Trade and common understanding govern classification of intravenous cannulae for exemption where expert evidence remains unrebutted.

Imported infusion sets used for intravenous administration of fluids and parenteral drugs were treated as intravenous cannulae for exemption purposes under Notification No. 208/81. The classification turned on common and trade understanding, supported by uncontroverted technical and medical evidence, rather than a narrow literal reading detached from the product's actual use. The term "long-term" was understood as "prolonged," and the absence of any rebuttal by the Department meant the earlier authorities relied on were followed. On that basis, the goods were regarded as eligible for the notified exemption.

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Issues: Whether the imported intravenous cannulae were covered by the exemption under Notification No. 208/81 dated 22-9-1981.

Analysis: The imported goods were found, on the basis of unrebuffed technical and medical evidence, to be infusion sets used for intravenous administration of fluids and parenteral drugs over a long period. The expression "long-term" was read as meaning "prolonged", and the understanding of the product by persons conversant with the trade and medical use was treated as the proper guide. In the absence of any rebuttal from the Department, the earlier decisions relied upon were followed.

Conclusion: The imported goods were held to be intravenous cannulae eligible for exemption under Notification No. 208/81 dated 22-9-1981, in favour of the assessee.

Ratio Decidendi: Classification and exemption of a product may be determined by its common and trade understanding, supported by uncontroverted expert evidence, and not by a narrow literal reading divorced from its use and identity in the relevant field.

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