Medical instrument classification for syringe needle cutter secured concessional duty and interim stay of recovery.

Syringe needle cutters supplied to medical institutions and shown to have no other use were treated as instruments used in medical sciences and classified under Heading 90.18. On that classification, the goods were held eligible for the concessional rate of duty under Notification No. 10/03-C.E. The classification also meant that the demand for differential duty and the associated penalty did not justify immediate recovery at the interim stage, so waiver of pre-deposit and stay of recovery were granted in favour of the assessee.

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Issues: Whether the goods described as syringe needle cutter were classifiable under Heading 90.18 and eligible for the concessional rate of duty under Notification No. 10/03-C.E. dated 01.03.2003, and whether pre-deposit and recovery of duty and penalty were required to be stayed.

Analysis: The goods were supplied to medical institutions for cutting used syringes and needles, and the record did not disclose any other use. On this basis, the item was treated as falling under Heading 90.18, which covers instruments and appliances used in medical, surgical, dental or veterinary sciences. Goods so classified were found to be eligible for the concessional rate of 8% under the notification. Since the classification favoured the assessee, the demand for differential duty and the penalty did not warrant immediate recovery at the interim stage.

Conclusion: The goods were held classifiable under Heading 90.18 and entitled to the concessional rate under the notification, and waiver of pre-deposit together with stay of recovery was granted in favour of the assessee.

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