2014 (2) TMI 540 - AT - Customs

Classification of goods - Exemption under notification No. 21/2002- Cus, dated 01.03.2002 (Sr. No. 357A) and Notification No. 10/2006- CE dtd. 10.02.2006 - Classification under CTH 90189099 or CTH 90229090 - appellants imported FCR Capsula, Dry Pix 7000 and IP Cassette & Imaging Plate - Held that - FCR Capsula X process the X- Ray image already captured on the image plate housed in casettee. In this machine processing starts only after the image is captured. This instrument is not based on X- Rays and X- rays are not an input for this machine and therefore, it is an independent apparatus. In these circumstances , we find that the item is rightly classifiable under CTH 90229090/90221490 and hence not eligible for the benefit of the Notification. Drypix 7000 is an instrument / applicants which is exclusively means for medical use. This machine prints the image of X- Ray obtained on imaging plate and cannot be used for printing on paper or otherwise for general purposes. On perusal of the CTH 9022 and the literature available, we find that these items conclusively contribute to well defined function of X- Ray based diagnosis apparatus. CTH 9022 covers not X- ray machine but apparatus used in diagnoses. The apparatus used in diagnoses would therefore include the impugned items as essential parts of apparatus. Therefore the item is rightly classifiable under CTH 90229090 and not eligible for the benefits of the Notification. Imaging plates & I.P. Cassettes Imaging place (IP is used instead of film to record X- ray images). The IP contains photostimulable phosphors that store X- ray energy. Scanning, the IP released the energy , producing electronic signals, which are converted to digital values. Barium fluorohalide (BafX) phosphors in a high density layer deliver the sensitivity, sharpens and low noise in computed radiographic diagnosis the I.P. is inserted in a cassette for X- ray exposure. In these circumstances, we find that the items are rightly classifiable under 90189099 and eligible for the benefit of Notification as applicable - Decided against assessee.

Summary

Issues:
Classification and exemption benefits for:
1. Dry Pix 7000
2. FCR Capsula
3. IP Cassette & Imaging Plate

Analysis:
- The appellants imported various products and claimed exemptions under specific notifications. The lower adjudicating authority denied these benefits, leading to the appeal.
- The appellants argued that even if goods were classified differently, they should still be eligible for benefits. They contested the classification of FCR Capsula, IP Cassettes, and Imaging Plates as parts of diagnostic apparatus.
- Concerns were raised regarding the correct classification of items, with discrepancies noted in the authority's order and the appellants' claims.
- The appellants emphasized that Drypix 7000 was solely for medical use, printing X-ray images exclusively for medical purposes.
- The contention focused on the correct classification of IP Cassettes and Imaging Plates under specific headings for exemption benefits, citing relevant case law.
- The Deputy Commissioner reiterated the lower authorities' findings, leading to a detailed analysis by the Tribunal judges.
- The Tribunal carefully considered the submissions and records, focusing on the classification and benefits of the disputed items.
- Detailed analysis was provided for each item: FCR Capsula X, Drypix 7000, and IP Cassettes & Imaging Plates.
- The Tribunal concluded that FCR Capsula X was rightly classified under a specific heading, making it ineligible for the benefit claimed.
- Drypix 7000 was classified under a different heading due to its exclusive medical use, not qualifying for the claimed benefits.
- Imaging Plates and IP Cassettes were correctly classified under a specific heading, making them eligible for the exemption benefits.
- The Tribunal modified the order based on the above analysis, disposing of the appeal accordingly.