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TMI Blog1983 (8) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... :- Tribunal s File No. No. of Appellate Collector s Order-in-Appeal No. of Assistant Collector s Order-in-Original 1. 513/80 S/49-23/80 Air, dated 25-7-1980 S/12-1036/79-80 ACU, dated 24-10-1979 2. 367/80 S/49-625/79 Air, dated 27-11-1979 S/12-1809/78-79, dated 22-2--1979 3. 91/81 S/49-936/80 Air dated 21-11-1980 S/12-3523/79-80 ACU dated 4-8-1980 4. 537/81 S/49-63/80 Air, dated 20-5-1980 S/12-1037/79-80 ACU, dated 22-11-1979. 2. These appeals relate to the classification under the Customs Tariff Schedule of what the appellants have called medical reagents . For the sake of clarity, and without pre-judging the issue, it may be mentioned that the imported goods were made of filter paper which had been impregnated with various chemicals. As imported, they were in the form of sheets. These sheets were cut by the appellants and attached to thin strips of plastic. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be tested. Shri Ganesh advanced the following further arguments :- (1) The product at the time of importation is capable of performing the same function as the product which leaves the appellants factory after being attached to a plastic sheet which is cut into strips; (2) The imported goods are comparable to the medical appliances mentioned above, and should, therefore, be regarded as medical appliances in themselves; (3) Shri Ganesh quoted from the work Diagnostic Aids in the Practice of Veterinary Medicine by Harry H. Bewier. The above work contains the following passage :- Urinalysis by the clinician can be performed very quickly and easily, thanks to the developers of tablet and dip and read test. If the clinician does not take full advantage of these important diagnostic tools he is missing much helpful information . Shri Ganesh referred to the expression diagnostic tools in the above extract. According to him, this expression is akin to the word appliances ; (4) Shri Ganesh also quoted GRADHWOHL S CLINICAL LABORATORY METHODS AND DIAGNOSIS in which there is the following statement : A use of special tablets stix and tapes is available for extremel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmerce understand them. In this connection, he cited the judgment of the Supreme Court in the case of Union of India v. MMTC (AIR 1972 S.C. 2551) and another judgment of the Supreme Court in the case of Dunlop India(AIR 1977 S.C. 597) = 1983 E.L.T. 1566. He also referred to an order of the Tribunal in the case of Delhi Surgical and Dressings, reported in 1983 E.L.T. 575. 8. Shri Ganesh also referred to certain judgments in regard to Sales Tax, reported in AIR 1977 S.C. 32; 33 STC 333; and 31 STC 625. 9. Shri Ganesh also argued that prior to the introduction of the new Tariff through the Customs Tariff Act, 1975, the appellants had been importing the same chemical reagents . According to him these were being classified under Item No. 28 of the old Tariff as contained in the Indian Tariff Act, 1934, as chemicals, drugs and medicines, all sorts not otherwise specified . He argued that this would justify the assessment of the goods under the new Tariff within Heading No. 38.01/19. 10. Opposing the appellants stand, Shri Kunhikrishnan pointed out that they had themselves referred to the goods as raw materials in their memorandum of appeal. It could also be seen from the ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15. Shri Kunhikrishnan cited the judgment of the Supreme Court the case of Chemicals and Fibres India Limited, reported in 1982 E.L.T. 917, for the proposition that when dealing with products which are highly technical and scientific in character, the words used in the Statute would have to be given only their technical or scientific meaning. In this case the goods were of a technical nature and therefore one should not go by trade terminology. 16. Shri Kunhikrishnan also referred to the three affidavits filed by the appellants. These were from three pathologists. He pointed out that all the three affidavits were in identical terms and were evidently given at the request of the appellants. He submitted that while a competent technical authority could testify through an affidavit, the contents must be within the field of his competence. The pathologists who had given these affidavits were not competent to suggest what the tariff classification should be, as the last sentence of each affidavit purported to do. He further submitted that the contents of the affidavits were basically relevant to the final product and not to the goods imported. 17. In reply, Shri J.R. Cama argue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while the imported material is no doubt very important, it is not by itself sufficient. It is necessary to attach it to a plastic strip so that it can be conveniently dipped inside the specimen, without wastage. The strips are contained in a bottle which contains a desiccant to absorb moisture, and to preserve the sensitive strips from contamination. It is also essential to have a Colour Chart with the aid of which the concentration of glucose, etc., can be read. Thus, the plastic strip with the imported material at the tip, the bottle, and particularly the Colour Chart affixed to the bottle, without which the percentage of glucose, etc., cannot be determined, form a set of components each of which is necessary for the test to be carried out. It is in this form that the goods are finally marketed, and it is in this form that they are suitable for the purpose for which they are marketed. There could be a case to argue that the entire set of articles as marketed would constitute a diagnostic or medical appliance. But this does not mean that the imported material in the form of sheets is itself a diagnostic or medical appliance. All that can be done with this material is to dip it in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontained scheme of the Customs Tariff Schedule. 21. The same observations would apply to the affidavits on which the appellants have relied. What these affidavits go to show is that the marketed goods would be very useful for the purposes of analysis and diagnosis. They do not carry any authority in the matter of classification for Customs Tariff purposes of the imported goods. 22. Shri Ganesh had also referred to a letter form the foreign manufacturers which he said was on the way to them, and whose contents he indicated. He stated that this was in response to a query from our predecessor Bench (vide para 5 above). From the record, we do not find that a specific query in this regard was addressed to Shri Ganesh when the matter came up before them on 22-6-1983. The record shows that Shri Ganesh sought permission to file a paper book, which would include copies of show cause notices and replies as also copies of the memoranda of appeal. While allowing him to file the paper book, it was recorded that the question of admissibility of the documents which were not already on the Revenue records would be considered at the time of hearing. We find that the letter now being referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Kunhikrishnan referred to different Interpretative Rules which might apply to the goods, and argued that whichever one was invoked, the appropriate description would be as impregnated paper . We do not think that either Rule 2(b) or Rule 3(b), invoked by Shri Kunhikrishnan, would apply to this case. It appears to us that since we have to choose between the expression medical........instruments and appliances and impregnated paper or paper board , the choice is clearly determined by Rule 3(a) of the Interpretative Rules, which states that the Heading which provides the most specific description shall be preferred. We have no doubt that of the two the more specific description is the latter one. 25. Shri Ganesh had drawn our attention to the Tribunal s Order in the case of Delhi Surgical Dressings, reported in 1983 E.L.T. 575. In that case the goos consisted of Blood counting chambers and Pipettes . It was held that the blood counting chambers could not be treated as laboratory glassware because they were not plain glass slides but made by fusing into the polished surface of the counting areas, a very thin semi-transparent layer of Rhodium with greatest precision. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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