Functional classification of imported goods determines OGL eligibility when the item matches the named product in use and character.

Folay Baloon Catheters were treated as Suction Catheters on the basis of medical certificates and prior bench reasoning, so they fell within S. No. 31 of Appendix 6(33) List II of the Import Policy, 1985-88 and were eligible for clearance under OGL. On that functional classification, the customs refusal to grant OGL treatment could not stand, and the import was found permissible under the relevant policy entry. The discussion applies a functional identity test: where an imported item is substantively the same as a named product covered by the policy, classification must follow its use and character for import entitlement.

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Issues: Whether Folay Baloon Catheters were covered by S. No. 31 of Appendix 6(33) List II of the Import Policy, 1985-88 as Suction Catheters and consequently eligible for clearance under OGL.

Analysis: A prior three-member Bench had already held, on the basis of medical certificates, that Folay Baloon Catheters are Suction Catheters and are used for urine suction. Once the goods are treated as Suction Catheters, they fall within S. No. 31 of Appendix 6(33) List II of the Import Policy for the relevant period. The same classification also supported the benefit of the earlier exemption treatment referred to by the departmental representative.

Conclusion: The imported goods were covered by the relevant OGL entry and the impugned order denying such treatment could not stand. The appeal succeeded.

Final Conclusion: The import was held to be permissible under the relevant policy entry, and the customs order rejecting clearance was set aside.

Ratio Decidendi: Where an imported item is substantively the same as a named product covered by the import policy, it must be classified according to its functional identity for the purpose of OGL eligibility.

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