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TMI Blog1991 (3) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 163/76 read with Notification No. 279/83 and a bond obliging the importers to produce a duty-exemption certificate from the Director General, Health Services, New Delhi. On the Audit objecting to the duty free release on the ground that Caesium Pellets were consumable and were not covered by the notifications, a demand notice was issued for a sum of Rs. 62,472.46. In due course, the Assistant Collector of Customs, by order dated 15-4-1989, confirmed the demand on the ground that Caesium Pellets being inorganic chemicals falling under Heading No. 28.44 of the Customs Tariff Schedule and not fabricated equipment, were consumables, not eligible for exemption in terms of the above notification. In appeal, the Collector (Appeals) took the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essential for the working of the Selectron machine used for treatment of cancer of the uterine cervix. The radioactive caesium is used in the machine in the form of a stainless steel pellet which totally covers a glass activated caesium bead. The machine has a pneumatic mechanism for transfer of active pellets into the applicator which is already embedded into the patient s vaginal cavity and into the uterus. 5. We have carefully considered the submissions of both sides and perused the record. 6. Notification 163/76 dated 2-8-1976 exempts inter alia radio-active isotopes of Caesium falling within Chapter 28 of the First Schedule to the Customs Tariff Act, 1975, when imported into India from payment of the duty of Customs leviable there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm an essential part of the machine without which the machine cannot perform the function for which it is designed. In this context, we note that the goods in question are not mere Caesium Pellets as such but pellets enclosed in a stainless steel container which totally covers glass activated caesium beads. This apart, caesium pellets having an effective life of over 40 years and a half life of 30 years can scarcely be described as consumable stores. The expression consumable stores has not been defined in the notification and the purpose of the notification being to remove the duty burden on approved hospital equipment, the term consumables should be construed not literally but liberally having regard to the spirit of the notification. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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