2019 (2) TMI 502 - AT - Customs

Concessional rate of duty - import of hospital equipment Gas Manifold System - benefit of N/N/. 21/2002-CUS dated 01.03.2002 - It is his submission that the accessories of this system which they have imported through air cargo complex, Hyderabad also fall under the same category and are eligible for exemption notification - Held that - A plain reading of the exemption notification does not require the chapter heading of the accessories to be the same as that of main equipment or even the accessories to fall under Chapter 90. They could fall under any chapter of the Customs Tariff and still be eligible for exemption under the notification. Coming to the second contention that the accessories were imported separately and not with the main equipment, this is a factual position and is not in dispute. There is nothing in this notification which requires the accessories or spare parts to be imported along with the main equipment only to claim the benefit of this notification. Such an interpretation of the first appellate authority is not supported by the wording of the exemption notification. Since, these two are the only points of dispute, it can be held that the assessee is eligible for exemption notification in respect of the accessories imported by them. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Interpretation of exemption notification 21/2002-CUS for hospital equipment and accessories imported separately.

Detailed Analysis:

Issue 1: Interpretation of Exemption Notification 21/2002-CUS
The appellant, a society engaged in cancer research, imported hospital equipment and accessories, seeking the benefit of notification 21/2002-CUS. The first appellate authority allowed the benefit for the main equipment but denied it for the accessories, imported separately. The appellant argued that the accessories, though imported under different headings, were integral to the hospital equipment and should qualify for the exemption. The departmental representative supported the lower authority's decision, stating the exemption was not applicable to the accessories. The Tribunal noted that the appellant fulfilled Condition No. 77 under S.No.362 of the notification for the main equipment, and the dispute centered on the accessories. The Tribunal emphasized that the notification did not mandate the accessories to be imported together with the main equipment or under the same chapter heading. The description of eligible goods included spare parts and accessories for use in specified hospitals, irrespective of the chapter under which they fall in the Customs Tariff. Therefore, the Tribunal held that the appellant was entitled to the exemption for the accessories, overturning the lower authority's decision.

Conclusion:
The Tribunal allowed the appeal, setting aside the impugned order and ruling in favor of the appellant's eligibility for the exemption under notification 21/2002-CUS for the accessories imported separately.