9911796707
TMI Blog2024 (5) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, the Note 2(u) of the Chapter 39 also becomes relevant which also confirms the same view. The goods in the instant case are specifically designed for medical use and supplied to actual users. From the Note Note I(L), it is apparent that the special blood storage bottles are specifically excluded from Chapter 90 and Heading 9018. This also implies that ordinarily such bottles could have been classified under Chapter heading 9018 but the HSN has specifically excluded and take it to heading 7010. There is no such heading excluding the boxes made for vaccine from Chapter heading 9018. Moreover this note also holds that containers of plastic for carrying blood would be classifiable under Chapter Tariff Heading 9018. Thus, the argument of Revenue does not hold any merit. Revenue has relied on the assertion that the Commissioner has ignored Interpretative Rule 3(a) before applying Interpretative Rule 3(c) of the Interpretative Rules for classification of the Customs Tariff. We find no mention of these Rules in the orders of the Commissioner. We find that Commissioner has specifically come to the conclusion that goods are more specifically classifiable under heading 9018 as medical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative pointed out that the Commissioner has relied on note 2(u) of Chapter 39 while ignoring the HSN Explanatory Notes to sub heading 3923. The HSN Explanatory Note to sub-heading 3923 specifically provide as follows: This heading covers all articles of plastic commonly used for packing or conveyance of all kinds of products. It is apparent that the heading 3923 would cover insulated packing material made for conveyance of all kinds of products which imply that those insulated boxes which are intended to carry vaccines or blood are also covered under heading 3923. 2.3 Learned authorized representative also relied on the HSN Explanatory Note-I(L) of heading 9018 which prescribes as follows: (L) Portable pneumo-thorax apparatus, blood transfusion apparatus, artificial leeches. The heading also covers sterile hermitically sealed containers of plastics, from which air has been evacuated but containing a small quantity of anti-coagulant and fitted with an integral donor tube and a phlebotomy needle, used for the collection, storage and transfusion of human whole blood. However, special blood storage bottles of glass are excluded (heading 70.10) 2.4 Learned Authorised Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or various laboratory tests has also been certified by the National Aids Research Institute by its certificate dated 26-12-01. The National Institute of Virology, Pune has certified that the items are consumable products which are used to carryout research and they are labwares and not instruments and that they are incinerated after use for biosafety measures. 8. In view of the above, the products cannot fall for classification under CET 9027.00 and the demand confirmed on the basis of the above classification cannot be sustained. We, therefore, set aside the duty demand and penalty and allow the appeal. However, we make it clear that we are not accepting the contention of the assessee that the goods fall for classification under CET 9018.00, for the reason that they are neither instruments nor appliances used in medical surgical dental or veterinary sciences including scientigraphic apparatus other electro magnetic apparatus covered by this heading but appear to be articles of plastics used in laboratory. Consequently, the learned authorized representative sought that the impugned order should be set aside. 3. Learned counsel Shri Hardik Modh appearing for M/s Blow Kings and Plast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atula, etc.). Such articles are classified in this heading only when they are clearly identifiable as being for medical or surgical use by reason of their special shape, the ease with which they are dismantled for sterilization, their better quality manufacture, the nature of the constituent metals or by their get-up (frequently packed in cases or boxes containing a set of instruments for a particular treatment: childbirth, autopsies, gynecology, eye or ear surgery, veterinary cases for parturition, etc.). 4. We have considered the rival submissions. 5. The product in question are undisputedly, the insulated boxes designed as per specifications of WHO, UNICEF, Ministry of Health and Family Welfare and manufactured out of plastics. While Revenue is of the opinion that the goods are classifiable Chapter Tariff Heading 3923 whereas, the respondents have sought the classification under heading 9018. The heading 3923 and 9018 reads as follows : Chapter 39 Tariff Item Description of goods Unit Rate of duty (standard) Rate of duty (Preferential) 3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics. 39231030 - - - -Insulate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants fall for classification under CET sub-heading 9027.00 as held by the Revenue or under CET sub-heading 9018.00 as contended by the assessee. The rival entries are set out herein below :- 9018.00 Instruments and appliances used in medical, surgical, dental or veterinary sciences including scientigraphic apparatus, other electro medical apparatus and sight testing instruments. 9027.00 Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like, instruments and apparatus for measuring or checking quantities of heat, sound or light (including exposure meters); microtomes. It is seen that in the said case, the goods are described as laboratory ware. The Tribunal after examining the issue came to the conclusion in the said case the National Institute of Virology, Pune certified that the items are consumlable products which are used to carry out research and that they are labwares and not instruments and that they are incinerated after use for biosafety measures. In this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riate. 8. Learned counsel for the respondent also relied on the decision in the case of Becton Dickinson 1998 (103) ELT 177 (Tri.) wherein the issue related to the classification of Destruclip. Destruclip is designed to destroy used disposable syringe and needles to prevent misuse through unauthorized recycling. In the said goods after examining the issue in detail, it observes as follows: 5. We have carefully considered the arguments on both sides and the records of the case. We have also inspected the sample of the product, when its functioning was demonstrated to us. We find that the product is specially designed for uses as follows : (a) its design is totally dedicated to destroy by clipping the plastic body of the syringe and the steel needles, one each at a time; (b) the 2 orifices are having respective diameters only to accept these and nothing else can be cut; (c) the contaminated cut ends are automatically falling into a receptacle so that the user need not touch them for risk of infection, and when the chamber is full, it can be emptied at periodic intervals; (d) that the box (housing) containing the cutting devices and receptacles is a rectangular cube, in which these ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Chapter 39 also becomes relevant which also confirms the same view. The goods in the instant case are specifically designed for medical use and supplied to actual users. Revenue has relied on the classification of blood storage bottles of glass which are specifically excluded from heading 7010 by virtue of Note I(L) which reads as under: (L) Portable pneumo-thorax apparatus, blood transfusion apparatus, artificial leeches. The heading also covers sterile hermitically sealed containers of plastics, from which air has been evacuated but containing a small quantity of anti-coagulant and fitted with an integral donor tube and a phlebotomy needle, used for the collection, storage and transfusion of human whole blood. However, special blood storage bottles of glass are excluded (heading 70.10) From the above Note, it is apparent that the special blood storage bottles are specifically excluded from Chapter 90 and Heading 9018. This also implies that ordinarily such bottles could have been classified under Chapter heading 9018 but the HSN has specifically excluded and take it to heading 7010. There is no such heading excluding the boxes made for vaccine from Chapter heading 9018. M ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
