Medical equipment accessories exemption upheld for imported batteries, cords and chargers despite Chapter 85 classification.

Notification No. 21/2002-Cus. extends concessional duty to medical equipment and accessories thereof, including goods falling under Chapter 90 or any other Chapter of the Customs Tariff. The decisive question was whether batteries, power cords and battery chargers imported for a neuro stimulation system were accessories of the medical equipment; classification under Chapter 85 did not by itself defeat exemption. In the absence of any independent reason or material showing that the goods were not accessories, the exemption was available and the Revenue's challenge failed.

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Issues: Whether batteries, power cords and battery chargers imported for a neuro stimulation system were entitled to exemption under Notification No. 21/2002-Cus. as accessories of medical equipment, despite their classification under Chapter 85.

Analysis: Serial No. 363 of Notification No. 21/2002-Cus. extends concessional duty to medical equipment and accessories thereof falling under Chapter 90 or any other Chapter of the Customs Tariff. The decisive question was whether the imported items were accessories of the medical equipment. The fact that the goods were classifiable under Chapter 85 did not by itself exclude the benefit of the notification. The adjudicating authority had not given any independent reason for denying the notification, and no material was produced to show that the imported items were not accessories of the medical equipment.

Conclusion: The imported goods were eligible for the exemption as accessories of medical equipment, and the Revenue's challenge failed.

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