2007 (2) TMI 64

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....he appellants imported insulated electrical cable lengths and cleared the same as 'patient cables' availing benefit of Notification No. 165/86- Cus. as amended. The condition of the exemption is that the components of ECG machines should be imported for their manufacture. As some of the components imported were sold as warranty spares/replacements, Revenue proceeded against the appellants for demand of differential duty. The first order confirming duty and imposing equivalent penalty under Section 114A of Customs Act was issued on 21-10-1997. When the appellants challenged the above mentioned order, the CESTAT passed the final order mentioned supra remanding the matter to the Original Authority. Consequently, the de novo order has been pass....

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....horized Representative and said that nowhere he has admitted violation of conditions of the Notification with an intention to evade payment of Customs duty. (iv) She submitted that at the time of import, they were under the bona fide belief that the components would be used only for the manufacture of ECG machines. (v) The items cleared by them as 'patient cables' were used in the manufacturing process of ECG machines during which a sub assembly namely, patient cable assembly arises. Those sub- assemblies are cleared as spares on bona fide belief that the benefit of Notification can be claimed, for the reason that such sub-assemblies would be ultimately used in the ECG machines, which have been cleared earlier. (vi) She also pointed out ....