Judgment:
1. Both these appeals are directed against the Order-in-Appeal dated 10-11-1987 of Collector of Customs (Appeals). The appellants seek classification of Image Intensified and Television System consisting of Hi-Performance Image Tube, housing, solid state power supply, Collimating lens, 625 line TV Camera and TV Monitor, etc. under Customs Tariff Heading 9022.90. Revenue is in appeal against Collector (Appeals) Order holding the main imaging equipment as classifiable under 90.22 and ordering the assessment of other parts and accessories under their respective tariff headings. Revenue seeks to classify the entire system as video-reproducing apparatus classifiable under Heading 85.21.
2. Arguing for the importer appellants, the ld. Advocate submits that the equipment imported is essentially an apparatus based on use of X-Rays and accompanied by items like TV Cameras and Monitors, which are specially designed to work as parts of the equipment for image intensification. He draws our attention to invoice placed at Page 21 of the Paper Book which indicates that the items alongwith accessories have been imported as a single item. The Invoice describes the equipment as Imagine System Dual Mode consisting of Hi-performance image tube, housing, solid state power supply, collimating lens, 625 line TV Camera and 17" TV Monitor. He also draws our attention to HSN Note at Page 1500 which describes radioscopic (Floroscopic) apparatus as falling under this heading. Note 3(A) of this Page itself provides that apparatus and specialised camera, if presented at the same time, are to be classified together in this heading even if separately packed for convenience of transport. In terms of Chapter Note 2(b) of Chapter 90 these parts being specially designed for these equipments have to be assessed only under Chapter heading 90.22. Chapter Heading 85.21 is not even remotely applicable to the goods as the goods are not by themselves video-recording or reproducing equipment but are specially designed parts to function with the main equipment for intensification of image.
3. Arguing for the Revenue, the ld. DR submits that even though the system consists of X-Rays equipment it is basically a system of reproducing and recording image and therefore, Chapter Heading 85.21 is more appropriate. He submits that collector erred in allowing partial relief on the grounds not urged before him by the importer appellant as the issue before the Collector (Appeals) was whether the equipment as imported would be classifiable under 90.22 or 85.21. He also erred in ordering separate classification for TV Cameras and Monitors while upholding classification under 90.22 in respect of the main equipment.
The equipment is essentially one of image reproducing and recording, and therefore, entire equipment should have found its classification under 85.21 as recording and reproducing equipment.
4. We have heard both sides. The catalogue to which our attention was drawn indicates that the supplier company has developed a broad range of technologies and products for medical imaging, each such system is furnished with a solid state power supply, BRH certified shielded housing and a complete line of customer selectable accessories which are carefully assembled, checked and painted to match the X-ray system.
The catalogue also indicates that for many years these imaging components have been manufactured for major international X-ray companies and that the supplier would continue to incorporate, as new technologies evolve, those technological advances in their products to offer the customers the optimum in imaging systems at competitive prices.
5. Revenue themselves in their Appeal Memo have admitted that "the system incorporated is essentially meant for transmission of image output of X-ray machines".
6. After going through the catalogue and hearing both sides, we are satisfied, considering the functions of the equipment in conjunction with the parts as imported, that equipment can fall under the product heading of apparatus based on the use of X-rays. Considering the characteristics of the component parts like 625 line TV Camera and TV Monitors, it is obvious that these parts are parts specially designed to work with the main equipment only, and therefore, are not as such as would find classification under different headings covering cameras and TV Monitors. In view of this, the Chapter Note 2(a) is clearly ruled out in regard to these parts and, therefore, the Chapter Note 2(b) will come into play. In consequence, these parts being suitable for use solely or principally with a particular kind of machine have to be classified with that machine. In view of this, we hold that findings arrived at by Collector (Appeals) in ordering classification of these parts under their respective headings is not correct. We, therefore, set aside that part of his order. In fact, this is the contention of Revenue also though for different reasons as indicated at Page 4 of their appeal memo where they have opposed Collector (Appeal's) order of "breaking up of a single system into parts for the purpose of assessment". Since the apparatus incorporates advance technology which uses imaging on a screen with X-rays, the product would be more appropriately classifiable under 9022.90 as "other, including parts and accessories".
7. In the result, we allow the appeal of importer appellant and reject the Revenue Appeal.