2014(10)LCX0066

IN THE CESTAT, WEST ZONAL BENCH, MUMBAI [COURT NO. II]

S/Shri P.R. Chandrasekharan, Member (T) and Ramesh Nair, Member (J)

FUJIFILM INDIA PVT. LTD.

Versus

Commr. Of Cus. (Import), Nhava Sheva

Final Order No. A/1653/2014-WZB/C-I (CSTB), dated 29-10-2014 in Appeal No. C/192/2012-Mum

Cases Quoted -

Jindal Photo Ltd. v. Commissioner - 2013(02)LCX0184 Eq 2014 (300) ELT 0568 (Tribunal) - Doubted [Paras 2, 4.1]

Advocated By -

Ms. Rina Khair, Advocate, for the Appellant. Shri Senthil Nathan, Dy. Comm. (DR), for the Respondent.

[Order per : P.R. Chandrasekharan, Member (T)]. -

The appeal is directed against Order-in-Appeal No. 632(Gr.VB)/2011 (JNCH)/IMP 549, dated 24-11-2011 passed by Commissioner of Customs (Appeals), Mumbai-II. Vide the impugned order, the learned lower appellate authority has held that Imaging Plate , IP Cassettes and FCR Capsula imported by the appellant, M/s. Eujifilm In-dia Pvt. Ltd. are part of X-ray Machine and therefore, the appellant being a merchant importer is not eligible for the benefit of concessional rate of duty of 5% ad valorem under Serial No. 357B of Notification No. 21/2002-Cus., dated 1-3-2002 and accordingly confirmed the duty demand and held the impugned goods to be chargeable to basic customs duty @ 7.5% ad valorem classifying them under CTH 90229090. Aggrieved of the same, the appellant is before us.


2. The learned Counsel for the appellant submits that an identical issue had come up before this Tribunal in the case of Jindal Photo Ltd. and vide order No. A/1237/13/CSTB/C-I, dated 20-2-2013 [2013(02)LCX0184 Eq 2014 (300) ELT 0568 (T)], this Tribunal had held that Imaging Plate and IP Cassette are classifiable under CTH 90189099 and eligible for the benefit of Notification No. 21/2002-Cus., dated 1-3-2002. In the said order it was further held that FCR Capsula X merits classification under CTH 90229090/90221490 and is not eligible for the benefit of aforesaid exemption. It is, therefore, prayed that benefit of Notification No. 21/2002-Cus., dated 1-3-2002 be extended to Imaging Plates and IP cassette and duty demand to this extent be set aside.


3. The learned Deputy Commissioner (AR) appearing for the Revenue, on the other hand, submits that the Imaging Plates and IP Cassette are integral part of the X-ray machine as these are required for getting a readable image. The goods being essential part of the X-ray, machine, the same cannot be considered as accessories and therefore, the benefit of Notification No. 21/2002-Cus., dated 1-3-2002 cannot be extended to these goods. Accordingly, he pleads for upholding the impugned order.


4. We have carefully considered the submissions made by both the sides.

4.1 From the technical literature available, it is seen that the Imaging Plates (IP) contains a photostimulable storage phosphor layer, which store the radiation dose as a latent image within the phosphor layer as elevated electron energies. When the IP is then transported through the scanner, the scanning laser beam causes the electrons to relax to lower energy levels, emitting light that is detected by a photo-multiplier tube, which is clocked at a specific resolution or pixel capture frequency, this signal then being converted to an electronic signal and significantly amplified. The electronic signal is then quantized via an ADC to discrete (digital) values for each pixel and placed into the image processor pixel map. Imaging Plates are used in computed radiography. The computed radiography generally involves the use of a cassette that houses the imaging plate similar to traditional film-screen systems, whereas direct radiography captures the image directly onto a flat panel detector without the use of a cassette. In other words imaging plates is an alternative or a substitute for an X-ray film which is used commonly. As regards the classification of these goods, though the Tribunal classifies this item under heading 90189099, no reasoning has been given in the impugned order except stating that these are rightly classifiable under the said heading. This conclusion of the Tribunal prima facie does not appear to be correct for the reason that all photographic plates and film in the flat, sensitized, unexposed, of any material fall under CTH 370110. The HSN explanatory Notes pertaining to the above also says that X-ray plates and film, including those for radiography fall under heading CTH 3701. The benefit of exemption under Notification No. 21/2002-Cus, dated 1-3-2002 would still be available as serial No. 357B covers accessories of goods required for medical, surgical, dental or veterinary use, falling under Chapter 90 or any other chapter. An accessory by its very nature is something which aids or improves the efficiency of the main machinery. A photographic plates or film cannot be said to be a part of a camera or an X-ray machine. A camera or an X-ray machine is complete even without a film. Therefore, a film or an imaging plate would come under the category of accessories to a machine. Since the coverage under 357B includes all products falling under Chapter 90 or any other chapter, goods falling under CTH 3701 would also be eligible for the benefit of concessional rate of 5% ad valorem under the aforesaid notification. Thus, IP and IP cassette, which is only a protective cover for the imaging plates would be eligible for the exemption. As regards the FCR Capsula it has already held by this Tribunal that the same falls under CTH 90229090/90221490 and will not be eligible for the exemption under the aforesaid notification.


5. In sum, we hold that IP Cassette and Imaging Plates would be eligible for the benefit of Notification No. 21/2002-Cus., dated 1-3-2002 under Serial No. 357B(ii); FCR Capsula will not be eligible for the aforesaid exemption. Thus the appeal is partly allowed in the above terms.
(Pronounced in Court on 29-10-2014)

Equivalent 2015 (316) ELT 0270 (Tri. - Mumbai)