TaxTMI 
TaxTMI 
CLASSIFICATION OF IMPORTED LASER IMAGES FOR THE LEVY OF CUSTOMS DUTY
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....LASSIFICATION OF IMPORTED LASER IMAGES FOR THE LEVY OF CUSTOMS DUTY<br>By: - DR.MARIAPPAN GOVINDARAJAN<br>Customs - Import - Export - SEZ<br>Dated:- 24-8-2026<br>Imported laser images are the digital pictures or vector graphics brought into laser cutting, engraving, or marking software from an outside source. Users import files like JPEGs, PNGs, or SVGs so the laser machine can trace, cut, or etch the visual design onto materials like wood, metal, or acrylic. The imported laser imager is a printer that uses photo thermographic (dry laser) technology to develop images on film. It interfaces with digital diagnostic machines like- • Magnetic Resonance Imaging (MRI), • Computed Tomography (CT), • Full-F....
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....ield Digital Mammography (FFDM), • Digital Radiology (DR), • Computed Radiography (CR), • Picture Archiving and Communication System (PACS), • Digital Fluoroscopy. It can also be used for other grayscale film applications. However, it is not medical equipment, in itself, as it does not possess independent diagnostic skills or capabilities. The classification of the imported laser images is decided by the Supreme Court in M/s. Carestream Health India Pvt. Ltd. Versus Commissioner of Customs. - 2026 (8) TMI 816 - Supreme Court, the appellant, in this case, imported 'Dry view 6850 Laser Images W/3D' from China. The appellant classified them under the Customs Tariff Heading (CTH) 9....
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....018 90 19 in Chapter 90 of Section XVIII of the First Schedule to the Customs Tariff Act, 1975. Section XVIII is titled 'Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof'. Chapter 90 therein is titled 'Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof'. The appellant claimed that his imported laser imagers would qualify as 'Other diagnostic instruments and apparatus' under CTH 9018 90 19'. But the Department did not accept the same. The Assistant Commissioner of Chennai rejected the classification o....
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....f the appellant by his Order-in-Original dated 24.06.2013. The Assistant Commissioner re-classified the said product under CTH 9033 00 00 as accessories not specified or included elsewhere in Chapter 90 for machines, appliances, instruments or apparatus of that chapter. The appellant, being aggrieved against the order of Assistant Commissioner, filed an appeal before the Commissioner of Customs (Appeals), Chennai. The Commissioner (Appeals) upheld the order of Assistant Commissioner and dismissed the appeal. Against this order, the appellant filed an appeal before the CESTAT which also dismissed the appeal on 21.08.2024, against which the appellant filed the present appeal before the Supreme Court. The appellant submitted the followin....
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....g before the Supreme Court- • The laser imager is not a 'part' or 'accessory' but an 'apparatus' used for diagnostic purposes. • The laser imager is used with machines classified under CTH 9018, titled 'Instruments and appliances used in medical, surgical, dental or veterinary sciences including scientigraphic apparatus, other electromedical apparatus and sight-testing instruments - Electrodiagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters)', and being of use with such machines, the laser imager has to be categorised under CTH 9018 90 19, the residuary clause for 'other such apparatus'. The Revenue contended that the imported laser imager is....
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.... also usable with machines other than those falling under CTH 9018. Therefore, it would fall within the ambit of residuary CTH 9033 00 00 in Chapter 90, which provides - 'Parts and accessories (not specified or included elsewhere in this chapter) for machines, appliances, instruments or apparatus of Chapter 90'. The Supreme Court considered the submissions of both the parties. The Supreme Court did not agree with the contention of the appellant that the laser imager is a 'diagnostic apparatus. The Supreme Court observed that the laser imager has no diagnostic skill or capability of its own and must necessarily receive inputs from diagnostic equipment to carry out its function of printing films. In effect, it is an 'accessory' to the diag....
