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2018 (10) TMI 224 - AT - CustomsClassification of import goods - “SYNVISC HYLAN G-F 20 medical device in sterile solution form for treatment of Osteoarthritis” - Importer claimed classification of these as medical devices under Customs Tariff No. 90214090 and claimed the benefit of exemption notification No. 21/2002 (S.No. 370) and cleared the goods at nil rate of duty as applicable - demand of differential duty - extended period of limitation - penalty u/s 114A. Whether SYNVISC HYLAN G-F 20 imported by the appellant assessee is rightly classifiable under chapter heading No. 9021 or under chapter heading 3006 and consequently whether any differential duty liability arises? - Whether the interest is payable and penalties imposable? - Whether extended period of limitation can be invoked? Held that:- Chapter heading No. 3006 includes products such as Sterile laminaria, blood grouping reagents, diagnostic reagents designed to be administered to the patients, dental cements and other dental fillings, chemical contraceptive and Gel preparations used in human or veterinary medicines as a lubricant for parts of the body for surgical operations or physical examinations or as a coupling agent between the body and medical instruments. Chapter No. 9021 covers “orthopaedic appliances including crutches, surgical belts and trusses, splints and other fracture appliances, artificial parts of the body, hearing aids and other appliances which are worn or carried, or implanted in the body to compensate for a defect or disability” - it is found from the expert opinion of the Professor & Head of Rheumatology of Nizam’s Institute of Medical Sciences that the imported product is an absorbable implant in the knee joint for pain relief and improvement of joint mobility of the knee joints. There is nothing in this order to show why the goods which are imported cannot be classified as medical devices as claimed by the appellant. The literature produced by appellant as well as expert opinion produced by them clearly show that the goods in question are known as and used as implantable medical devices by doctors. Customs Tariff heading 3006 covers Gel preparations designed for humans as lubricant for parts of the body for surgical operations. This product does not appear to fall in this category as the purpose of this product is to facilitate lubricant of the joints and not to facilitate lubricant during the surgical operation. It compensates a defect which arises during osteoarthritis in the form of lack of lubrication in the knees. Therefore, the product is to be correctly classifiable under Customs Tariff Heading 9021 as an implantable medical device - the demand of duty, interest and penalty do not survive. Extended period of limitation - Held that:- Once the appellant has declared what is being imported in the invoice and the Bill of entry, they cannot be faulted for claiming a classification which, according to them is correct - Nothing prevented the assessing officer from seeking further literature and information and re-determining the classification if the classification claimed in the Bill of Entry is felt to be incorrect. Clearly, there is no evidence on record that the appellant assessee had misdeclared the nature of goods - Extended period cannot be invoked. Appeal allowed - decided in favor of appellant.
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