1997 (6) TMI 140 - AT - Customs

Imported goods not for severely handicapped denied duty exemption

POLARIS INC. Versus COLLECTOR OF CUSTOMS, NEW DELHI

The tribunal upheld the decision of the lower authorities, ruling that the appellant failed to demonstrate that the imported goods were intended for use ... Orthopaedic/Surgical implants and instruments Issues:1. Interpretation of exemption notification for imported goods.2. Requirement of goods to be used on severely crippled and handicapped persons.3. Burden of proof on the appellant to establish eligibility for exemption.Analysis:1. The case involved the interpretation of an exemption notification for imported goods, specifically orthopaedic implants and instruments. The appellant imported nails, screws, screwdriver, plastics, etc., claiming exemption under Notification No. 208/81-Cus. The dispute arose when the authorities held that the goods did not meet the criteria specified in the notification for exemption.2. The key issue was whether the imported goods were required to be used exclusively on severely crippled and handicapped persons to qualify for the exemption. The appellant argued that the notification did not specify exclusivity of use for such persons and contended that even if the goods were used on ordinary persons, the exemption should apply. However, the authorities maintained that the goods must be established to be used on severely crippled and handicapped persons to qualify for the exemption.3. The burden of proof was on the appellant to establish that the imported goods met the criteria set forth in the exemption notification. The appellant submitted certificates from medical authorities regarding the importability and application of the goods in orthopaedic surgery. However, the certificates did not specifically mention the use of the goods on severely crippled and handicapped persons, which was a requirement for the exemption.4. The appellate tribunal examined the certificates provided by the appellant and noted that they did not conclusively prove that the goods were intended for use on severely crippled and handicapped persons. The tribunal emphasized that the exemption notification required a strict interpretation, as established in previous legal precedents, and that the appellant must squarely meet the criteria outlined in the notification to qualify for the exemption.5. Ultimately, the tribunal upheld the decision of the lower authorities, ruling that the appellant had not satisfactorily demonstrated that the imported goods were intended for use on severely crippled and handicapped persons as required by the exemption notification. As a result, the appeal was dismissed, and the appellant was not granted the exemption from duty under the notification.