External-use defibrillators denied exemption where notifications covered only internal-use devices and optional paddles made no difference.

Defibrillators cleared by the assessee were held outside the scope of Notifications No. 8/96-C.E. and No. 4/97-C.E. because the exemption had been narrowed and no longer covered defibrillators for external use. The product was described as a portable defibrillator/monitor meant primarily for external defibrillation, and its possible use in open-heart surgery depended only on optional internal paddles. The availability of such accessories did not convert an external-use device into an internal-use defibrillator for exemption purposes, so the claimed exemption was not available.

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Issues: Whether defibrillators cleared by the appellant were entitled to exemption under Notification No. 8/96-C.E. dated 23-07-1996 and Notification No. 4/97-C.E. dated 01-03-1997.

Analysis: The relevant notifications had narrowed the description of exempted goods and no longer covered defibrillators for external use, while the earlier notification had expressly included both internal and external defibrillators and referred to internal defibrillator paddles. The product described by the appellant was essentially a portable defibrillator/monitor for external use, and its use during open-heart surgery depended on optional internal paddles. The exclusion of external-use defibrillators could not be overridden merely because such optional accessories were available. The goods, therefore, could not be equated with defibrillators for internal use as contemplated by the exemption notifications.

Conclusion: The appellant was not entitled to exemption under Notification No. 8/96-C.E. or Notification No. 4/97-C.E. in respect of its defibrillators.

Ratio Decidendi: A product primarily meant for external defibrillation does not qualify as an exempted internal-use defibrillator merely because it can be used in surgery with optional internal paddles, especially when the exemption notification excludes external-use defibrillators.

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