2005 (7) TMI 604 - AT - Central Excise

Summary

Issues: Classification under Chapter heading 90.18, Interpretation of Notification No. 10/2002, Exclusion clause in Explanation, Application of exemption notification, Grant of notification benefit under Entry at Sl. No. 43

The judgment by the Appellate Tribunal CESTAT, Mumbai, involved a dispute regarding the classification of Foley Balloon Catheters under Chapter heading 90.18 of the Tariff Act and the application of Notification No. 10/2002. The Tribunal noted that both the Appellants and the Department agreed on the classification under Chapter heading 90.18, making the catheters eligible for the concessional rate of duty under Serial No. 43 of the notification. The Tribunal emphasized that the benefit under Serial No. 43 is specific to goods falling under Chapter heading 90.18, overriding the general provisions of Serial No. 42. The principle that a specific entry prevails over a general entry was highlighted in the judgment.

Regarding the interpretation of the exclusion clause in the Explanation of Serial No. 42, the Tribunal clarified that the exclusion should be limited to Serial No. 42 and not extended to all entries in the notification. Citing previous judgments, the Tribunal emphasized that exemption notifications should be construed broadly once a good falls under a particular category. The Tribunal referred to specific cases like Union of India v. Wood Papers Ltd., Bombay Chemical Ltd v. Collector of Central Excise, and Collector of Central Excise, Bombay-I & Anr. v. M/s. Parle Exports (P) Ltd. to support this interpretation.

In conclusion, the Tribunal found no merit in denying the exemption benefits to Foley Balloon Catheters falling under heading 90.18 as per Serial No. 43 of Notification 10/2002. The Tribunal set aside the previous order and allowed the appeal based on the findings related to the correct application of the exemption notification and the specific classification under Chapter heading 90.18.