2024 (8) TMI 1002 - AT - Customs

Classification of imported goods - Dryview 6850 Laser Imaging W/3D (Medical Equipment) - to be classified under Customs Tariff Heading 90189019 as other diagnostic instruments and apparatus or under Heading 9033? - HELD THAT - The intended use of the Laser Imager as per the Company s booklet, is that it will interface with a variety of digital modalities including but not limited to CR (Computed Radiology) DR (Digital Radiology), CT (Computerized Topography), MRI (Magnetic Resonance Imaging) and FFDM (Full Field Digital Mammography). It does not state that the accessory is more suited solely or principally for one machine as against the others either due to its make, technology used or capabilities etc. while the word solely means only and not involving anyone or anything else , the word principally means primarily or of first importance . Hence the market test of the goods shows that it a multi-compatible accessory for a variety of medical digital imaging sources and cannot be said to be suitable for use solely or principally with a particular kind of machine or instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading. In such a situation it would be a travesty to limit its suitability or use only as an accessory to the MRI system or to medical equipment classifiable under CTH 9018 only. Classifying a multi-compatible accessory by pairing it with the machine of choice of the importer runs the possibility of the same model of the Laser Imager being classified under different heading each time an importer declares its suitability or use solely or principally with a machine covered by a different CTH. Classification of imported goods cannot be the subject matter of such vagaries. This being so classification of the impugned goods under CTH 9018 9019, by application of Note 2 (b) of chapter 90 would not be appropriate. The appellant has referred to the Tribunals judgment in MANIPAL ACADEMY OF HIGHER EDUCATION VERSUS COMMR. OF CUS., CHENNAI 2005 (5) TMI 165 - CESTAT, BANGALORE , as upheld by the Supreme Court in COMMISSIONER VERSUS MANIPAL ACADEMY OF HIGHER EDUCATION 2006 (3) TMI 810 - SC ORDER , to state that Path speed work station which was capable of use along with CT Ultra scan, X-ray systems was also held to be an accessory to the MRI system and was accordingly found eligible for exemption under notification no 20/99-Cus as an accessory. The facts of the present case are different. The Lower Authority has taken a view which is reasonable, legal and proper - the impugned order is upheld - appeal dismissed.

Summary

Issues Involved:
1. Classification of imported goods under the Customs Tariff.
2. Applicability of Chapter Note 2(b) and Note 2(c) of Chapter 90 for classification.
3. Consideration of the end-use of the product for classification.
4. Alternate plea for classification under CTH 9018 1300 as 'Magnetic Resonance Imaging Apparatus'.

Issue-wise Detailed Analysis:

1. Classification of Imported Goods:
The appellant imported "Dryview 6850 Laser Imaging W/3D (Medical Equipment)" and classified it under Customs Tariff Heading (CTH) 90189019 as 'other diagnostic instruments and apparatus'. The lower authority reclassified it under Heading 9033 based on Note 2(c) of Chapter 90, which was upheld by the Commissioner of Customs (Appeals).

2. Applicability of Chapter Note 2(b) and Note 2(c) of Chapter 90:
The appellant argued that the Laser Imager should be classified under CTH 9018 1300 as it is principally used with MRI equipment. Chapter Note 2(b) states that parts and accessories suitable for use solely or principally with a particular kind of machine should be classified with that machine. The respondent contended that the Laser Imager interfaces with multiple medical imaging machines and should be classified under Heading 9033 as per Note 2(c), which applies to accessories suitable for use with a variety of machines.

3. Consideration of End-Use for Classification:
The court referred to the Supreme Court judgment in CCE v. Carrier Aircon, which emphasized that the end-use of a product cannot determine its classification if the product falls within a specific tariff entry. The court noted that the Laser Imager interfaces with various digital modalities and does not solely or principally serve one type of machine. Therefore, it cannot be classified under CTH 9018 based on end-use.

4. Alternate Plea for Classification under CTH 9018 1300:
The appellant's alternate plea for classification under CTH 9018 1300 as 'Magnetic Resonance Imaging Apparatus' was rejected. The court found that the Laser Imager is a medical image printer, not an MRI apparatus. It provides high-resolution hard copy images from digital imaging sources and is known in the market as a medical image printer.

Conclusion:
The court upheld the lower authority's classification of the Laser Imager under Heading 9033 as per Note 2(c) of Chapter 90, dismissing the appeal. The court emphasized that the Laser Imager is a multi-compatible accessory suitable for use with various medical imaging machines and cannot be classified solely or principally with MRI equipment under CTH 9018. The appeal was disposed of accordingly.

Order Pronounced:
(Order pronounced in open court on 21.08.2024)