Customs Tariff Act, 1975 – Classification of imported laser imagers for levy of duty – Whether the imported laser imagers are classifiable under Customs Tariff Heading (CTH) 9018
90 19, as claimed by the appellant-importer, or whether they would fall under residuary CTH 9033 00 00 in Chapter
90 – Whether the laser imagers, which are compatible with machines falling under separate tariff headings, i.e., 9018 and 9022, would still qualify u/r.2(b) or would necessarily have to be included under the residuary CTH 9033, as per r.2(c) – According to the appellant, the laser imager is not a ‘part’ or ‘accessory’ but an ‘apparatus’ used for diagnostic purposes – It contends that the laser imager is used with machines classified under CTH 9018, and being of use with such machines, it has to be categorised under CTH 9018 90 19, the residuary clause for ‘other such apparatus’ – However, as per the Revenue, the imported laser imager is also usable with machines other than those falling under CTH 9018 and would, therefore, fall within the ambit of residuary CTH 9033
00 00 in Chapter 90- ‘Parts and accessories (not specified or included elsewhere in this chapter) for machines, appliances, instruments or apparatus of Chapter 90’:
Held: Appellant’s contention that the laser imager is a ‘diagnostic apparatus’ in its own right not agreed with – Admittedly, 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 diagnostic 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’ – As the laser imager has no diagnostic capabilities of its own, it cannot per se be classified under this heading – The laser imager does not aid in or augment the performance of the medical equipment that it receives inputs from – It only plays the ancillary function of transferring such inputs onto film for preservation or further use by medical professionals – The medical equipment that carries out the diagnostic function is complete in itself and the laser imager does not contribute in any manner to that exercise – In effect, it only serves as an accessory to such medical equipment by printing the transmitted diagnostic data 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 – Note 1 in Chapter 90 details the goods to which the said chapter does not apply – Note 2 is of relevance – When it speaks of accessories suitable for use ‘solely or principally’ with a particular kind of machine or a number of machines of the same tariff heading, r.2(b) clearly distinguishes and separates such accessories from those suitable for use with a number of machines falling under different tariff headings – 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 and the tariff duty for X-ray generators and apparatus (non-portable), falling under CTH 9022 14 10 was 15% per unit – In such a scenario, it defies logic and rationale to invoke r.2(b) for application to an accessory that may be clubbed with machines falling under CTH 9018 and also CTH 9022, when different rates of tariff duties would apply to such machines – The interpretation placed upon r.2(b) by the Customs, Excise and Service Tax Appellate Tribunal is valid and correct – In consequence, 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, 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 – Appeal bereft of merit, dismissed – Customs Act, 1962. [Paras 8, 9, 11, 17-19]
Notification – Reliance upon, when not justified – Appellant relied upon Notification No. 12/2012 dtd.17.03.2012 issued by the Department of Revenue, Ministry of Finance, Government of India – Without first establishing foundational compliance with the conditions to be satisfied, the appellant cannot straightaway seek to rely upon the notification: Held: Said notification does not come to the aid of the appellant – At Sl. No.473 of the table in the said notification, goods required for medical, surgical, dental or veterinary use, falling under CTH 9018, CTH 9019, CTH 9020, CTH 9021 or CTH 9022, were subjected to a standard rate of customs duty @ 5% – Notably, specific tariff headings were mentioned at Sl. No.473 of the notification and no mention was made of CTH 9033, relating to other parts and accessories of machines coming under Chapter 90 – Further, the annexure to the notification detailed the conditions required to be satisfied to avail the benefit thereof – Significantly, the appellant never relied upon this notification earlier and raised it for the first time before this Court – Without first establishing foundational compliance with the conditions to be satisfied, the appellant cannot straightaway seek to rely upon this notification. [Para 10]
Words and Phrases – ‘accessory’ – Meaning, discussed. [Para 13]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Divya Pandey. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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