9911796707
TMI Blog1998 (11) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... ith allow clearance of the goods namely "infusion sets" free of customs duty and additional duty in accordance with law. 2.The case of the petitioner is briefly stated hereunder : The liberalised policy for April, 1988 - March, 1991 not only placed life-saving drugs and equipments under the Open General Licence category obviating the need for obtaining any import licence with respect thereon, but also the said life-saving drugs and equipments were given by the benefit of total exemption from import duty by statutory Exemption Notifications issued under Section 25(2) of the Customs Act. By Notification No. 208-Cus., dated 22-9-1981 as amended by subsequent Notification No. 367/86-Customs, dated 24-6-1986, 53 items of life-saving equipments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Customs authority disallowed the claim of exemption and instead assessed the goods to a basic duty of 40 per cent plus 45 per cent = 85 per cent as well as an additional duty of 15 per cent totalling 100 per cent ad valorem. Thus, the petitioner was called upon to pay the huge sum as import duty on the invoice value of US $ 44,000.00. The statutory authorities uniformly took the view that "Infusion sets" being life-saving equipments, qualified for exemption from duty under Item No. 19. Intravenous Canulae and Tubing (for long term use). As such the present infusion sets answer the description intravenous canulae and tubing. In the absence of specific entry relating to infusion sets in the exemption notification as originally issued, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t control and customs authorities allowed import without calling for any import licence, thus acknowledging and accepting the position that the goods were life-saving equipment. Infusion sets falling within the scope of the Open General Licence List 2 of Appendix 6 of the Import Policy for 1988-91. However, regarding import duty, the petitioner claimed that the goods were wholly exempted from customs duty under Customs Notification No. 208 of 1981, dated 22-9-1981 as amended, hence no import duty was payable thereon. The Customs authority disallowed the claim of exemption and instead assessed the goods to a basic duty of 40 per cent plus 45 per cent = 85 per cent as well as an additional duty of 15 per cent totalling 100 per cent ad valorem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... swer at a later point of time. 6.We are concerned with two items, namely, Item No. 19 and 44 in the Notification No. 208. "Entry No. 19 : Intravenous Canulae and tubing for long term use." "Entry No. 44 : Ancillaries for Blood Component. Therapy required for the treatment of cancer, namely, Y Type blood solution recipient set; Transfer pack 1000 ml. and 300 ml., Butterfly needle G., Infusion set; Disposable herasis Bowl 225 ml. and 373 ml., Hydroxy ethyl starch solution (Plasma Sterile); Wasting harness with bypass; and Waste bags." With regard to Entry Item No. 19 which is for long term use, I had an occasion to consider the same in Writ Petition No. 12166 of 1988, dated 10-8-1998. While considering the said aspect in that case, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00" imported by them are quite different from the "Butterfly needle G., Infusion Sets" figuring at Serial No. 44 in the notification. Further, apart from the view expressed by the licensing authority, in the import policy the Department is competent to take independent decision for levy of customs duty and also to see whether the benefit of notification can be extended or not. 8.Even though the learned Counsel appearing for the petitioner has cited the clarification letter issued by the Director General of Health Services stating that the "Infusion sets' are meant for giving Intra Vescular drip and are covered under Item 19 of Notification No. 208 of 1981, dated 22-9-1981, the very same Director General of Health Services, New Delhi in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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