1998 (8) TMI 364 - AT - Customs

Summary

Issues:
Extension of benefit of Notification No. 208/81-Cus., dated 22nd September, 1981 to two fluids used in dialysis machines.

Analysis:
The primary issue in this appeal was whether two fluids, Naturalyte and Erilyte, used in dialysis machines, could be considered as standard accessories under Notification No. 208/81-Cus., dated 22nd September, 1981. The appellants claimed that these fluids were essential for carrying out dialysis and should be granted the benefit of the said notification. They provided a certificate from the office of DGHS stating that the fluids were standard accessories of the dialyser. Additionally, technical literature described these fluids as components of the dialyser, crucial for removing impurities from the blood during dialysis. The appellants argued that without these fluids, dialysis could not be performed effectively. The Lower Appellate Authorities rejected this claim, stating that fluids cannot be considered as accessories or attachments to a machine, likening them to petrol for a car, which is necessary but not a component part of the car.

Alternatively, the appellants also claimed that based on the certificate from DGHS, the fluids should be treated as life-saving drugs under part C of the notification. However, this claim was not considered by the Lower Appellate Authority as it was not raised before the original authority. The appellate tribunal agreed with the Lower Appellate Authority's decision that the fluids could not be classified as accessories. Still, they accepted the second plea made by the appellants regarding the essential nature of the fluids for dialysis. The tribunal emphasized that the certificate from DGHS confirmed the life-saving character and essentiality of the fluids for use in dialysis machines. They criticized the Lower Appellate Authority for not examining this claim, stating that when a claim is made before them, it is their duty to consider it. Therefore, the tribunal extended the benefit of Notification No. 208/81 to the two fluids under part C of the list attached to the notification, acknowledging their critical role in the dialysis process. The appeal was allowed, and the impugned order was set aside, granting consequential relief to the appellant.