2002 (6) TMI 480 - AT - Customs

Tribunal upholds denial of benefit under Customs Notification, remands for reconsideration under alternative provision.

Dr. HT. GANGAL, AROGYA MEDICAL TRUST Versus CC., BANGALORE

The Tribunal confirmed the denial of the benefit under Customs Notification No. 64/88 due to the appellant's failure to produce the required NMI-CDE ... Camera - Endoscopic Camera - Customs exemption Issues Involved:1. Denial of benefit of Customs Notification No. 64/88.2. Requirement and failure to produce NMI-CDE Certificate.3. Examination of entitlement under Notification No. 138/88.4. Alleged procedural unfairness and lack of natural justice.Issue-wise Detailed Analysis:1. Denial of Benefit of Customs Notification No. 64/88:The appellant imported medical equipment valued at Rs. 2,14,962/- and claimed the benefit of Customs Notification No. 64/88, which required the production of a NMI-CDE Certificate. The Assistant Commissioner of Customs denied this benefit due to the appellant's failure to produce the necessary certificate, resulting in a duty demand of Rs. 86,000/-. The Commissioner (Appeals) confirmed this denial, and the Assistant Commissioner upheld the decision after the appellant failed to produce the certificate even after multiple notices and opportunities.2. Requirement and Failure to Produce NMI-CDE Certificate:The appellant was required to produce a NMI-CDE Certificate from the Directorate General of Health Services (DGHS), Government of India, to avail the exemption under Notification No. 64/88. Despite multiple opportunities and notices, the appellant did not furnish the certificate. The DGHS explicitly rejected the request for the certificate for the endoscopic camera, reaffirming this stance in subsequent communications. Consequently, the Assistant Commissioner upheld the duty demand due to non-compliance with the certificate requirement.3. Examination of Entitlement under Notification No. 138/88:The appellant argued that the imported endoscopic camera should be considered under entry serial No. 47 of Notification No. 138/88, which was operative at the time of the request for customs duty exemption. The appellant provided extensive documentation and arguments supporting this claim, including certificates from various medical authorities and manufacturers. The Tribunal noted that these arguments and materials had not been adequately considered by the lower authorities. Therefore, the Tribunal set aside the order and remanded the matter back to the original authority to examine the appellant's entitlement under the alternative notification.4. Alleged Procedural Unfairness and Lack of Natural Justice:The appellant contended that the Commissioner (Appeals) did not provide a reasonable opportunity for a hearing and did not consider the appellant's detailed submissions, violating the principles of natural justice. The appellant also claimed that the Commissioner's order was not a speaking order and lacked judicious consideration of the points raised. The Tribunal acknowledged these procedural concerns and emphasized the need for a thorough examination of the appellant's arguments and documentation under the alternative notification.Conclusion:The Tribunal confirmed the lower authorities' decision to deny the benefit of Notification No. 64/88 due to the appellant's failure to produce the required NMI-CDE Certificate. However, recognizing the appellant's detailed submissions and the potential applicability of Notification No. 138/88, the Tribunal remanded the matter back to the original authority for a fresh determination of the appellant's entitlement under the alternative notification, ensuring a fair and just resolution.