TaxTMI 
TaxTMI 
2005 (5) TMI 165
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....f redemption fine of Rs. 50,00,000/-. Further he has imposed a penalty of Rs. 20,00,000/- on the appellants. He has also imposed a penalty of Rs. 20,00,000/- on M/s. Wipro GE Medical Systems, Bangalore under Section 112 (a)/(b) of the Customs Act, 1962. The appellants have strongly challenged the findings of the Adjudicating authority.  2.Shri B.V. Kumar, learned Advocate appeared for the appellants and Smt. Shobha L. Chary, learned JCDR appeared for the Revenue.  3.The learned Advocate said that the goods were sold on High Seas Sales Contract by M/s. Wipro GE Medical Systems Ltd., Bangalore to the appellants vide High Seas Sales Agreement dated 30-12-1999. The goods were declared as partial shipment of GE 0.2T Signa Profile Magnetic Resonance Imaging System (hereinafter referred to as the 'MRI System'). However on examination, the goods were found to be 'Path Speed Work Station' which in the opinion of the Revenue was not entitled for the exemption Notification. The learned Advocate explained the functioning of the system and said that it can be used in conjunction with MRI system for storing and retrieval of MRI images. It definitely enhances the working of MRI ....
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.... an object or device which adds to the effectiveness of something else cannot be considered to be an integral part of the equipment but it can only be an 'accessory'. 4.The learned  JCDR urged the following points :- The appellants imported first shipment of the MRI system vide Bill of Entry 259838, dated 11-2-2000. The description in the Bill of Entry as well as in the invoice was "partial shipment of GE Signa Profile MRI System". In the second shipment also, the declaration was "partial shipment of GE Signa Profile MRI System". Even though in the first shipment, the entire MRI System was imported, the appellants declared the second shipment also as MRI System. Actually on examination, it was found to be 'Path Speed Work Station' which consists of a Computer system. In view of this clear cut misdeclaration, the longer period is applicable to the extent confiscation and penalties are justified. The learned JCDR urged that the impugned goods are nothing but "Picture Archiving and Communication System". This enables the pictures taken in either MRI or X-ray or Ultra scan to be stored and later retrieved for various purpose. This 'Path Speed Work Station' itself is a stand....
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....rocessing system under import is neither essential for the MRI nor it is intended exclusively for the MRI system. (Para 22 of the impugned Order-in-Original). (3) The value of the goods claimed as accessories is Rs. 2,19,67,500/-while the value of the main MRI system cleared was Rs. 1,90,32,468/- and it is beyond imagination that an MRI system or any equipment can have an accessory which is costlier than the system itself. (Para 21 of the impugned Order-in-Original). In order to decide the issue, one should understand the function of the impugned goods. Similar goods are in the use of TATA Memorial Hospital, Mumbai. The appellants have produced a document dated 30-12-2003 from the Medical Superintendent, TATA Memorial Hospital, Mumbai. In the above document, the use of the equipment is outlined. We are giving the following extract from the letter :- "Tata Memorial Hospital is a tertiary care centre for Cancer. Evaluation of Cancer requires comparing of images accrued over a period of time for proper diagnosis and treatment. It has been our experience that manual storage of radiographs are cumbersome, time consuming for retrieval....
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....es throughout the hospital or in their office through a secure web server. The system can be configured to automatically acquire all prior images, which become available in the patient's virtual folder in the PACS. Images will be permanently stored at the Hospital in a DVD jukebox, eliminating lost records. PACS can reduce or even abolish the use of films, resulting in cost savings. Finally, patients will benefit because they will no longer need to bring their x-rays to their physicians. For those situations where films are still needed, the hospital will have the ability to print images. The George Washington University Hospital is excited to provide clinicians and patients with a including a filmless picture archiving communication system that will significantly improve patient care." In the literature relating to the impugned goods, the following advantages of the system have been given :- (1) Improves the productivity of CT and MR scanner. (2) Decreases operational costs through film related savings. (3) Promotes high speed, seamless acces....