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Issues:
Appeal against duty demand, confiscation, and penalty on imported medical equipment under Notification No. 64/88-Cus. without payment of duty. Analysis: The case involved an appeal against an order confirming a duty demand of Rs. 2,82,360 on medical equipment imported without payment of duty, along with confiscation and penalty. The proceedings originated from a show cause notice issued by the Department, alleging non-fulfillment of post-importation conditions under Notification No. 64/88-Cus. The original authority confiscated the goods with an option to redeem on payment of a fine but did not impose a penalty or enforce a duty demand. The Department appealed against this decision, leading to a series of orders and appeals resulting in the confirmation of duty demand, a redemption fine of Rs. 3 lakhs, and a penalty of Rs. 10,000. The appellant contested that the duty demand aspect was not raised before the original authority in the remanded proceedings and was time-barred, which was accepted by the Tribunal. The Tribunal found that the demand of duty confirmed under Section 28 of the Customs Act did not survive in this case, as the original authority exceeded its scope in confirming the duty demand. The Commissioner (Appeals) made observations regarding the demand of duty under Section 125 of the Customs Act, citing a Supreme Court judgment, indicating the Department's right to demand customs duty under this provision. The Tribunal noted the legal position established by the Supreme Court regarding the Department's right to demand customs duty under Section 125 of the Customs Act, without resorting to Section 28. The appellant stated they did not intend to redeem the goods, eliminating the need for duty payment. Regarding the fine and penalty, the Tribunal referred to a Larger Bench decision that settled these issues in favor of the Department, leading to the sustenance of the redemption fine and penalty. Consequently, the appeal was disposed of with the redemption fine and penalty being upheld based on the legal precedents and settled matters.
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