1984 (6) TMI 146 - AT - Customs

Summary

Issues:
1. Confiscation of goods under Customs Act, 1962.
2. Classification of imported goods under the Customs Tariff Schedule.
3. Determination of goods as Suction Cathetors.
4. Acceptance of license for clearance of goods.

Analysis:

1. The appeal challenged the order of the Collector of Customs, Bombay, confiscating a consignment of goods described as "Foley Suction Cathetors" under Sections 111(d) and 111(m) of the Customs Act, 1962. The Collector allowed redemption of goods on payment of a fine and imposed a penalty. The issue revolved around the classification and clearance of the imported goods.

2. The Collector classified the goods as surgical rubber goods under Appendix 5 of the Import Policy, requiring a license for import and assessable to duty under the Customs Tariff Schedule. The evidence included labels on the goods and statements indicating the goods were not Suction Cathetors but balloon cathetors. The duty was assessed at 40% basic Customs duty plus auxiliary and countervailing duties.

3. The appellants argued that the goods were Suction Cathetors eligible for import under Open General Licence. The Director-General of Health Services confirmed that Foley Balloon Cathetors could be used as Suction Cathetors based on expert opinions. Certificates from medical professionals supported the classification of the goods as Suction Cathetors, qualifying for duty exemption.

4. The Tribunal held that the goods were indeed Suction Cathetors eligible for clearance under Open General Licence and duty exemption notifications. The Collector's refusal to accept the license offered by the appellants was deemed unjustified. The Tribunal set aside the Collector's order, allowed the appeal, and directed relief for the appellants within a specified timeframe.

This comprehensive analysis highlights the key issues of the legal judgment, including the classification of goods, expert opinions, and the acceptance of licenses for clearance, providing a detailed overview of the Tribunal's decision in favor of the appellants.