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TMI Blog1997 (3) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... Health Services to the Govt. of India or the Ministry of Health and Family Welfare in the Govt. of India to the effect that the said hospital falls in either of the categories specified in the said Table; and (ii) the head of the hospital certifies in each case that the hospital equipments are meant for the use in the hospital and are not being manufactured in India and are essential for running or maintenance of the hospital. All hospitals run by - (a) the Central Government, a State Government, a Union territory Administration or a local authority; or (b) institutions established by or under any law for the time being in force; or (c) societies registered under any law for the time being in force relating to registration of societies, such societies being controlled by any of the authorities referred to in clause (a). Explanation - For the purpose of this notification, the expression Hospital includes any Institution, Centre, Trust, Society, Association, Laboratory, Clinic and Maternity Home, which renders medical, surgical or diagnostic treatment." 2. The importer had claimed that the benefit of the Notification for the purpose of supply to Government hospitals. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification was being extended to these goods. They have also stated that they had produced the copy of literature Excel of M/s. Euromedical Industries, Malaysia (manufacturer/supplier of the goods) which contained complete explanatory notes about functions etc. of the item in question. They have further relied on the term consumables not having been defined in the Customs Tariff, therefore, the definition as appearing in the Import and Export Policy cannot be brushed aside. They have relied on the definition of the term Catheter appearing in Mc Graw Hill Dictionary of Scientific and Technical which states : A hollow Tubulur device for insertion into a cavity, duct or vessel to permit injection or withdrawal of fluids or to establish patency of the passage way. 5. On this basis they stated that it cannot be considered as consumables as held by the lower authorities. 6. The Learned Advocate, Shri J.S. Agarwal submits that the Notification does not specify that the item should be imported directly by a hospital and he points out to the certificate dated 13-4-1988 issued by the authorities, Dr. K.K. Sen, Assistant Director General (ME) who has certified as follows: It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution, Centre, Trust, Society, Association, Laboratory, Clinic and Maternity Home, which renders medical, surgical or diagnostic treatment. The Notification exempts all equipment, apparatus and appliances including spare parts and accessories thereof, but excluding consumable items (hereinafter referred to as the hospital equipment ). Further it is noticed that the Notification does not restrict to Govt. hospital alone but covers to hospitals run by Union Territory Administration or a local Authority or institution established by or under any law for the time being in force, or societies registered under any law for the time being in force relating to such registration of societies, such societies being controlled by any of the authorities referred to in clause (a). It follows that all hospitals are entitled to import this either directly or through others; provided that they satisfied the conditions, that : (i) the importer produces the certificate from the Directorate General of Health Services to the Govt. of India or the Ministry of Health and Family Welfare in the Govt. of India to the effect that the said hospital falls in either of the categories specified in the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the end product. The dictionary meaning will also reflect on the same meaning as in the Import Policy inasmuch as the dictionary meaning merely states that the consumables are something which we can consume. Therefore, the consumption of an item is reflected in terms of participation or being required in a manufacturing process but does not form part of the end product. There is a lot of force in the submissions made by the Learned Advocate. Therefore, viewing from this point as well it is to be held that the item does not fall within the ambit of consumable items. The Learned DR during the course of argument was trying to impress that the item in question after use is discarded and therefore, it has to be taken in the meaning of consumable. This argument is not acceptable, as the meaning of this term consumable is not defined in the Notification and hence only its plain meaning as per its understanding in the common parlance is required to be accepted. 16. In a similar matter, the Tribunal in the case of Indian Telephone Industries Ltd. v. Collector of Customs, as reported in 1983 (13) E.L.T. 1012, while interpreting the term consumable item as appearing in Notification 211 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt while considering the term consumed and `consumption held that consumption consists in the act of taking such advantage of the commodities and services produced as constitutes the `utilisation thereof. It further held that for such commodity, there is ordinarily what is generally considered to be the final act of consumption. For some commodities, there may be even more than one kind of final consumption. The judgment further gave an example that grapes may be `finally consumed by eating them as fruits; they may also be consumed by drinking the wine prepared from `grapes . Again, the final act of consumption may in some cases be spread over a considerable period of time. Books, articles of furniture and painting may be mentioned as examples. The Supreme Court also further proceeded to say that another portion of the final act of consumption may be performed by his heir or successor-in-interest, a transferee. It held that there is for each commodity, what may be considered ordinarily to be the final act of consumption should not make us forget that in reaching that stage, the commodity may pass through different stage of production and for such different stages, there would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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