2010 (6) TMI 418 - AT - Customs

Exemption - Electro-surgical Generator describes such apparatus as one which utilizes high frequency electric current, the needle, probe etc. forming one of the electrodes - Diathermy is a form of heat treatment using high frequency electromagnetic currents. These cause molecules in deep tissues to vibrate, heating the issues and increasing the blood flow to them, thus speeding up the recovery Since goods are used surgically, they are different from daithemy equipments which are non-invasive Exemption available only to diathermy apparatus Benefit cannot be extended to electrosurgical apparatus

Summary

Issues: Eligibility of exemption under Notification No. 17/2001-Cus. for "Electro-surgical equipment" and "Cardiac Stents."

Analysis:
1. Electro-surgical equipment: The issue in Appeal No. C/376/2003 was whether the benefit of exemption under Notification No. 17/2001-Cus. could be extended to "Electro-surgical equipment" imported by the assessee. The Commissioner (Appeals) rejected the claim for exemption, distinguishing between diathermy apparatus and electro-surgical apparatus. The Tribunal upheld this decision based on the technical differences between the two types of equipment. The Tribunal noted that diathermy apparatus is non-invasive and used for heat treatment, while electro-surgical apparatus is used for surgical purposes with high-frequency electric currents. Therefore, as the exemption was available only for diathermy apparatus, the benefit could not be extended to the electro-surgical apparatus. Hence, Appeal No. C/376/2003 was dismissed.

2. Cardiac Stents: The issue in Appeal No. C/24/2004 was regarding the eligibility of the benefit of exemption under Notification No. 17/2001-Cus. for "Cardiac Stents" imported by the assessee. The Tribunal referred to a previous decision where it was established that cardiac stents are essential for the treatment function of endoscopes and are to be considered as accessories of cardiac catheters. Relying on this precedent, the Tribunal upheld the decision to grant exemption to cardiac stents. Therefore, Appeal No. C/24/2004 was decided in favor of the importers.

3. Operative part of the order: Both appeals were dismissed, and the cross-objection filed by the assessees was also dismissed as it was considered to be only in the nature of comments or a reply to the Revenue's appeal. The Tribunal pronounced the operative part of the order on 15-6-2010.

In conclusion, the Tribunal upheld the denial of exemption to electro-surgical equipment while granting exemption to cardiac stents based on the technical distinctions and previous decisions.