Baxter (India) Private Limited Vs Commissioner of Customs (NS-V) (CESTAT Mumbai)
The CESTAT Mumbai allowed the appeal challenging the Order-in-Original which had reclassified imported parts of Continuous Renal Replacement Therapy (CRRT) and Automated Peritoneal Dialysis (APD) machines from Customs Tariff Heading (CTH) 9018 to the residuary Heading 9033, confirmed differential IGST at 18% under Section 28(4) of the Customs Act, 1962, and imposed confiscation, redemption fine and penalties.
The appellant had imported various parts and accessories used in PRISMAFLEX CRRT machines and Homechoice Claria APD machines, classified them under CTH 9018, and paid IGST at 12% by availing the concessional rate under Serial No. 218 of Schedule II to Notification No. 01/2017-IT (Rate) dated 28.06.2017. The Department contended that the goods were classifiable under CTH 9033 and liable to 18% IGST.
The Tribunal identified the issues as the correct classification of the imported goods under CTH 9018 or CTH 9033 and the sustainability of confiscation, redemption fine and penalties. After examining Chapter 90, Chapter Note 2 and the General Rules for Interpretation of the Customs Tariff, it held that CTH 9018 covers medical instruments and appliances along with their parts and accessories, while CTH 9033 is only a residuary entry applicable to parts not specified elsewhere in Chapter 90. Since the imported goods were parts and accessories suitable for use with kidney dialysis apparatus, they were classifiable under CTH 9018 and not under CTH 9033.
