2014 (4) TMI 382 - HC - Customs

Rate of duty - import of Gloves Exemption from Tax - Classification Whether imported goods qualify to attract the benefit of S.N. 28 of Central Excise notification 002/2011 - No evidence to prove - Import procedure not followed - No Basic details mentioned Held that - Medical examination gloves are disposable gloves used during medical examinations and procedures that help to prevent contamination - Medical Examination gloves need to be kept in a hygienic atmosphere unlike protective gloves used for other purposes - The import documents submitted by the importer give the description as Latex Examination Gloves only - None of the documents describes the goods as medical examination gloves - As per the Import procedure every package of imported goods should mention basic details such as the name of Manufacturer description quantity specification etc of the commodity - The said consignment has come in gunny bags without any details or markings which state the true nature of the goods. No logo or markings regarding the manufacturer or of any quality standards have been seen either on the goods or packages - As such there is no material evidence to show that the impugned goods are not general purpose gloves widely used in many areas of life - Therefore the goods are not medical examination gloves and therefore not eligible for the claimed duty exemption under S.N. 28 of Central Excise Notification 002/2011 Decided against assessee. Release of goods - Demurrage charges Held that - Assessee is ready to satisfy the dues payable in terms of Ext.P2 and that in respect of the disputed amount and he is ready to furnish Bank Guarantee - If the petitioner wants to have the goods released it will be open for the petitioner to move the appellate authority by filing necessary I.A in this regard as well and if any such proceeding is filed forthwith the same shall be considered along with the I.A preferred to waive the pre- deposit Decided partly in favour of assessee.

Summary

Issues:
1. Rate of duty payable for imported gloves under Central Excise exemption notification.
2. Appeal against the order rejecting the duty exemption claim.
3. Request for interim relief to avoid demurrage charges.

Analysis:
1. The primary issue in this case pertains to the rate of duty payable for imported gloves claimed to be 'Surgical and Medical Examination Gloves' under a specific Central Excise exemption notification. The competent authority rejected the petitioner's claim based on the lack of evidence proving the imported goods as medical examination gloves. The authority highlighted discrepancies in the import documents, packaging, and descriptions provided by the importer, concluding that the gloves were not eligible for duty exemption as per the notification.

2. The petitioner, aggrieved by the order, filed an appeal seeking a review of the decision. The appellate authority is currently considering the matter. Meanwhile, the petitioner faced challenges due to heavy demurrage charges imposed by the Port Trust while the case is pending. The petitioner expressed willingness to pay the undisputed dues and provide a bank guarantee for the disputed amount. The court acknowledged the situation and advised the petitioner to seek interim relief through the appellate authority, emphasizing the procedural requirements under the Customs Act for such requests during ongoing proceedings.

3. To address the petitioner's concerns regarding the demurrage charges and the release of goods, the court directed the petitioner to approach the appellate authority with necessary applications for waiver of pre-deposit and release of goods. The court instructed prompt consideration of these requests within a specified timeframe to alleviate the petitioner's hardships. The writ petition was disposed of with instructions for the petitioner to submit relevant documents to the concerned authority for further action.