2001 (2) TMI 364 - AT - Central Excise

Summary

Issues:
1. Eligibility of 'Latex Examination Gloves' for concessional rate of duty under Notification No. 5/98.
2. Interpretation of the term 'Medical Examination Gloves' under the notification.
3. Consideration of end-use verification for concessional assessment.
4. Application of standards laid down by ASTM for the product.

Eligibility for Concessional Rate of Duty:
The appeal before the Appellate Tribunal CEGAT, Bangalore revolves around the eligibility of 'Latex Examination Gloves' for a concessional rate of duty under Sl. No. 80 of Notification No. 5/98. The Department filed a stay application, which was rejected, leading to a regular hearing. The core issue is whether the gloves qualify for the concessional rate as specified in the notification.

Interpretation of 'Medical Examination Gloves':
The Department contended that 'Examination Gloves' are general purpose gloves used for both medical and non-medical purposes, as evidenced by invoices and shipping bills. However, the notification specifically mentions 'Medical Examination Rubber Gloves' for the concessional rate, not all examination gloves. The absence of the term 'Medical' in the description was highlighted by the revenue, citing a Supreme Court decision emphasizing the importance of proving end-use without shifting the duty burden to consumers.

End-Use Verification for Concessional Assessment:
The respondents argued that the description 'Latex Examination Gloves' on packages and clearance documents implies medical examination gloves, as 'Examination' in this context typically signifies medical use. They emphasized that the notification does not impose specific end-use conditions, and the product meets the criteria of 'Medical Examination Gloves' eligible for concessional assessment. The Tribunal found no evidence supporting the revenue's claim that the gloves are not suitable for medical examination, upholding the Commissioner (Appeals)'s analysis and rejecting the revenue's appeal.

Application of ASTM Standards:
The respondents also highlighted compliance with ASTM standards for the product, indicating its suitability for medical examination, diagnostic, and therapeutic procedures. This aspect further supported the argument that the gloves should be categorized as 'Medical Examination Gloves' under the notification. The Tribunal's decision to reject the revenue's appeal was based on the lack of evidence to refute the product's intended medical use, as indicated by the description and standards followed.

In conclusion, the Appellate Tribunal upheld the eligibility of 'Latex Examination Gloves' for the concessional rate of duty under Notification No. 5/98, emphasizing the common understanding of the term 'Examination Gloves' in the medical context and the absence of specific end-use conditions in the notification. Compliance with ASTM standards further strengthened the product's classification as 'Medical Examination Gloves,' leading to the rejection of the revenue's appeal.