2018 (2) TMI 1226 - AT - Central Excise

Classification of goods - fibreglass casting tapes/splints - appellant s stand is that the subject goods are classifiable under Chapter heading 9021.90 whereas the department s stand is that these goods are classifiable under 3004.90 of CETA - Held that - subject goods are not in the category of orthopaedic appliances, which could find classification under Chapter 9002. The said goods actually are in the category of wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), which are meant for use in medical/surgical purpose. There is no material on record and no acceptable submission also from the appellant to hold that the classification of the subject item be under Chapter 9002 instead of Chapter 30. Appeal dismissed - decided against appellant.

Summary

Issues: Classification of fibreglass casting tapes/splints under Chapter subheading 3004.90 of CETA, 1985 versus Chapter heading 9021.90

Analysis:
1. The appellant contested the classification of fibreglass casting tapes/splints under Chapter subheading 3004.90, arguing that they should be classified under Chapter heading 9021.90. The appellant emphasized that for classification under Chapter 30, the products must either be impregnated or coated with pharmaceutical substances or put up in a form or packing for medical, surgical, dental, or veterinary purposes. The appellant refuted the department's claim by stating that neither condition was met in this case, as no pharmaceutical substances were used in manufacturing the tapes and the products were not packed for medical purposes.

2. The learned DR for Revenue supported the classification under Chapter 3004.90 by citing precedents such as Johnson & Johnson Ltd. vs. CC, Bombay and Dr. Sabharwal's Bulk Drugs Ltd. vs. CCE, Kanpur. However, the tribunal found that the subject goods did not fall under orthopaedic appliances but rather under the category of wadding, gauze, bandages, and similar articles meant for medical/surgical use. The tribunal noted that there was no material or submission to justify classifying the goods under Chapter 9002 instead of Chapter 30, as per the decisions referenced by the DR.

3. The tribunal, after careful consideration, agreed with the impugned order and upheld the classification of the fibreglass casting tapes/splints under Chapter 3004.90. Relying on previous tribunal decisions, the tribunal found no factual basis to deviate from the classification determined in those cases. Consequently, the appeal was dismissed on the grounds of lacking merit, and the impugned order was sustained.

By following the precedent set by previous tribunal decisions and analyzing the specific conditions for classification under the relevant chapters, the tribunal concluded that the fibreglass casting tapes/splints should be classified under Chapter subheading 3004.90 of CETA, 1985.