TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the thermal printers imported are classifiable under Customs Tariff Item 9018 90 99 (instruments and appliances used in medical sciences) or under Customs Tariff Item 8443 32 90 (other printing machinery capable of connecting to ADP machines/networks); (ii) Whether the departmental demand of differential duty, invocation of extended limitation under section 28(4) of the Customs Act, confiscation and penalties (including penalty under section 112(a) on the manager) are sustainable in view of the classification decision.
Issue (i): Classification of the imported thermal printers: CTI 9018 90 99 or CTI 8443 32 90.
Analysis: The competing headings were compared using chapter notes and HSN explanatory notes. Chapter 90 excludes articles covered by Chapter 84 only if not specifically designed for medical use. Evidence before the Tribunal included product literature, white papers and expert declarations showing that the printers produce diagnostic-quality hardcopy on heat-sensitive medical film, are used with medical imaging modalities, and meet parameters (spatial and contrast resolution) necessary for diagnostic printing. The department produced no evidence disproving medical use for these specific models. Authorities and past Tribunal decisions were applied to hold that goods specifically designed or adapted for professional medical use fall within Chapter 90 despite using a thermal print process common to other printers.
Conclusion: The thermal printers are classifiable under CTI 9018 90 99 as instruments and appliances used in medical sciences (in favour of the assessee).
Issue (ii): Sustainability of the demand for differential duty, invocation of extended limitation under section 28(4), confiscation and penalties (including penalty imposed on the manager).
Analysis: The demand, confiscation and penalties were consequences of the re-classification under CTI 8443 asserted by the department. Since the re-classification was not established and the Tribunal has held the goods to be classifiable under CTI 9018, the foundational basis for invoking differential duty, confiscation and the penalties collapses. The penalty on the manager was imposed consequent to the order against the importer; with that order set aside, the consequential personal penalty was also examined and found unsupported.
Conclusion: The demand of differential duty, confiscation and penalties (including the penalty of Rs. 10 lakhs imposed under section 112(a) on the manager) are unsustainable and are set aside (in favour of the assessee).
Final Conclusion: On the substantive classification and consequential reliefs, the departmental order dated 17.02.2020 is set aside and the appeals are allowed, resulting in annulment of the demand, confiscation and penalties tied to the erroneous re-classification.
Ratio Decidendi: Goods that are specifically designed or adapted for use in professional medical diagnosis and that produce diagnostic-quality output are classifiable under Chapter 90 (CTI 9018) even if they employ a thermal print process; the burden to prove re-classification rests on the revenue and absent such proof consequential demands and penalties cannot be sustained.
TaxTMI 
TaxTMI 
