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688 EXCISE LAW TIMES [ Vol. 372

ther four digits assigned to the items. Under the 18th bundle in Chapter 90 cov-
ered by sub-heading 9018 dealing with instruments and appliances used in med-
ical, surgical and the like, the writ petitioner’s product is classified as renal dialy-
sis equipment (artificial kidneys, kidney machines and dialisers) with the specific
item number being 9018 90 31. There is a broad heading within the group intit-
uled “Renal Dialysis Equipment, blood transfusion apparatus and Haemofiltra-
tion instruments.” Under such heading, there are three classes of items all direct-
ly connected to renal dialysis.
4. Ordinarily, the rule that applies in such a case is that the description
of the goods in the second column is tallied with a particular product and if such
description matches with the product, its use and efficacy, the exercise is com-
plete; and the duty that is payable is as per the rate indicated in the fourth col-
umn corresponding to the item. However, there are certain exceptions as specifi-
cally made out in the chapters or as permitted by the statute.
5. It is possible that the goods not answering to a particular description
are claimed to be fitted under such description in an attempt to pay lower duty.
It is for the Customs authorities to check the nature of the product and ensure
that the applicable rate of duty has been paid thereon. In more generic cases of
abuse of the lower rates, the Customs authorities may issue instructions to the
field officers. Under Section 151A of the Customs Act, 1962, instructions may be
issued by the Central Board of Excise and Customs with respect to the levy of
duty on a product in so far as such instructions relate to any prohibition, instruc-
tion or procedure of import or export of goods or if it is deemed necessary to is-
sue such instruction for the purpose of uniformity in the classification of goods
or the levy of duty. The instructions that are issued under Section 151A of the Act
of 1962 cannot alter the structure of the schedule under the Act of 1975 nor can
such instructions be issued for the purpose of altering the position of any goods
from one Chapter to another within the First Schedule to the Act of 1975.
6. Indeed, it is always open to the Central Government to change the
quantum of duty or to change the classification of goods and, whether or not the
Act is amended, by delegated authority the Central Government may exercise
the powers as long as the instrument by which the alteration is brought about is
placed before the Parliament. Upon the alteration being placed before the Par-
liament and being available for inspection and spending the appropriate time,
the instrument and the alteration assume statutory force.
7. Instructions that may be issued by the Central Board of Excise and
Customs cannot be a substitute for the procedure of amendment or alteration by
rules that is delegated to the Central Government. Instructions can pertain to an
interpretation to bring about uniformity, but such instructions cannot be used to
uproot a class of goods or any product from one chapter and plant it in another.
That would be the authority of the Central Government in accordance with the
provisions of the Act of 1975.
8. Paragraph 5 of the impugned Circular of May 9, 2013 purported to
club the dialyser or the equipment pertaining to dialysers that purify the blood
along with generic equipment for purification of water or liquids or the like. Or-
dinarily, it appears that the writ petitioner’s product would have more nexus
with Chapter 90 and the goods covered by the heading ‘Renal Dialysis Equip-
ment’ rather than filtering or purifying machinery and apparatus for liquids. It is
true that the particular equipment which is the subject-matter of the present case
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