2016 (8) TMI 878 - AT - Central Excise

Eligibility - concessional rate of duty under notification No. 10/03 dated 1.3.03 - disposable plastic syringe and disposable hypodermic needles cleared separately - syringes and needles are for specific function and are complementary to each other, hence, when presented separately should be considered as parts of medical appliances - Held that - the only ground on which the concession was sought to be denied by the Revenue is that syringes or the needles cannot work independently. However, we are in agreement with the original authority regarding specific classification of the syringes and needles as instruments and appliances used in medical science. The syringe with or without needle and needle for different uses have been classified separately. There is no separate classification of parts and accessories of these items in the said Chapter. - Decided against the Revenue

Summary

Issues:
1. Whether disposable syringes and needles cleared separately are eligible for concessional rate of duty or should be considered as part of a medical appliance.

Analysis:
The case involved an appeal by the Revenue against an order concerning the eligibility of a manufacturer of disposable syringes and needles for a concessional rate of duty under a specific notification. The Revenue contended that the syringes and needles, when cleared separately, should be considered as parts of a medical appliance, thus not eligible for the concessional rate. The main argument was that syringes and needles are complementary to each other and cannot function independently. However, the Tribunal examined the tariff headings and subheadings related to syringes and needles, finding that they are classified as instruments and appliances used in medical science. The Tribunal emphasized that there is no separate classification for parts and accessories of syringes and needles, supporting the manufacturer's eligibility for the concessional rate of duty.

The Tribunal considered the detailed analysis by the original authority, which relied on the description of tariff headings and subheadings to conclude that the concessional rate of duty was rightfully available to the manufacturer. Additionally, the Tribunal examined the Indian Standard for syringes and needles, noting that these items are identified for specific medical use and are made up of multiple parts. The fact that syringes and needles are attached to another appliance for functioning does not categorize them as parts of another appliance. Based on this analysis, the Tribunal dismissed the appeal by the Revenue, upholding the manufacturer's eligibility for the concessional rate of duty.

In conclusion, the Tribunal's decision was based on the classification of syringes and needles as standalone instruments and appliances in medical science, their specific use in the medical field, and the absence of separate classification for parts and accessories. The judgment emphasized that the manufacturer's products were correctly eligible for the concessional rate of duty, as determined by the original authority's examination and the supporting tariff classifications.