1998 (9) TMI 281 - AT - Customs

Defibrillator capacitors excluded from the benefit of exemption under Notification No. 208/81-Cus.

Summary

Issues:
1. Interpretation of Notification No. 208/81-Cus regarding exemption for life-saving equipment components.
2. Whether defibrillator capacitors imported by the appellants qualify for duty exemption under the notification.
3. Exclusion of specific components of defibrillators under the notification.

Issue 1: Interpretation of Notification No. 208/81-Cus:
The appeal challenged the denial of duty exemption under Notification No. 208/81-Cus for imported defibrillator capacitors, arguing that the exclusion of components should not defeat the intention of granting exemption to life-saving equipment. The appellants contended that the notification should be interpreted to further the cause of justice. They emphasized that excluding essential parts would render the exemption meaningless. The Collector (Appeals) held that the exclusion clause encompassed specific components listed under Sl. No. (i) to (iv) under the heading "Life Saving Equipments," and these components were covered by the exclusion clause.

Issue 2: Qualification for Duty Exemption:
The appellants imported defibrillator capacitors and claimed they were eligible for duty exemption under Notification No. 208/81-Cus as life-saving equipment components. However, the Assistant Collector rejected this claim, stating that the capacitors were excluded from the benefit of the notification. The Collector (Appeals) upheld this decision, emphasizing that the exclusion clause covered specific components of defibrillators, including capacitors, which were essential parts for the functioning of defibrillators.

Issue 3: Exclusion of Specific Components:
The notification excluded certain components of defibrillators, such as polyester/paper discharge capacitors, discharge/damp relay, connector, and high voltage retractable flexible wire. The respondent argued that the exclusion of these components, including capacitors, was clear from the scheme of the notification. The exclusion clause specified items (i) to (iv) as components not eligible for duty exemption, indicating that the intention was to exclude these specific parts from the benefits of the notification.

In conclusion, the Tribunal upheld the decision denying duty exemption to the imported defibrillator capacitors under Notification No. 208/81-Cus. The judgment emphasized that the exclusion of specific components, including capacitors, was clear under the notification's scheme. Despite arguments regarding the importance of these components for defibrillators' functioning, the Tribunal found no justification to grant the exemption based on the notification's provisions. The judgment highlighted the need to interpret notifications according to their explicit terms and exclusions, even if certain components were essential for the equipment's operation.