2010 (2) TMI 530 - AT - Central Excise

Medical equipment - Revenue filed this Appeal on the ground that the product in question is nothing but flow-meter and the Respondent in their records described the item as flow-meter only. Hence, the goods in question are not entitled for the benefit of the Notification No. 60/95-C.E., as the Notification grants exemption to Nebulised Humidifier which is medical equipment. Held that both authorities below after going through evidence on record held that impugned items are medical flow meter. Benefit of notification available.

Summary

Issues:
1. Classification of goods under Central Excise Tariff
2. Eligibility for benefit under Notification No. 60/95-C.E.

Analysis:
1. The primary issue in this case revolved around the classification of goods under the Central Excise Tariff. The Revenue filed an appeal against the Commissioner (Appeals) order regarding the valuation of specific goods, namely "Flow-Meter BPC Complete, Mediflow BPC, Oxy-flow, and Humidifiers." These goods were held to be classifiable under sub-heading No. 9026.00 of the Central Excise Tariff. The Commissioner determined that the goods qualified for the benefit of Notification No. 60/95-C.E., dated 16-3-95, as medical equipment. The Revenue contended that the products were merely flow-meters and not entitled to the exemption provided under the said Notification. However, the Respondents argued that the goods were indeed medical equipment used for providing oxygen and medicine to patients in a regulated manner, as described in the invoice as Mediflow BPC Oxy Flow Meter.

2. The second issue focused on the eligibility of the goods for the benefit under Notification No. 60/95-C.E. The Respondents maintained that the goods were essential for medical purposes, forming a crucial part of the treatment process in hospitals or medical settings. They emphasized that the goods facilitated the accurate flow of oxygen with medicine to patients, serving as vital breathing equipment. The Tribunal, after examining the evidence and the description provided in the invoice as Mediflow BPC Oxy Flow Meter, concluded that the goods were not ordinary flow-meters but classified as Nebulised Humidifiers. Both lower authorities had also confirmed the medical nature of the goods, leading to the dismissal of the Revenue's appeal. The Tribunal upheld the impugned order, stating that the goods in question indeed qualified as Nebulised Humidifiers and were eligible for the benefits under Notification No. 60/95-C.E.

In conclusion, the Tribunal affirmed the classification of the goods as Nebulised Humidifiers under the Central Excise Tariff and upheld their eligibility for the benefits provided under Notification No. 60/95-C.E. The judgment emphasized the specialized medical nature of the goods in question, highlighting their essential role in providing regulated oxygen and medicine to patients in need of medical care.