2023 (9) TMI 1641 - AAR - Customs

Classification of Linear Accelerator - to be classified under Heading 9022 or not? - HELD THAT - The apparatus based on the use of X-Rays whether or not for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus are aptly covered under Heading 9022. The linear accelerator is not specifically covered under any sub-heading of CTH 9022 of Customs Tariff. CTH 9022 covers all the apparatus based on the use of X-Rays and that include Radiotherapy apparatus as well. Further, the applicant has submitted that LINAC is Non-portable and hence cannot be classified under CTI 9022 14 20 which covers Portable X-Ray Machine. I find that the product under consideration is rightly classifiable under residual entry CTI 9022 14 90. Conclusion - Linear Accelerator merit classification under Heading 9022 and specifically under sub-heading 9022 14 90 of the First Schedule to the Customs Tariff Act, 1975.

Summary

1. ISSUES PRESENTED and CONSIDERED

The core legal question in this judgment revolves around the correct classification of the "Linear Accelerator" (LINAC) under the Customs Tariff Act, 1975. Specifically, the issue is whether the LINAC should be classified under Heading 9022, which covers apparatus based on the use of X-rays or other ionizing radiations, including radiotherapy apparatus.

2. ISSUE-WISE DETAILED ANALYSIS

Relevant Legal Framework and Precedents

The Customs Tariff Act, 1975, particularly Chapter 90, is relevant for the classification of medical and surgical instruments and apparatus. Heading 9022 specifically covers apparatus based on the use of X-rays or other ionizing radiations, whether for medical, surgical, dental, or veterinary uses, including radiography or radiotherapy apparatus.

Court's Interpretation and Reasoning

The court analyzed the functionality and components of the Linear Accelerator (LINAC). It found that LINAC is a medical device used as a radiotherapy apparatus, delivering high-energy X-rays or electrons to cancer tumors with precision, sparing nearby healthy tissue. The court noted that the equipment operates on the principle of high-energy X-rays, aligning with the description under Heading 9022.

Key Evidence and Findings

The applicant provided detailed technical information about the LINAC, emphasizing its use in cancer treatment and its operation based on high-energy X-rays. The jurisdictional Commissioner of Customs also provided comments supporting the classification under Heading 9022, given the apparatus's reliance on X-ray technology.

Application of Law to Facts

The court applied the Customs Tariff Act, 1975, and the Harmonized System Nomenclature (HSN) explanatory notes to the facts. It determined that the LINAC, being a non-portable radiotherapy apparatus based on X-ray technology, fits within the scope of Heading 9022, specifically under sub-heading 9022 14 90, which covers other non-portable X-ray apparatus for medical, surgical, or veterinary uses.

Treatment of Competing Arguments

Both the applicant and the jurisdictional Commissioner of Customs agreed on the classification under sub-heading 9022 14 90. There were no competing arguments presented, as the consensus was that LINAC does not fall under any other specific sub-heading within Heading 9022.

Conclusions

The court concluded that the Linear Accelerator is appropriately classified under Heading 9022, sub-heading 9022 14 90, of the Customs Tariff Act, 1975. This classification aligns with the apparatus's function and the legal framework governing medical devices based on X-ray technology.

3. SIGNIFICANT HOLDINGS

Preserve Verbatim Quotes of Crucial Legal Reasoning

"I find that linear accelerator, also referred to as LINAC, is a machine that aims radiation at cancer tumors with pinpoint accuracy, sparing nearby healthy tissue. LINAC helps cancer specialists treat cancers of almost all body parts."

"The apparatus based on the use of X-Rays whether or not for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus are aptly covered under Heading 9022."

Core Principles Established

The judgment establishes that medical devices operating on the principle of high-energy X-rays, particularly those used for radiotherapy, are classified under Heading 9022 of the Customs Tariff Act, 1975. The classification is further refined to sub-heading 9022 14 90 for non-portable apparatus.

Final Determinations on Each Issue

The final determination is that the Linear Accelerator merits classification under Heading 9022, specifically under sub-heading 9022 14 90, of the First Schedule to the Customs Tariff Act, 1975. This classification is based on the apparatus's function and its reliance on X-ray technology for medical use.