2019 (7) TMI 582

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....iod is assailed by the importer in appeal no. 199/09 while setting aside of redemption fine imposed in Order-In-Original by the Commissioner of Customs (appeal), Mumbai-III is challenged by the Revenue Department in appeal no. 248/09. 2. Factual backdrop of the case is that appellant importer M/s. Advanced Micronic devises Ltd had imported 4 consignments of D.C. Defibrillators between 30-03-2002 and 1-04-2003 through 4 Bills of Entry. The goods were cleared with the benefit of exemption notification no. 21/2002 as D.C. Defibrillators supplied by one M/s. Zoll Medical Corporation, were stated to be meant for internal use with pace makers, for which notification was applicable. During October 2006, special investigation and intelligence br....

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....he importer. 4. There is no denying of the fact that concessional rate of duty is applicable to D.C. Defibrillators for internal used and pace makers. Learned Counsel for the appellant importer contended that appellant brought imported D.C. Defibrillators meant for internal use and the assessing Officer, after going through the literature of the exporter Zoll company had assessed the duty liability and allowed concessional rate of duty on the basis of notification no. 21/2004. Order-In-Original at page 6 reveals that catalogue of the D.C. Defibrillators imported by the importer was examined by the adjudicated authority but in para 5 of his order the Commissioner of customs (appeals) had given his finding that appellant could not produce ....

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.....C. Defibrillators for external use only. Contrary to such findings the Commissioner of Customs (Appeals) observed in the OIA that the catalogue nowhere speaks about internal use of such D.C. Defibrillators and says that at the best it can be used inside and outside the hospital. Probably to his mind if the instrument or machinery is used outside hospital, it should be regarded as external use of the product which is apparently erroneous understanding in view of the fact that internal use means the use of the machinery in the internal organ of the human body during treatment. Now the question comes if internal use is also to be equated with use in internal organ through implementation process because in the OIO, reference to the weight of t....

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....he open heart surgery same device can be used to deliver electrical shock. However, it is accepted that to give the electrical shock paddles are needed, which is sold by the appellant only as an accessory. Not only this, while selling the defibrillators said paddlers are not sold as an integral component/accessory of the main equipment. To the contrary, their purchase is optional, meaning thereby the choice is that the buyer to purchase paddle or not. During the arguments it was conceded that 99 per cent sale of these defibrillators were without paddles which means that predominantly the goods are sold for external use only. We would also like to reproduce, at this stage the description of the goods in question as given by the appellant its....