2008 (2) TMI 255 - AT - Customs

Appellants filed B/E for clearance of disposable ECG Electrodes claiming the benefit of exemption from duty(Nil rate of duty) as accessories to Defibrillator for internal use - it has been certified that ECG Electrodes can be used both with D.C. Defibrillator for external use as well as for internal use - Notification in question covers accessories & parts of D.C. Defibrillator for internal use there is merit in the importers claim - hence hold that the benefit Not. 17/2001 is available

Summary

Issues: Classification of goods for duty exemption as per customs notification.

In the judgment by the Appellate Tribunal CESTAT MUMBAI, the appellants filed a Bill of Entry claiming duty exemption for 'disposable ECG Electrodes' as "accessories to Defibrillator for internal use" under a specific customs notification. The authorities below denied the exemption, stating that the goods were part of an ECG Monitor/recorder, not the Defibrillator covered by the notification. The Tribunal noted that disposable electrodes are standard accessories for the specific model of defibrillator in question, designed for quick reset recovery during defibrillator discharge. The Head of Cardiology Department certified that these electrodes are used to monitor electrocardiogram and synchronize shocks, applicable for both internal and external defibrillator use. The Tribunal concluded that the electrodes qualify as accessories for the Defibrillator for internal use as per the notification, allowing the appeal and granting the Nil rate of duty benefit to the importers.

The key issue in this case was the correct classification of 'disposable ECG Electrodes' for duty exemption under a customs notification. The authorities initially denied the exemption, arguing that the goods were part of an ECG Monitor/recorder, not the specific Defibrillator covered by the notification. However, the Tribunal analyzed the technical specifications of the defibrillator model in question and expert certification to determine that the electrodes were standard accessories essential for the defibrillator's proper functioning. The certification confirmed that the electrodes were used for monitoring electrocardiogram and synchronizing shocks, suitable for both internal and external defibrillator use. Based on this analysis, the Tribunal concluded that the electrodes qualified as accessories for the Defibrillator for internal use as specified in the notification, thereby granting the importers the benefit of Nil rate of duty.

The judgment highlighted the importance of technical specifications and expert opinions in determining the classification of goods for duty exemption under customs notifications. By considering the specific functions and compatibility of the 'disposable ECG Electrodes' with the defibrillator model in question, the Tribunal established that the electrodes were essential accessories for the proper operation of the Defibrillator for internal use. The expert certification provided crucial insights into the functionality and versatility of the electrodes, confirming their applicability for both internal and external defibrillator use. This thorough analysis enabled the Tribunal to uphold the importers' claim for duty exemption and grant them the benefit of Nil rate of duty based on the goods' classification as accessories for the specified Defibrillator model.