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2026 (4) TMI 710
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....extended to the respondent and the Order-in-Original confirming demand of duty amounting to Rs.1,74,639/- was set aside. The facts, in brief, are that the respondent imported goods described as "wheel chair for use by physically disabled/handicapped persons (for toileting) with spare parts" and classified the same under CTH 87139090, availing exemption under Notification No. 12/2012-Cus. 1.2 Subsequently, based on audit objection, proceedings were initiated on the ground that the goods were in the nature of commode chairs with wheels and not wheelchairs, and therefore classifiable under CTH 9402, making them ineligible for exemption. The adjudicating authority confirmed the demand and denied the exemption. On appeal, the Commissioner (Ap....
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.... and therefore the order of the Commissioner (Appeals) is liable to be set aside. 5.1 Per Contra, none appeared on behalf of the respondent on the final date of hearing despite notice. However, since the Order-in-Appeal is in favour of the respondent, the findings and reasoning contained therein are taken as representing the submissions of the respondent. 5.2 The respondent's case, as reflected from the records, is that the impugned goods are essentially wheelchairs meant for mobility of physically disabled persons and that the toileting facility is only an additional feature provided for convenience. It is contended that classification cannot be altered merely because an additional facility is provided and that the essential characte....
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....posite or multifunctional goods, according to their essential character. The HSN Explanatory Notes to Heading 8713 indicate that the heading covers carriages for disabled persons, including wheelchairs, designed for mobility of such persons, and the presence of additional features does not alter classification so long as the essential function remains that of transport or mobility. In contrast, heading 9402 covers medical, surgical or dental furniture such as examination tables and specialized chairs having distinct medical functions. Thus, applying Rule 3(b), the classification is to be determined based on the essential character of the impugned goods. 8.3 Chapter 87 falls under Section XVII of the Customs Tariff, which deals with vehic....
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....r the intrinsic characteristics and functional attributes of the goods. Even the adjudicating authority has acknowledged that the goods resemble a wheelchair, yet has concluded that the primary function is toileting, which is not borne out from the overall functional attributes. 8.7 Heading 9402 covers specialized medical furniture having features such as reclining, rotating or elevating mechanisms. The impugned goods do not possess such characteristics and are not intended to perform any medical or surgical function. They are primarily designed for mobility and therefore cannot be classified under Heading 9402. Nor do the impugned goods perform any therapeutic or medical procedure so as to fall within the scope of medical furniture. ....
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....s exemption to wheelchairs for physically disabled persons. 9.2 The scope of exemption under Notification No. 12/2012-Cus. requires closer examination. The relevant entry covers "wheelchairs and other carriages for disabled persons" and does not prescribe any restriction regarding design, configuration or additional features of the product. The language employed in the notification is broad and inclusive, intended to extend the benefit to all forms of mobility aids designed for disabled persons. In the absence of any restrictive condition excluding products with additional functionalities, it is not permissible to deny the benefit on the ground that the impugned goods are equipped with a toileting facility. Once the goods are found to be....