20/90-Cus. Sr. No. 271 as claimed by the importer. The tribunal upheld the importer's contention regarding the system's classification as a surgical appliance, emphasizing its medical and cosmetic surgery applications. The judgment concluded by allowing the appeal on the grounds of classification under Heading 90.18 with the benefit of the notification.

In summary, the appellate tribunal ruled in favor of classifying the "RUBY STAR SURGICAL LASER" under Heading 90.18 of the Customs Tariff, recognizing its medical and surgical applications in cosmetic procedures and skin lesion treatment, contrary to the classification under Heading 8510.30 based on the laser system's mechanism of operation.