Cannula classification for blood vessel use supports customs exemption despite later departmental clarification.

A scalp vein infusion set was treated as a cannula used for blood vessels and brought within Sl. No. 34 of Notification No. 55/95-Cus., so the duty-free exemption applied. The material evidence, including expert opinion, supported use for cannulating peripheral veins and blood vessels, even though it was not for large vessels such as the aorta or vena cavae. A later withdrawal of departmental clarification did not alter the result because the notification did not make that certification a condition for the relevant entry. The exemption therefore remained available on the plain wording of the notification.

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Issues: Whether a scalp vein infusion set is covered by Sl. No. 34 of Notification No. 55/95-Cus. as a cannula for use in blood vessels and is therefore entitled to duty-free exemption.

Analysis: The item in question was held to be a cannula. The record contained extensive expert opinion from both sides, but the weight of the material supported the assessee's case that the product is used for cannulating peripheral veins and blood vessels, even though it is not used for aorta, vena cavae, or similar large vessels. The subsequent DGHS withdrawal of its earlier clarification was not decisive, because the notification did not make such certification a condition for the specific entry relied upon. The Revenue's reliance on a different notification and on a different factual context did not displace the plain applicability of the entry in the present notification.

Conclusion: The scalp vein infusion set falls within Sl. No. 34 of Notification No. 55/95-Cus. and qualifies for exemption; the Revenue's appeal fails.

Final Conclusion: The classification and exemption granted by the appellate authority were upheld, and the duty demand was not sustained.

Ratio Decidendi: Where the evidence shows that the imported medical item is a cannula used for blood vessels and the notification entry covers such cannulae, the exemption applies notwithstanding a later contrary departmental clarification.

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