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....nostic equipment from which it receives inputs, as it then transfers the same onto films. CTH 9018 90 19 admittedly applies only to 'other diagnostic instruments and apparatus', i.e., either 'diagnostic instruments' or 'diagnostic apparatus'. It has no diagnostic capabilities of its own, it cannot per se be classified under this heading. The Supreme Court analysed the Note No.2 of Chapter 90 which reads as below- 2. Subject to Note 1 above, parts and accessories for machines, apparatus, instruments or articles of this Chapter are to be classified according to the following rules: • parts and accessories which are goods included in any of the Headings of this Chapter or of Chapter 84, 85 or 91 (other than Heading 8487, 854....
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....8 or 9033) are in all cases to be classified in their respective Headings; • other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same Heading (including a machine, instrument or apparatus of Heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind; • all other parts and accessories are to be classified in Heading 9033. The Supreme Court found that Rule 2(a) is not applicable to the laser images as they are not goods included in any of the headings of Chapter 90 or of the other chapters. The Supreme Court considered the ....
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....question as to whether they come within the ambit of Rule 2(b) or whether Rule 2(c) would have application. This would depend upon the interpretation of Rule 2(b). The laser imagers are obviously not 'parts' of the diagnostic machines used for medical imaging as they are independent of such machines but they are 'accessories' thereto, as they carry out the supplementary function of printing the data received therefrom on films. As the laser imagers do not directly fall under CTH 9018 90 19 or any other heading in CTH 9018, the only avenue for CTH 9018 to be applied to them, as parts or accessories, would be by way of the 'Notes' in Chapter 90. The laser imagers are compatible with Linear Ultrasound Scanners, falling under CTH 9018 12 10; Ma....
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....gnetic Resonance Imaging apparatus, falling under CTH 9018 13 00; Echo Cardiograph, falling under CTH 9018 19 20; as well as ultra-violet or infra-red ray apparatus, falling under CTH 9018 20 00. Rule 2(b) states to the effect that parts and accessories which are suitable for use 'solely or principally' with a particular kind of machine or with a number of machines under the same tariff heading are to be classified with such machine or machines. The appellant contended that the laser imager is compatible with several machine falling under the head CTH 9018. Therefore, it should be clubbed with the machines falling under CTH 9019. The Revenue contended that as it is not only one tariff heading that is applicable to the possible uses of th....
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....is accessory and such accessory can be used with machines falling under not just one tariff heading but with machines that fall under another tariff heading, Rule 2(b) cannot apply and Rule 2(c) would only attract. The Supreme Court agreed with the contentions of the Revenue. Rule 2(b) clearly distinguishes and separates such accessories from those suitable for use with a number of machines falling under different tariff headings. The Supreme Court noted that the tariff duty for Magnetic Resonance Imaging apparatus, under CTH 9018 13 00, and also for Linear Ultrasound Scanners, falling under CTH 9018 12 10, was 7.5% at that time while the tariff duty for Computed Tomography apparatus, falling under CTH 9022 12 00 was 10% per unit an....
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....d the tariff duty for X-ray generators and apparatus (non-portable), falling under CTH 9022 14 10 was 15% per unit. In view of the above, the Supreme Court considered the view that that the interpretation placed upon Rule 2(b) by the Customs, Excise and Service Tax Appellate Tribunal, South Zone Bench, Chennai, is valid and correct. The accessories suitable for use with a number of machines, instruments or apparatus falling under the same tariff heading would have to be classified with such machines, instruments or apparatus, but when such accessories are suitable for use not only with machines, instruments or apparatus under a particular tariff heading but also with machines, instruments or apparatus falling under another tariff heading....
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...., they would necessarily have to be brought under residuary CTH 9033 00 00, being accessories suitable for use with machines, appliances, instruments or apparatus falling under Chapter 90, which have not been specified or included under a particular tariff heading. The Supreme Court dismissed the appeal filed by the appellant. =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....