2000 (3) TMI 109 - AT - Customs

Summary

Issues involved:
1. Whether the exemption under Notification No. 23/98-Customs is available for the CCD Medical Video Camera imported by M/s. Karl Storz Endos Copy India (Pvt.) Ltd.

Analysis:
The appeal filed by M/s. Karl Storz Endos Copy India (Pvt.) Ltd raised the issue of whether the exemption under Notification No. 23/98-Customs is applicable to the CCD Medical Video Camera they imported. The Appellants argued that the camera is specifically designed to fit with sinoscopes and should be eligible for the exemption. They provided evidence, including a letter from the Managing Director stating the camera's limited use for sinoscopy and documentation indicating the camera's purpose. The Deputy Commissioner and the Commissioner (Appeals) denied the exemption, claiming the camera could be used interchangeably in various endoscopic applications. However, the Tribunal noted that there was no evidence to support this claim and found that the camera was indeed intended for sinoscopy based on the Appellants' demonstration and statements. The Tribunal also referenced previous legal judgments to support the interpretation that the camera's multiple uses did not disqualify it from the exemption under the notification.

The Department argued that the imported camera was multipurpose and could be used in various endoscopic applications, not solely with sinoscopes. They contended that the conditions of the notification required the camera to be fitted with sinoscopes to be eligible for exemption. However, the Tribunal found that the Department failed to provide evidence to support their claim that the camera was not specifically intended for sinoscopy. The Tribunal highlighted that the Appellants had demonstrated the camera's use in sinoscopy and that the Department's arguments lacked substantiation. The Tribunal also rejected the Department's interpretation of the notification's entry numbers, emphasizing that the specific language of the notification did not restrict the camera's eligibility based on its potential multiple uses. Ultimately, the Tribunal set aside the previous orders and allowed the appeal, granting the exemption to the imported CCD Medical Video Camera based on the evidence presented and legal principles applied.