G. Sankaran, President

1. M/s. Kidwai Memorial Institute of Oncology, Bangalore, imported a consignment of Calcium Pellets, a radioactive material used in the treatment of cancer. The Customs authorities at the Air Cargo Complex, Bangalore, released the goods free of duty in terms of Customs Notification No. 163/76 read with Notification No. 279/83 and a bond obliging the importers to produce a duty-exemption certificate from the Director General, Health Services, New Delhi. On the Audit objecting to the duty free release on the ground that Caesium Pellets were consumable and were not covered by the notifications, a demand notice was issued for a sum of Rs. 62,472.46. In due course, the Assistant Collector of Customs, by order dated 15-4-1989, confirmed the demand on the ground that Caesium Pellets being inorganic chemicals falling under Heading No. 28.44 of the Customs Tariff Schedule and not fabricated equipment, were consumables, not eligible for exemption in terms of the above notification. In appeal, the Collector (Appeals) took the view that the goods should be more appropriately regarded as a part of the machine employed for treatment since they constituted its most esse