2015 (3) TMI 289 - AT - Customs

Reclassification of goods - denial of notification benefits - Held that - Samples of the products should be drawn and sent to a recognized institution for obtaining expert opinion as to whether the goods under importation derive their property solely from their elasticity and conditions specified in Note 6 to chapter 90 are satisfied or not. Without such expert opinion, coming to any conclusion either way will not be correct in our considered view. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Classification of imported products under Chapter 90 as Medical Surgical Orthopedic appliances or as textile products.

Analysis:
The appellant, a regular importer, sought classification of imported products such as Knee Wrap, Ankle Wrap, Max Wrap, Poly Gel Insoles, Predimemory Insoles, and Heel Care Cushions under Chapter 90 as 'Medical Surgical Orthopedic appliances.' The Revenue argued for classification under Chapter 63 as 'textile products' based on Note 1(b) to Chapter 90, which excludes products deriving properties solely from elasticity. The appellant's consultant referred to supplier certificates claiming the goods as Medical/Orthopedic appliances. The dispute centered on whether the products satisfied the specifications of 'orthopedic appliances' under Note 6 to Chapter 90.

The Tribunal, after hearing both parties, decided to draw samples of the products for expert opinion verification. The expert assessment would determine if the goods derived properties solely from elasticity and met the conditions specified in Note 6 to Chapter 90. The Tribunal emphasized the necessity of expert opinion to reach a correct conclusion and directed the department to reconsider the matter after obtaining the expert opinion. The appellant was instructed to cooperate, and the department was required to provide a copy of the expert opinion for the appellant's defense submissions. The adjudicating authority was tasked with issuing a new order in compliance with the law, keeping all other issues open.

In conclusion, the appeal was allowed for remand, highlighting the importance of expert opinion in resolving the classification dispute. The decision emphasized the need for a thorough evaluation based on expert assessment to ensure a fair and accurate classification of the imported products.