2015 (1) TMI 839 - AT - Customs

Import of Imaging Plate, IP Cassettes and FCR Capsula - Benefit of concessional rate of duty of 5% ad valorem under Serial No. 357B of Notification No. 21/2002-Cus dated 01/03/2002 - Classification under CTH 90189099 or under CTH 90229090 - Held that - Imaging plates is an alternative or a substitute for an X-ray film which is used commonly. As regards the classification of these goods, though the Tribunal classifies this item under heading 90189099, no reasoning has been given in the impugned order except stating that these are rightly classifiable under the said heading. This conclusion of the Tribunal prima facie does not appear to be correct for the reason that all photographic plates and film in the flat, sensitized, unexposed, of any material fall under CTH 3701. The benefit of exemption under Notification No. 21/2002-Cum dated 01/03/2002 would still be available as serial no. 357B covers accessories of goods required for medical, surgical, dental or veterinary use, falling under Chapter 90 or any other chapter. A camera or an X-ray machine is complete even without a film. Therefore, a film or an imaging plate would come under the category of accessories to a machine. Since the coverage under 357B includes all products falling under Chapter 90 or any other chapter, goods falling under CTH 3701 would also be eligible for the benefit of concessional rate of 5% advalorem under the aforesaid notification. Thus, IP and IP cassette, which is only a protective cover for the imaging plates would be eligible for the exemption. As regards the FCR Capsula it has already held by this Tribunal that the same falls under CTH 90229090/90221490 and will not be eligible for the exemption under the aforesaid notification. - IP Cassette and Imaging Plates would be eligible for the benefit of Notification No. 21/20029-Cus dated 01/03/2002 under Serial No. 357B (ii); FCR Capsula will not be eligible for the aforesaid exemption - Decided partly in favour of assessee.

Summary

Issues: Classification of Imaging Plates, IP Cassettes, and FCR Capsula under Customs Tariff Heading (CTH) and eligibility for concessional rate of duty under Notification No. 21/2002-Cus.

Analysis:
1. The appeal challenged an Order-in-Appeal that classified Imaging Plates, IP Cassettes, and FCR Capsula as part of an X-ray machine, denying the appellant the concessional duty rate of 5% ad valorem under Notification No. 21/2002-Cus.

2. The appellant argued that a previous Tribunal order classified Imaging Plates and IP Cassettes under CTH 90189099, making them eligible for the duty rate exemption. However, the FCR Capsula was deemed ineligible for the exemption.

3. The Revenue contended that Imaging Plates and IP Cassettes are integral to X-ray machines, essential for producing readable images, and thus not accessories eligible for the duty rate exemption.

4. The Tribunal analyzed the technical aspects of Imaging Plates, noting their role in computed radiography and their classification under CTH 3701. It determined that Imaging Plates and IP Cassettes, as accessories aiding machine efficiency, qualify for the duty rate exemption under Serial No. 357B of the notification.

5. Consequently, the Tribunal ruled that IP Cassette and Imaging Plates are eligible for the benefit under Notification No. 21/2002-Cus, while FCR Capsula does not qualify for the exemption, affirming the appeal in part.

In conclusion, the judgment clarified the classification of Imaging Plates and IP Cassettes as eligible for the concessional duty rate under the specified notification, based on their role as accessories to X-ray machines. The decision highlights the importance of technical understanding in determining customs classifications and duty exemptions, ensuring compliance with relevant regulations.