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of <h1>Imported Glucose Meters Classified for Chemical Analysis, Not Medical Use</h1> The Tribunal held that the imported Glucose meters should be classified under Heading 90.27 for instruments for chemical analysis, rather than Heading ... Classification of Glucose meters - Classification under Customs Tariff Heading 90.18 or under Heading 90.27 - exemption from basic customs duty was claimed under notification number 24/05-Cus dated 1.3.2005 - Held that:- essential character of the goods in both cases is to draw the blood and test it for glucose content. With changes in technology, the glucose meter can be expected to become more sophisticated and compact without change in the essential function. The essential function of a Glucose meter is to draw the blood as well as test the blood. The testing of blood and then its analysis for indicating blood sugar content as revealed by the Glucometer is undisputedly the outcome of a chemical analysis. That is, the Glucometer is an instrument for chemical analysis. Having noted the essential characteristic of both- a Glucose meter system with strips and lancets and the Glucose meter without strips, it would be illogical to say that the Glucose meter with strips will be classifiable under heading 90.18 whereas the Glucose meter without strips will get classified under heading 90.27. - product in question is not an instrument which is generally used in laboratories. Therefore by virtue of the Explanatory Note under Heading 90.18, the impugned goods, that is Glucose meters are classifiable under heading 90.27. - impugned goods namely Glucose meters are classifiable under heading 90.27 and are eligible for exemption under notification No. 24/05-CUS dated 01.03.2005. - Impugned order is set aside - Decided in favour of assessee. Issues: Classification of imported goods under Customs Tariff Heading 90.18, Exemption from basic customs duty under notification number 24/05-Cus dated 1.3.2005Classification of Goods:The appeal challenged the classification of imported blood Glucose meters under Customs Tariff Heading 90.18. The appellant sought classification under tariff item number 902780.90, while the Department classified them under Heading 90.18. The Commissioner (Appeals) upheld the classification under Heading 90.27, leading to the appeal.Contentions of the Appellant:The appellant argued that the Glucose meter should be classified under Heading 90.27 as an instrument for chemical analysis, citing an earlier decision by the Commissioner (Appeals) and international practices. The appellant emphasized that the Glucose meter's function is to undertake chemical analysis of blood, supporting its classification under Heading 90.27. Referring to notification No. 6/2006 and HSN Explanatory Notes, the appellant contended that the Glucose meter is the essential component for classification.Arguments of the Revenue:The Revenue, represented by the learned AR, supported the findings of the Commissioner (Appeals) regarding the classification of the goods under Heading 90.27.Judgment and Analysis:The Tribunal analyzed the essential character of the goods, emphasizing that the Glucose meter's function is to draw and test blood for glucose content, constituting chemical analysis. The Tribunal rejected the argument that the presence of additional components like lancets and test strips should impact classification. By referring to the HSN Explanatory Notes and the Customs Tariff Act, the Tribunal concluded that Heading 90.27, covering instruments for chemical analysis, was more specific and appropriate than Heading 90.18.HSN Explanatory Notes Analysis:Further examination of the HSN Explanatory Notes revealed that Heading 90.18 primarily covers instruments used in professional practice, unlike Glucose meters commonly used by individuals at home or in workplaces. The Notes clarified that Heading 90.18 does not cover instruments used in laboratories for testing blood, tissue fluids, etc., which aligns with the classification of Glucose meters under Heading 90.27.Final Decision:The Tribunal held that the Glucose meters were classifiable under Heading 90.27 and eligible for exemption under notification No. 24/05-CUS dated 01.03.2005. Consequently, the impugned order was set aside, and the appeal was allowed.Conclusion:The judgment centered on the correct classification of imported Glucose meters, emphasizing the essential function of the Glucose meter in chemical analysis. Through detailed analysis of the HSN Explanatory Notes and legal provisions, the Tribunal determined that Heading 90.27 was the appropriate classification for the goods, overturning the Commissioner (Appeals)' decision.
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