2000 (6) TMI 335 - AT - Customs

Summary

Issues:
Whether Exemption Notification No. 66/87-Cus., dated 1-3-1987 applies to spare parts and accessories of Haemodialysers as life-saving equipment.

Detailed Analysis:

1. Interpretation of Exemption Notification:
The central issue in this appeal was the interpretation of Exemption Notification No. 66/87-Cus., dated 1-3-1987, concerning spare parts and accessories of life-saving equipment. The appellant argued that the exemption covered all spare parts and accessories of listed life-saving equipment, including Haemodialysers. The appellant contended that the Revenue's view of restricting the exemption to spare parts in specific chapters was legally incorrect, citing judgments in support.

2. Contentions of the Parties:
The appellant's consultant argued that the exemption applied to all spare parts and accessories of listed life-saving equipment, emphasizing that Haemodialysers were classified as life-saving equipment. In contrast, the Departmental Representative maintained that the exemption was limited to spare parts falling under specific chapters, as clearly stated in the notification.

3. Analysis of Exemption Notification:
The Tribunal carefully analyzed the language of Exemption Notification No. 66/87 and concluded that the exemption was explicitly restricted to spare parts falling under chapter 90 or 98 of the Customs Tariff Act. The Tribunal noted that the legislative intent was clear in limiting the exemption to spare parts and accessories falling under specific chapters, as specified in the notification.

4. Precedents and Legal Interpretation:
The appellant relied on various judgments to support a broader interpretation of the notification. However, the Tribunal distinguished these cases, emphasizing that the present notification did not require additional conditions like an Essentiality Certificate. The Tribunal also highlighted that the basic requirement of spare parts falling under specific chapters was not met in this case.

5. Judicial Interpretation and Dismissal of Appeal:
After a thorough analysis, the Tribunal dismissed the appeal, holding that the lower authorities had correctly denied the duty exemption as the spare parts in question did not fall under the designated chapters specified in the notification. The Tribunal emphasized that when the fundamental requirement set by the Legislative Authority was not met, there was no basis for a liberal interpretation of the notification.

In conclusion, the Tribunal upheld the denial of the duty exemption on spare parts and accessories of Haemodialysers, as the notification clearly restricted the exemption to spare parts falling under specific chapters, as outlined in the Customs Tariff Act.