1998 (8) TMI 371 - HC - Customs

Court grants duty exemption on 'Scalp Vein Sets', orders Rs. 1,74,177 refund to petitioner.

The court ruled in favor of the petitioner in two writ petitions challenging the duty imposed on imported 'Scalp Vein Sets'. The court held that the goods ... Life saving equipment Issues:1. Validity of duty imposed on imported goods.2. Interpretation of 'Scalp Vein Sets' as 'Intravenous Canulae and Tubing for long term use'.3. Jurisdiction of the Collector in imposing duty.Issue 1: Validity of duty imposed on imported goodsThe petitioner filed writ petitions seeking a Writ of Certiorari to quash an order by the 2nd respondent imposing duty on 'Scalp Vein Sets' imported under Bill of Entry No. 5367, dated 14-8-1985. The Customs Department held that the goods were not covered under OGL and were to be destroyed after single use. The Collector of Customs confiscated the goods, imposed a redemption fine, and assessed duty amounting to Rs. 1,74,177. The petitioner contended that the duty recovery was in disregard of Notification No. 208-Cus and approached the court as no alternate remedy was available under the Customs Act.Issue 2: Interpretation of 'Scalp Vein Sets' as 'Intravenous Canulae and Tubing for long term use'The dispute centered around whether 'Scalp Vein Sets' should be classified as 'Intravenous Canulae and Tubing for long term use' exempted from duty. The respondents argued that the goods were disposable infusion sets for single use and not covered under OGL. The petitioner contended that 'Scalp Vein Sets' fell under the category of 'Intravenous Canulae for long term use' and were life-saving equipment. The petitioner referenced a judgment by the Tribunal stating that 'Scalp Vein Sets' were indeed 'Intravenous Canulae and Tubing for Long Term Use', thus eligible for duty exemption.Issue 3: Jurisdiction of the Collector in imposing dutyThe petitioner argued that the Collector's order was without jurisdiction and not based on a proper understanding of the law. Citing the Tribunal's judgment, the petitioner claimed that the duty collection on 'Scalp Vein Sets' was unjustified and should be refunded. The court concurred with the petitioner's interpretation, stating that 'Scalp Vein Sets' were entitled to the benefit of exemption under Notification 208/81. Consequently, the court quashed the impugned order and directed the respondents to refund the duty paid by the petitioner.In conclusion, the court allowed both writ petitions, ruling in favor of the petitioner. The duty imposed on the 'Scalp Vein Sets' was deemed unjustified, and the petitioner was entitled to a refund of Rs. 1,74,177. The judgment highlighted the importance of proper classification and interpretation of goods for duty exemption, emphasizing the need for adherence to relevant notifications and legal provisions in customs matters.