Freeze-dried agglutinating sera remained exempt as serum when lyophilization did not alter their essential character.

Freeze-dried agglutinating sera imported for diagnostic use were treated as eligible for customs exemption because lyophilization did not change their essential character as serum. The Tribunal accepted that agglutinating sera may exist in liquid or freeze-dried form and noted that freeze-drying is commonly used to improve shelf life, storage, and transport. On that basis, the goods remained identifiable as sera and the exemption under Notification No. 13/95-Cus. was available. The denial of exemption was therefore set aside and the benefit restored to the importer.

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Issues: Whether freeze-dried agglutinating sera imported for diagnostic use were entitled to exemption from customs duty under Notification No. 13/95-Cus. as the successor to Notification No. 208/81.

Analysis: The imported goods were described as agglutinating sera for detection of human chorionic gonadotrophin in urine. The Tribunal followed its earlier decision in the importer's own case and accepted that agglutinating sera may exist in liquid as well as freeze-dried form. It held that freeze-drying does not alter the essential character of the product as serum and that such products are commonly lyophilized for longer shelf life, storage, and transport. On that basis, the objection that the goods were not identifiable as sera merely because they were in freeze-dried form was rejected.

Conclusion: The imported goods were held eligible for the exemption under Notification No. 13/95-Cus., and the denial of benefit was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the exemption benefit was restored to the imported agglutinating sera.

Ratio Decidendi: Where a notification grants exemption to agglutinating sera, the same benefit cannot be denied merely because the sera are imported in freeze-dried or lyophilized form, if that form does not change their essential nature.

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