2001 (8) TMI 410 - AT - Customs

Summary

Issues: Classification of imported goods as medical X-ray films under Central Excise Tariff; Mis-declaration of goods leading to duty evasion; Confiscation and penal action proposed by the Department; Denial of classification by lower Appellate Authority.

Classification Issue:
The appellants imported goods described as medical X-ray films and claimed classification under specific headings of the Central Excise Tariff. The Department contended that the films were not for direct use with X-rays but for imaging procedures using visible light radiation. A show cause notice was issued alleging mis-declaration to evade duties. The Dy. Commissioner held that the films were not designed for exposure by X-rays to obtain internal body organ images. The lower Appellate Authority rejected the appeal, stating that the films were not for direct use with X-rays.

Analysis:
The Tribunal reviewed the literature provided by the importers, acknowledging that the films were used for recording images in various medical procedures, including CT, MRI, angiography, and ultra sonography. The Tribunal noted that, except for MRI, X-ray films were used in these procedures. Referring to a book on radiography techniques, the Tribunal highlighted the principles involved in X-ray photography, emphasizing the importance of X-ray intensity profiles in recording images. The Tribunal found that the films in question were indeed used in X-ray photography, supporting their classification under the claimed headings.

Decision:
The Tribunal concluded that despite the Department's argument that the films were not for direct use with X-rays, the literature and accepted practices indicated otherwise. Therefore, the Tribunal held that the goods fell under the specified headings for photographic films for X-rays, allowing the benefit of the Notification claimed by the importers. Consequently, the impugned order was set aside, and the appeals were allowed in favor of the importers.

This detailed analysis and decision by the Tribunal resolved the classification issue concerning the imported medical X-ray films, emphasizing the essential use of the films in X-ray photography despite the Department's contrary view.