TaxTMI 
TaxTMI 
TaxTMI 
The Hon'ble CESTAT, Chennai, in Commissioner of Customs, Chennai Versus M/s. Karma Health Care Ltd. - 2026 (4) TMI 710 - CESTAT CHENNAI held that the essential character of 'wheelchairs with toileting facilities' remains mobility. Hence, such goods are classifiable under Customs Tariff Heading ('CTH')8713 and are eligible for exemption under Notification No. 12/2012-Cus, as the addition of a toileting feature does not alter their primary function.
Facts:
- M/s. Karma Health Care Ltd. ('the respondent') imported 'wheelchairs for use by physically disabled persons (for toileting)' and classified them under CTH 87139090, claiming exemption under Notification No. 12/2012-Cus.
- Based on an audit objection, the Revenue initiated proceedings to reclassify the goods under CTH 9402 as 'commode chairs with wheels,' which would make them ineligible for the exemption.
- Adjudicating authorities argued that the primary purpose of the product was toileting rather than mobility and that the wheels were merely an incidental feature. The Commissioner (Appeals) ruled in favour of the importer by Order in appeal ('impugned order'), holding that the essential character of the goods remained that of a wheelchair. The Revenue subsequently appealed this decision before the tribunal.
Issues:
- Whether wheelchairs equipped with a toileting facility are classifiable under CTH 87139090 as wheelchairs or under CTH 9402 as commode chairs/medical furniture?
- Whether the impugned goods are eligible for exemption under Notification No. 12/2012-Cus?
Held:
The Hon'ble CESTAT, Chennai, in Commissioner of Customs, Chennai Versus M/s. Karma Health Care Ltd. - 2026 (4) TMI 710 - CESTAT CHENNAI held as under:
- Observed that Rule 1 and Rule 3(b) of the General Rule of Interpretation ('GRI') provide that goods are to be classified according to the terms of the headings and, in the case of composite or multifunctional goods, according to their essential character.
- Noted that the description of the goods as 'wheel chair for use by physically disabled persons (for toileting)' itself indicates that the primary identity of the product is that of a wheelchair. The addition of a toileting facility does not alter the fundamental nature of the product. The goods resemble a wheelchair and facilitate movement, thereby establishing mobility as the essential function.
- Rejected the classification under Heading 9402 as it covers specialised medical furniture having features such as reclining, rotating or elevating mechanisms. The impugned goods do not possess such characteristics and are not intended to perform any medical or surgical function. They are primarily designed for mobility and therefore cannot be classified under Heading 9402.
- Relied on the judgment of Hon'ble Supreme Court in COLLECTOR OF CENTRAL EXCISE, SHILLONG Versus WOOD CRAFT PRODUCTS LTD. - 1995 (3) TMI 93 - Supreme Court and COMMISSIONER OF CENTRAL EXCISE, PONDICHERRY Versus ACER INDIA LTD. - 2004 (9) TMI 106 - Supreme Court in which it was held that classification must be determined based on the essential character and principal function of the goods.
- With respect to the applicability of exemption notification 12/2012-Cus, it does not prescribe any restriction regarding design, configuration or additional features of the product. The language employed in the notification is broad, intended to extend the benefit to all forms of mobility aids designed for disabled persons. Hence, once the goods are found to be classifiable under Heading 8713 as wheelchairs or carriages for disabled persons, the exemption follows as it is.
Hence, Hon'ble CESTAT rejected the appeal and allowed the exemption under Notification No. 12/2012-Cus.
Relevant Headings & Notifications:
- CTH 8713: CARRIAGES FOR DISABLED PERSONS, WHETHER OR NOT MOTORISED OR OTHERWISE MECHANICALLY PROPELLED
- CTH 9402: MEDICAL, SURGICAL, DENTAL OR VETERINARY FURNITURE (FOR EXAMPLE, OPERATING TABLES, EXAMINATION TABLES, HOSPITAL BEDS WITH MECHANICAL FITTINGS, DENTISTS' CHAIRS); BARBERS' CHAIRS AND SIMILAR CHAIRS, HAVING ROTATING AS WELL AS BOTH RECLINING AND ELEVATING MOVEMENTS; PARTS OF THE FOREGOING ARTICLES
- Notification No. 12/2012-Cus: Provides exemption for wheelchairs and other carriages designed for use by disabled persons.