2007 (8) TMI 140 - AT - Customs

Exemption Question arises whether appellant entitle for benefit of Notification 21/2002-Cus. even though not imported the laser camera and accessories along with the Helical/Spiral CT scanner Held yes,

Summary

Issues:
1. Denial of benefit of Notification No. 21/2002-Cus. to imported equipment "Helical/Spiral CT Scanner" due to non-importation of Laser Camera and accessories.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Bangalore stemmed from the denial of the benefit of Notification No. 21/2002-Cus. to a set of GE CT/E dual Spiral Computed Tomography (CT) Scanner System imported without a laser camera and its accessories. The Commissioner (A) had refused the benefit based on the sole ground that the item "Helical/Spiral CT Scanner" was not imported along with the required Laser Camera CT Scanner and accessories.

The appellant's counsel argued that the Laser Camera need not necessarily be imported for the benefit of the Notification to apply. It was contended that the Laser Camera is an accessory, and the Notification specifically aimed to grant exemption to the "Helical/Spiral CT Scanner," with the inclusion of the Laser Camera and accessories for clarification purposes. Reference was made to a Tribunal ruling in a similar context involving a different Notification, where the benefit was extended to the main equipment even when ancillary equipment was not imported.

Additionally, the counsel cited another case where Dialysis Solution Bags were imported without the tubing system specified in the Notification, leading to the denial of benefits by the Revenue. However, the Tribunal in that case overruled the Revenue's stance and granted the benefit to the main equipment covered by the Notification, despite the absence of the tubing system. These precedents were invoked to support the argument that the main item's eligibility for the Notification's benefit should not be contingent upon the importation of accessory equipment.

Upon careful consideration, the Tribunal found no dispute regarding the importation of the "Helical/Spiral CT Scanner," which was the equipment entitled to the Notification's benefit. While the Notification mentioned the possibility of importing the item with Laser Camera and accessories, the denial of benefits solely based on the non-importation of these additional components was deemed unjustified. Citing the Tribunal's previous rulings, the Tribunal concluded that as long as the main item qualified for the Notification's benefit, the same should be extended even if the accessory equipment was not imported. Accordingly, the impugned order was set aside, and the appeal was allowed with any consequential relief deemed necessary.