Functional classification of imported medical goods can control OGL eligibility and duty exemption where expert certificates prove their true nature.

Expert medical evidence showed that Foley Balloon Catheters were functionally suction catheters and usable as life-saving equipment. On that classification, the goods fell within the Open General Licence entry and the relevant customs duty exemption notifications, so denial of duty-free clearance was not sustainable. The contrary customs inference and the importer's earlier statement were treated as insufficient against the medical certificates from recognised hospital and health authorities. As the goods were properly classifiable within the exempt entry, confiscation, redemption fine, and penalty were also unsustainable and were set aside.

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Issues: Whether the imported Foley Balloon Catheters were to be treated as suction catheters eligible for import under Open General Licence and for duty exemption, and whether the confiscation, redemption fine, and penalty were sustainable.

Analysis: The dispute turned on the true nature of the imported goods. The record contained medical opinions from the Directorate General of Health Services, the Head of the Department of Urology at AIIMS, and the Assistant Dean, KEM Hospital, all supporting the view that Foley Balloon Catheters fell within the term suction catheters and were usable as life-saving equipment. Those certificates were preferred over the contrary inference drawn from the customs investigation and the importer's earlier statement, which could not outweigh the expert medical evidence. Once the goods were found to be suction catheters, they fell within the OGL entry and also within the duty-exempt life-saving equipment list under the relevant notifications.

Conclusion: The imported goods were suction catheters, were entitled to clearance under OGL, and qualified for customs duty exemption. The confiscation, redemption fine, penalty, and denial of duty-free clearance were set aside.

Final Conclusion: The appeal succeeded and the importer obtained full relief on the classification and import-control issue.

Ratio Decidendi: Expert medical certification establishing the functional identity of goods prevails over a contrary customs inference, and goods falling within a specific OGL and duty-exemption entry cannot be denied clearance on the basis of misdescription once their true character is proved.

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