Commissioner of Customs Vs Karma Health Care Ltd. (CESTAT Chennai)
In this case before the Customs Excise and Service Tax Appellate Tribunal Chennai, the Revenue challenged an order granting customs duty exemption on imported goods described as wheelchairs with toileting facility. The respondent had classified the goods under Customs Tariff Heading (CTH) 87139090 and claimed exemption under Notification No. 12/2012-Cus. The department contended that the goods were essentially commode chairs with wheels and should be classified under CTH 9402, thereby denying exemption.
The adjudicating authority had earlier confirmed a duty demand of ₹1,74,639 by rejecting the exemption claim. However, the Commissioner (Appeals) set aside the demand, holding that the goods retained the essential character of wheelchairs used for mobility by physically disabled persons, and that the toileting feature was only an additional facility. Aggrieved by this decision, the Revenue filed the present appeal.
The Tribunal examined the classification issue under the General Rules for Interpretation of the Customs Tariff, particularly Rules 1 and 3(b), which require classification based on the terms of headings and the essential character of composite goods. It noted that Heading 8713 covers wheelchairs and carriages for disabled persons designed for mobility, while Heading 9402 applies to medical or surgical furniture. The Tribunal observed that the impugned goods were designed as mobility aids for disabled persons, with wheels and features facilitating movement, and that the toileting facility was incidental.
