Exemption for blood-bag inputs denied where plastic sheets were treated as raw material, not parts or accessories.

Notification No. 339/86 did not extend exemption to rectangular and square plastic sheets used to make blood-bags, because the notification covered medical and surgical instruments and their specified parts and accessories, including plastic bags for preserving blood and its components. The sheets were only inputs or raw materials requiring further processing and fitment before becoming blood-bags, and could not be treated as parts or accessories of blood-bags in their existing form. As a result, the exemption claim failed.

---

---

Issues: Whether rectangular and square plastic sheets used in the manufacture of blood-bags were entitled to exemption under Notification No. 339/86 as parts or accessories of blood-bags.

Analysis: The notification extended benefit to medical and surgical instruments and apparatus and their parts and accessories of the descriptions specified in the schedule. The relevant entry covered plastic bags for preserving blood and its components. The plastic sheets manufactured by the appellant were only inputs used for making blood-bags and, by themselves, could not be treated as parts or accessories of blood-bags. They were in the nature of raw materials requiring further processing and fitment of other items before becoming blood-bags.

Conclusion: The benefit of Notification No. 339/86 was not available to the appellant, and the claim for exemption failed.

---