2004 (8) TMI 504 - AT - Customs

Summary

Issues:
- Provisional assessment of imported medical equipments
- Investigation into post-importation conditions
- Demand of duty, confiscation, and penalty
- Quanta of redemption fine and penalty determination

Provisional Assessment of Imported Medical Equipments:
The case involves 14 consignments of medical equipments imported between August 1990 and November 1992. While two consignments were assessed to NIL duty, the remaining 12 were subject to provisional assessment. Subsequently, an investigation revealed non-compliance with post-importation conditions, leading to a show cause notice proposing duty recovery, confiscation, and penalty. The Commissioner of Customs passed an order confirming a duty demand of Rs. 9,74,996 on two consignments, along with confiscation and a redemption fine of Rs. 47.00 lakhs, and a penalty of Rs. 50,000.

Investigation into Post-Importation Conditions:
Following an investigation into post-importation compliance, a show cause notice was issued proposing duty recovery, confiscation, and penalty due to non-fulfillment of conditions. The Commissioner's order confirmed a duty demand, confiscation, and imposed a redemption fine and penalty, leading to the present appeal.

Demand of Duty, Confiscation, and Penalty:
The Tribunal noted that major issues had been settled in a previous order, leaving the quanta of redemption fine and penalty as the limited questions before them. The Tribunal considered arguments from both sides regarding the excessive redemption fine and penalty imposed by the Commissioner. The Tribunal reduced the redemption fine to Rs. 35.00 lakhs but sustained the penalty imposed by the Commissioner.

Quanta of Redemption Fine and Penalty Determination:
The Tribunal rejected the argument that the redemption fine should be based on the date of confiscation, emphasizing that liabilities for imported goods are determined based on the date of importation. Citing relevant legal provisions and precedents, the Tribunal reduced the redemption fine to Rs. 35.00 lakhs, considering factors such as the importer's status as a non-profit hospital. The penalty imposed by the Commissioner was upheld as reasonable and justified. The Tribunal ordered the appellants to pay the reduced redemption fine, duty, and penalty to redeem the goods.