Classification of medical oxygen equipment upheld as nebulised humidifiers, securing exemption under the excise notification.

The goods described as Mediflow BPC Oxy Flow Meter were treated as nebulised humidifiers and medical equipment, not ordinary flow-meters, because the invoice and record showed sale as a complete package with a nebuliser unit as the vital component for regulated delivery of oxygen and medicine. On that factual basis, the exemption under Notification No. 60/95-C.E. was found applicable, and the Revenue's challenge failed.

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Issues: Whether the goods described as Mediflow BPC Oxy Flow Meter were classifiable as ordinary flow-meters or as nebulised humidifiers used as medical equipment, and consequently whether they were eligible for the benefit of Notification No. 60/95-C.E. dated 16-3-95.

Analysis: The goods were found not to be ordinary flow-meters. The invoice and the evidence on record showed that the product was sold as a complete package, namely Mediflow BPC Oxy Flow Meter, with a nebuliser unit forming the vital part of the equipment for regulated delivery of oxygen and medicine to patients. On this basis, the authorities below had treated the goods as medical flow-meters or nebulised humidifiers and extended the exemption. No infirmity was found in that appreciation of the evidence.

Conclusion: The goods were held to be nebulised humidifiers and medical equipment, and the benefit of Notification No. 60/95-C.E. was held to be available. The Revenue's challenge failed.

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