2006 (2) TMI 470 - AT - Customs

Summary

Issues:
1. Claim for duty exemption on imported Latex under notification 23/98-Cus.
2. Interpretation of eligibility for duty exemption under Notification No. 23/98-Cus.
3. Applicability of previous notifications exempting diagnostic test kits as life-saving drugs.
4. Determination of whether the imported goods qualify as life-saving drugs or medicines.

Analysis:

1. The appellants imported Latex and claimed exemption under notification 23/98-Cus. The Asst. Collector of Customs denied the duty-free clearance, stating that the imported Latex was not eligible for the notification's benefits. The Commissioner (Appeals) upheld this decision, citing specific provisions of the notification regarding eligibility for duty exemption.

2. The Tribunal considered the previous notifications, such as Notification No. 208/81, which specifically covered Diagnostic Agents for detection of Hepatitis B Antigen as life-saving drugs. It was noted that subsequent notifications, including 23/94, 13/95, 36/96-Cus., 11/97-Cus., 23/98-Cus., and 20/1999-Cus., consistently exempted diagnostic test kits and bulk drugs used in their manufacture as life-saving drugs and medicines.

3. The Tribunal found merit in the appellants' argument that the goods in question, based on the Drugs and Cosmetics Act and industry understanding, are known and understood as life-saving drugs and medicaments. Despite the absence of a specific definition in the notification, the Tribunal concluded that the imported goods should be considered as known and understood life-saving drugs and medicines, thus qualifying for duty exemption.

4. Ultimately, the Tribunal ruled in favor of the appellants, stating that the imported goods, including the Diagnostic Test Kits, should be granted duty exemption as they are recognized as life-saving drugs and medicines. The import of such goods in bulk form was deemed eligible for the claimed heading, and the appeal was allowed accordingly.

This detailed analysis of the judgment highlights the key issues addressed by the Tribunal regarding the eligibility for duty exemption under the relevant notifications and the classification of the imported goods as life-saving drugs or medicines.