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CX - Notfn 12/2012 - Fitting of medical equipment is not mentioned in exemption list - no reason to deny exemption: CESTAT

By TIOL News Service

NEW DELHI, NOV 15, 2017: THE appellant had supplied 690 light commercial vehicles as ambulances to the Government of Maharashtra and claimed exemption under Sr. No. 273 of Chapter 87 of the General Exemption list of Central Excise as per the exemption Notification No. 12/2012-CX where it is stated that an ambulance duly fitted with all fitments, furniture and accessories necessary for an ambulance, from the factory manufacturing such motor vehicle will be entitled for the exemption.

 

 

273

87

The following goods namely:-

(i) Motor vehicles falling under headings 8702 and 8703 cleared as ambulances duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles;

(ii) …;

(iii) ...

12%

-

It is the case of the department that the vehicle was not fitted with the medical equipments and, therefore, the appellant is not entitled for the exemption under the notification.

CE duty was demanded and penalties were levied under Rule 26 of the CER.

Aggrieved, the appellants are before the Tribunal.

The appellant submitted that the purported vehicles-ambulances were fitted with the following fitments, furniture and accessories:

(a) Wailing horn (b) Public Address System (c) Medical Cabinets (d) Doctor Seat (e) Squad bench to accommodate patient in seating/ laying condition (f) Oxygen Cylinder trolley with external separate compartment (g) Thermo-electric cooler cum warmer (h) Fire extinguishers (i) Fans (j) Bottle holder (k) Electric Switches (l) External battery charging port (m) Foot operated wash basin (n) Water tank for the wash basin with provision for easy refilling (o) Hand rub dispenser (p) Concealed Portable Dust Bins with spring loaded lids (q) Inverter for reserve power (r) Patient compartment with ABS thermoformed interior panels (s) Internal lights (t) LED based flashing lights with top blue lens (u) grab handle at roof (v) full length foot step (w) sturdy reinforcement for medical equipments (x) curtain (y) Two way intercom phone.

It is further submitted that fitting of the medical equipment is specialised matter which can be done by a specialised agency and appellant is no expert in fitting the medical equipment.

The AR justified the impugned order by stating that no exemption can be granted.

The Bench observed -

"6. …, it appears that the vehicle cannot be used other than the ambulances after the fitment. Moreover, ambulances were supplied to the Government of Maharashtra. So, there is no chance of misuse of the vehicles. Fitting the medical equipment is the subject matter of expertise. Further, medical equipment is not mentioned in the exemption list. Fitment of accessories have already been done as per the requirement of the exemption list. When it is so, then we find no reason to sustain the impugned order. The same is hereby set aside."

Both the appeals were allowed.

(See 2017-TIOL-4013-CESTAT-DEL)


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