2005 (6) TMI 195

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....tioned Notification, the exemption is available for Ultrasonic Equipment (A-scan/Pacchy meter) (List No. 29 at Sl. No. 4). The appellants submit that the equipments imported are 'Probes Ultrasonic Equipment'. The Ultrasound Scanners which would be manufactured by the appellants are having features of A-scan, B-scan and M-scan. The Revenue denied the benefit of the exemption on the ground that according to the Notification, only 'probe' meant for manufacture scanner having A-scan facility is entitled for exemption as the same is specifically mentioned. Since the scanner manufactured by the appellants is having B-scan & M-scan facilities in addition to A-scan facility, the exemption Notification is not applicable in respect of 'Medical Probes....

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....he equipment having multiple applications are entitled to benefit of exemption under Notification No. 16/2000-Cus., dated 1-3-2000. (iii)       The learned Advocate referred to the Tariff Advise given by the Conference of Commissioners of Customs held in 1996, at Chennai, clarifying that if Ultrasound Scanners had features of B-scan and M-scan in addition to A-scan, the benefit of exemption should not be denied. The above Tariff Advice has been completely ignored by the learned Commissioner (Appeals). The Circulars issued by the Department are not advisory in character but binding on the Central Excise and Customs officers. (iv)       The learned Advocate relied on the follow....

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....mption under a Notification, per se, cannot be a cause of action for initiating penal proceedings : (a)        Northern Plastics Ltd. v. CC - 1998 (101) E.L.T. 549 (S.C.) (b)        CC v. Maruti Udyog Ltd. & vice versa - 2002 (141) E.L.T. 392 (T) = 2002 (48) RLT 784 (T) Hence a penalty of Rs. 5,000/- imposed on M/s. Wipro GE, Medical Systems Ltd. is also not sustainable in law. (viii) Interest has been collected without an authority of law. 4. The learned SDR argued that the exemption is limited only to 'Probes' which are used in the scanners having A-scan facility. The exemption Notification_should be interpreted strictly since in these cases the Medical P....