1997 (8) TMI 191 - AT - Customs

Summary

Issues:
- Classification of "Scalp Vein Sets" as either "Intravenous Cannulae & Tubing for long term use" or "Infusion sets" under Customs Tariff Heading No. 9018.32.
- Interpretation of Notification No. 208/81-Cus., dated 22-9-1981.
- Consideration of disposable nature of the goods in determining eligibility for benefit under the notification.

Detailed Analysis:

1. Classification Dispute:
The Collector, Customs (Appeals) classified the "Scalp Vein Sets" as "Intravenous Cannulae & Tubing for long term use" based on Notification No. 208/81-Cus., dated 22-9-1981. However, the Revenue contended that the goods should be assessed as "Infusion sets" under Customs Tariff Heading No. 9018.32. The issue revolved around whether the sets fell under the category of infusion sets or intravenous cannulae.

2. Legal Precedents and Interpretation:
The Tribunal referred to the decision of the Hon'ble High Court of Calcutta in the case of Trio Marketing Pvt. Ltd. v. UOI, where it was held that infusion sets do not qualify as intravenous cannulae for long term use. The High Court's interpretation emphasized the presence of a catheter-like tube around the needle for prolonged infusion to avoid internal damage, which was not found in the scalp vein sets in question.

3. Disposable Nature Consideration:
The Collector, Customs (Appeals) noted that the imported goods were disposable, indicating they were not for long term use. This observation aligned with the High Court's stance that the phrase "long term" should be construed as "prolonged." Therefore, the disposable nature of the goods played a crucial role in determining their classification and eligibility for the notification's benefit.

4. Decision and Remand:
Considering the High Court's ruling and the disposable nature of the goods, the Tribunal set aside the impugned orders and remanded the appeals to the Collector, Customs, Madras for fresh consideration. The Collector was directed to reassess the classification while taking into account the High Court's observations and providing the respondents with a personal hearing.

In conclusion, the judgment clarified the classification of "Scalp Vein Sets" and highlighted the importance of legal interpretation, precedents, and the disposable nature of goods in determining their eligibility for customs benefits.