Customs classification of imported dialyzers under the correct tariff heading supported exemption and defeated the duty demand.

Imported dialyzers were treated as classifiable under CTH 90189031, with the corresponding customs exemption notifications available to the importer. A departmental circular had later suggested classification under CTH 84212900 for purifier dialyzers, but the earlier classification had already been accepted and the issue was covered by authorities cited before the Tribunal. On that basis, the denial of exemption was rejected and the duty demand was found unsustainable.

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Issues: (i) Whether imported dialyzers were classifiable under CTH 90189031 and eligible for the benefit of the relevant customs exemption notifications, or liable to be classified under CTH 84212900 with denial of exemption.

Analysis: The imports had consistently been classified under CTH 90189031 and had been allowed the benefit of the exemption notifications. The dispute arose after a departmental circular took the view that purifier dialyzers should be classified under CTH 84212900. The earlier view supporting the assessee's classification had already been accepted in the authorities cited before the Tribunal, and the matter was treated as covered by those decisions. On that basis, the Tribunal held that the duty demand could not be sustained.

Conclusion: The classification adopted by the assessee was accepted and the denial of exemption was rejected; the demand of duty was held unsustainable, in favour of the assessee.

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