Customs exemption for cystoscope parts applies where the equipment is listed and component-part relief is also available.
Imported parts of a cystoscope qualified for customs exemption because the medical equipment was expressly listed in the notification table and the goods were found to be parts or accessories of that item. A narrower view that only the complete cystoscope was covered was not sustainable on the text of Notification No. 65/88-Cus. In any event, Notification No. 66/88-Cus. also extended exemption to component parts of goods covered by the first notification when imported for manufacture of the specified goods, so the alternative exemption applied as well. The imported goods were therefore entitled to duty relief under the notification scheme.
Issues: Whether the imported parts of a cystoscope were entitled to exemption from customs duty under Notification No. 65/88-Cus. dated 01-03-1988, and alternatively under Notification No. 66/88-Cus. dated 01-03-1988.
Analysis: Notification No. 65/88-Cus. granted concessional duty to medical equipment, accessories and spare parts falling within the specified Chapters and listed in the annexed Table. Cystoscope was specifically included in the Table, and the imported goods were found to be parts/accessories of cystoscope. The exclusion taken by the lower authority on the footing that only the complete cystoscope was covered was not sustainable. In any event, Notification No. 66/88-Cus. extended exemption to component parts of goods covered by Notification No. 65/88-Cus. when imported for manufacture of the said goods. Once the goods were accepted as parts of cystoscope specified in Notification No. 65/88-Cus., they were independently eligible for the alternative exemption.
Conclusion: The imported goods were exempted from duty under the notification scheme and the assessee was entitled to relief.
Ratio Decidendi: Where a notification exempts specified medical equipment and its parts or accessories, parts of an item expressly listed in the notification are covered, and an alternative notification extending exemption to component parts of such specified goods also applies.
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