1990 (11) TMI 232 - AT - Customs

Classification of Red-O-Pack as Suction Catheter under exemptions, but not Red-on-Drain. Appeal partially allowed.

The Tribunal classified Red-O-Pack as a Suction Catheter under the relevant exemptions, extending OGL benefits and duty exemption. However, Red-on-Drain ... Life saving equipment Issues:Classification of imported goods under OGL Appendix 6, ITC Policy 1988-91, and relevant notifications.Detailed Analysis:The appellants imported goods, including Red-O-Pack and Red-on-Drain, claiming clearance under OGL Appendix 6 Sl. No. 42 of the ITC Policy 1988-91 and exemption from duty under specific notifications. The department contended that the goods required a specific license as consumer goods under the ITC Policy and were classified under Tariff Heading 9018.90 for duty imposition.The dispute revolved around whether the goods, particularly Red-O-Pack, qualified as Suction Catheters under the relevant exemptions. The appellants relied on a clarification from the Directorate General of Health Services (DGHS) and suppliers' catalog, asserting that Red-O-Pack was akin to Suction Catheters. The department argued that Red-O-Pack did not match the description in the ITC Policy and was rightly classified under Tariff Heading 9018.90.The Tribunal carefully considered the evidence presented. It noted that the DGHS clarification explicitly categorized Red-O-Pack as a Suction Catheter under the relevant notification. The description of Red-O-Pack in the exemption notification aligned with Suction Catheters, warranting the goods to be treated as such under the ITC Policy. The Tribunal also found merit in the suppliers' catalog, indicating the functional similarity between Red-O-Pack and Suction Catheters. Consequently, the Tribunal extended the OGL benefit and exemption notification to Red-O-Pack.However, regarding Red-on-Drain, the Tribunal found insufficient evidence to support the appellants' claim that it was a part or accessory of Red-O-Pack. Without a catalog confirming this relationship, the Tribunal upheld the lower authority's decision to deny benefits under the OGL and exemption notification for Red-on-Drain. Consequently, the Tribunal partially allowed the appeal, releasing Red-O-Packs without penalties and extending the exemption, while requiring a fine for Red-on-Drains in lieu of confiscation.In conclusion, the Tribunal disposed of the appeal by providing specific directives for the release of Red-O-Packs and Red-on-Drains, based on the classification and evidence presented during the proceedings.