Exemption for medical infusion sets sustained where evidence showed long-term use for intravenous and parenteral treatment.

Entitlement to exemption under Notification No. 339/86 depended on whether the infusion set was for long-term use. Evidence including medical certificates and prior departmental consideration supported the finding that the goods were used for giving intravenous fluids and parenteral drugs to indoor patients over an extended period. That reasoned factual finding was not displaced by any contrary evidence from the Revenue, so the exemption claim was sustained.

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Issues: Whether the assessee's product, infusion set, was eligible for exemption under Notification No. 339/86 on the ground that it was for long-term use.

Analysis: The assessee had produced evidence before the appellate authority, including medical certificates and earlier departmental consideration, to show that the infusion sets were used for giving intravenous fluids and parenteral drugs over a long period in indoor patients. The appellate authority had remanded the matter only to examine the evidence relating to use of the goods, and on remand recorded a detailed finding that the product was for long-term use and therefore within the benefit of the notification. No contrary evidence was produced by the Revenue to dislodge that finding.

Conclusion: The product was held to be for long-term use and entitled to exemption under Notification No. 339/86.

Final Conclusion: The Revenue failed to establish any basis to interfere with the appellate finding, and the exemption claim of the assessee stood sustained.

Ratio Decidendi: Where entitlement to an exemption notification turns on the end use of the goods, a reasoned finding based on evidence will not be disturbed in the absence of rebuttal evidence.

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