1987 (6) TMI 183 - AT - Central Excise

Summary

Issues Involved:
1. Classification of imported goods.
2. Applicability of Notification No. 208-Cus., dated 22-9-1981.

Issue-wise Detailed Analysis:

1. Classification of Imported Goods:

The primary issue in this case is the classification of the imported breathing appliances. The respondents imported two packages of breathing appliances and claimed their assessment under heading 90.17/18 as components for gas masks and similar respirators. The adjudicating authority, after examining the catalogue and samples, classified the goods under heading 84.10 of the Customs Tariff Act (CTA), 1975, as parts of filtering and purifying machinery. The Assistant Collector observed that the imported items were parts of filters meant to purify contaminated air, thus classifying them under 84.18(2) instead of 90.17/18.

The respondents appealed, arguing that the goods should be classified under heading 90.17/18 as parts of breathing appliances, referencing Note 2(b) of Chapter 90 of CTA, 1975. The Collector of Customs (Appeals) agreed with the respondents, stating that the imported components, being parts of breathing appliances, should be classified under heading 90.17/18. The Collector noted that the components were not general air filters but were specifically designed for breathing appliances, and thus, their classification as air filters under 84.18(2) was inappropriate.

The Tribunal upheld the Collector of Customs (Appeals) decision, emphasizing that the imported items should be classified under the heading most appropriate to their description. The Tribunal noted that heading 84.18(2) pertains to air filters for internal combustion piston engines, which do not change the air composition. In contrast, the imported filters convert Carbon Monoxide into Carbon Dioxide, making them specialized equipment for breathing appliances, thus falling under heading 90.17/18.

2. Applicability of Notification No. 208-Cus., dated 22-9-1981:

The respondents also claimed the benefit of Notification No. 208-Cus., dated 22-9-1981, which provides exemptions for life-saving drugs, medicines, and equipment. The Collector of Customs (Appeals) rejected this claim, stating that the notification applies to complete life-saving equipment, not just components. Since the imported goods were parts of breathing equipment, they did not qualify for the exemption under this notification.

The Tribunal concurred with this view, noting that the respondents did not file a cross-objection against this part of the order. Therefore, the denial of the benefit of Notification No. 208-Cus. was upheld, and the appeal by the revenue was dismissed.

Conclusion:

The Tribunal concluded that the imported goods should be classified under heading 90.17/18 as parts of breathing appliances, in line with Note 2(b) of Chapter 90 of the CTA, 1975. The appeal was dismissed, and the respondents' claim for the benefit of Notification No. 208-Cus., dated 22-9-1981, was denied.