Tribunal and Supreme Court confirm tariff classification for Orthopaedic Heating Pads/Belts/Bands

The Tribunal upheld the classification of Orthopaedic Heating Pads/Belts/Bands under Tariff Item 9021 10 00, dismissing the Department's proposal for duty under different tariff items. The Supreme Court affirmed this decision, emphasizing the product's orthopaedic nature for relief from swelling and pain. Additionally, the Tribunal dismissed the demand for duty on bandages, noting that the appellant did not manufacture them but traded pre-packed bandages. Consequently, the appeal was allowed, providing relief to the appellant in both classification and duty demands.

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Issues Involved:
1. Classification of Orthopaedic Heating Pads/Belts/Bands.
2. Demand of duty on Bandages.

Detailed Analysis:

1. Classification of Orthopaedic Heating Pads/Belts/Bands:
The primary issue revolves around the classification of Orthopaedic Heating Pads/Belts/Bands. The appellant classified these products under Tariff Item 9021 10 00 of the Central Excise Tariff Act, 1985, which carries a nil rate of duty. Conversely, the Department proposed classifying "Heating Belts" under Tariff Item 9018 90 99 as "other Electro-Medical Apparatus/Appliances" and "Bandages" under Tariff Item 3005 90 40, both of which are chargeable to duty.

The Tribunal found the matter to be covered by its previous decision in the appellant's own case (Ascent Meditech Ltd. vs. C.C.E., Vapi - 2014 (309) ELT 712 (Tri-Ahmd.)), which was affirmed by the Hon’ble Supreme Court (C.C.E. vs. Ascent Meditech Ltd. - 2015 (320) ELT A281 (SC)). The Supreme Court dismissed the Department's appeal, stating that it was "devoid of any merit."

The Tribunal's decision emphasized several points:
- The products are marketed as orthopaedic heating belts recommended for relief from swelling and pain. The adjudicating authority's reliance on Chapter Note 6(i) of Chapter 90 was deemed misplaced, as it pertains to preventing or correcting bodily deformities, which can include internal issues like swelling and pain.
- Certificates from practicing orthopaedicians indicated that the belts are recommended for treating swelling and pain. The adjudicating authority's dismissal of these certificates was incorrect.
- The classification under Chapter Heading 9018 was found inappropriate, as it pertains to instruments and appliances used for diagnosis, which does not apply to orthopaedic heating belts.
- The HSN explanatory notes supported the classification of the product under Chapter Heading 9021, which covers orthopaedic appliances designed for preventing or correcting bodily deformities or supporting organs after illness or operation.

The Tribunal concluded that the specific heading (9021) should prevail over the general heading (9018), and the product merits classification under Tariff Item 9021 10 00.

2. Demand of Duty on Bandages:
The Department contended that bandages should be classified under Tariff Entry 3005 90 40 and be chargeable to duty. The appellant argued that they do not manufacture these bandages but trade them, receiving them in packed condition from various manufacturers who have already paid the appropriate duty.

The Tribunal referenced its decision in the appellant's previous case, which was affirmed by the Supreme Court. It was observed that the bandages were received in completely packed condition from job workers, and no further manufacturing activity took place at the appellant's premises. Therefore, the bandages could not be subjected to any additional duty as Central Excise duty is levied on manufacture.

Conclusion:
The Tribunal set aside the impugned order and allowed the appeal with consequential relief to the appellant. The classification of Orthopaedic Heating Pads/Belts/Bands under Tariff Item 9021 10 00 was upheld, and the demand of duty on bandages was dismissed due to the lack of manufacturing activity by the appellant.

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