1996 (10) TMI 201 - AT - Customs

Summary

Issues Involved:

1. Classification of the imported goods.
2. Eligibility for duty exemption under Notification No. 208/81-Cus., dated 22-9-1981.
3. Determination of whether the goods are "agglutinating sera."

Summary:

1. Classification of the Imported Goods:

The appellants filed Bills of Entry for goods described as "Agglutinating Sera" for detecting Human Chorionic Gonadotrophin (HCG) in urine, claiming classification under sub-heading 3002.90 of the Customs Tariff. The Department contended that the goods were pregnancy test kits/diagnostic reagents, classifiable under sub-heading 38.22, and not "Agglutinating Sera." The adjudicating authority confirmed the demand of differential duty but dropped the charge of misdeclaration, confiscation, and penalty. The Tribunal held that the imported goods are correctly classifiable under Heading 3002.10, which covers "anti sera and other blood fractions," based on the HSN Explanatory Notes to Heading 30.02.

2. Eligibility for Duty Exemption:

The appellants claimed the benefit of duty-free assessment under Notification No. 208/81-Cus., dated 22-9-1981, in terms of Sl. No. 216 of Schedule A, which covers "Agglutinating Sera." The Department denied this benefit, arguing that the goods were not "Agglutinating Sera." The Tribunal found that the imported product, "Pregcolor," is indeed "Agglutinating Sera" and eligible for the benefit of total exemption from duty under the said notification.

3. Determination of Whether the Goods are "Agglutinating Sera":

The Tribunal examined the nature of "Agglutinating Sera," including definitions from various medical dictionaries and the process of producing monoclonal antibodies. The product "Pregcolor" was found to be an agglutinating serum obtained through a process involving the injection of HCG into mice, producing antiserum containing antibodies to HCG. The Tribunal rejected the adjudicating authority's reasons for not considering the product as "Agglutinating Sera," including its solid form due to freeze-drying, coating on a carrier (SOL particle), and import in kit form. The Tribunal also noted that the product is life-saving as it is used for detecting life-threatening conditions and early pregnancy detection. Opinions from leading doctors and the Department of Biotechnology supported the appellants' claim.

Conclusion:

The Tribunal held that the imported item "Pregcolor" is "Agglutinating Sera," classifiable under sub-heading 3002.10 of the Customs Tariff and eligible for duty exemption under Sl. No. 216 of Schedule A to Notification No. 208/81-Cus. The impugned order was set aside, and the appeal was allowed with consequential relief.