1983 (6) TMI 175 - AT - Customs

Summary

Issues:
1. Assessment of imported bone cement under specific headings of the Customs Tariff Act, 1975.
2. Rejection of refund claim by Assistant Collector and subsequent appeal before the Appellate Collector.
3. Central Government's issuance of Show Cause Notice proposing re-assessment under a different heading.
4. Delay in responding to the Show Cause Notice by the importer.
5. Tribunal's consideration of the case and final classification of the bone cement.

Analysis:
1. The case involved the assessment of imported bone cement, Simplex RO, by Dr. Tanna under Heading 39.01/06 of the Customs Tariff Act, 1975. The initial assessment imposed duties at 120% + 20% AD + 40% CVD as a Polymer. Dr. Tanna disagreed with this assessment and filed a refund claim, which was rejected by the Assistant Collector due to lack of specified heading for the claim.

2. Dr. Tanna appealed this decision to the Appellate Collector, who allowed the appeal and ordered reassessment of the goods under Heading 90.19 CTA, classifying them as medical appliances with a lower duty rate of 40% + 5% AD. The Central Government, however, deemed the Appellate Collector's order as legally unsustainable and issued a Show Cause Notice proposing re-assessment under Heading 30.04/05 CTA.

3. Despite delays in responding to the Show Cause Notice, Dr. Tanna eventually engaged with the Central Government, highlighting alleged injustices and discrepancies in the process. The case was transferred to the Tribunal as a deemed appeal for further review and resolution.

4. The Tribunal, after due consideration, referenced the Supreme Court judgment cited by the Department's Representative to determine the timeliness of the Show Cause Notice. It concluded that the Notice was not time-barred. Additionally, upon evaluating the nature of the bone cement, the Tribunal found it did not fit the classification of a synthetic resin, plastic material, or a medical appliance under the relevant headings.

5. The Tribunal ultimately classified the bone cement akin to dental cement under Heading 30.04/05 CTA, setting aside the previous order-in-appeal. Consequently, it directed the re-assessment of the bone cement under the correct heading and ordered the grant of a refund for the customs duties to Dr. Tanna.