2018 (12) TMI 1791 - AT - Customs

Confiscation of 5 items out of imported consignment - Auto Hematology Analyzer -Semi-Automatic Chemistry Analyzer - LED Surgical Light - Digital Forehead Thermometer - Picture Display - non-compliance of requirements contained in BIS/Legal Metrology Act, 2009/Medical Devices Rules, 2017 - HELD THAT - The description of the goods as per bill of entry dated 24-8-2017 shows 53 items out of which major part of the items are Medical Equipments. The five items, which are shown in the table above have been detained by Customs officers alleging non-fulfilment of conditions of BIS/Legal Metrology Act, 2009/Medical Devices Rules, 2017, it is pertinent to mention that the appellants have not issued a show cause notice prior to adjudication. Auto Hematology Analyzer - Semi-Automatic Chemistry Analyzer - HELD THAT - The Learned Counsel for appellants been at pains to give a detailed description of the goods imported by producing the literature as well as pictures of the goods imported. The relevant Rules under Medical Devices Rules, 2017 has come into effect only on 1-1-2018 - the allegation that the appellants have not obtained certificate under the said Rules in respect of Auto Hematology Analyzer and Semi-Automatic Chemistry Analyzer cannot sustain as the imports are prior to this date. The confiscation and penalties imposed on these goods are set aside. LED Lights - HELD THAT - The goods are in the nature of lights used in hospitals/operation theatres. It can be easily inferred that such lights are Shadowless Lights, LED Operating Lamps. The specification of the goods have been also furnished by Learned Counsel for the appellants. Therefore, the allegation that these items require compliance under Compulsory Registration Order of BIS is incorrect. Digital Forehead Thermometer - HELD THAT - As per Import Policy, Clinical Thermometer requires certificate under BIS/Legal Metrology Act, 2009. Clinical Thermometer is of two types and is different from Digital Forehead Thermometer. As per the Clinical Thermometers (Quality Control) Order, 2001, dated 9-11-2001, the restrictions are applicable only to Clinical Thermometer, which are in the nature of Solid Stem Type and Enclosed-Scale Type. It does not cover Digital Forehead Thermometer. Therefore, confiscation of these goods alleging violation of the said Acts cannot sustain. Picture Display - HELD THAT - From the BIS Compulsory Registration Order Schedule, it is seen that Picture Display imported by the appellants are not covered in Sl. No. 39. The goods covered in Sl. No. 39 are Plasma/LCD/LED Television. Merely because the Digital Display is in the nature of LED/LCD, the department has alleged that these goods require certification under BIS. The goods are nothing but vertical touch screen LED Display Panel, which is programmable for customer requirements. It cannot be equated with LED Television and the confiscation of this item alleging requirement of BIS certification is incorrect. The confiscation of the goods as well as the redemption fine and penalties imposed cannot sustain - appeal allowed - decided in favor of appellant.

Summary

Issues: Non-compliance with BIS/Legal Metrology Act, 2009/Medical Devices Rules, 2017

Detailed Analysis:

1. Issue of Non-Compliance and Confiscation:
The appellants imported medical instruments but failed to meet the registration requirements under various Acts. Due to non-compliance, the Customs department confiscated five items and imposed penalties. The appellants challenged this decision, leading to the current appeal.

2. Argument Regarding Medical Devices Rules, 2017:
The appellants contended that the Medical Devices Rules, 2017, which came into effect on 1-1-2018, were not applicable to their imports made before this date. Therefore, the confiscation and penalties related to items requiring certification under these rules were unjustified.

3. Dispute Over LED Surgical Light Certification:
Regarding the LED Surgical Light, the appellants argued that the requirement for BIS certification applied to Self-Ballasted LED Lamps for general lighting, not to surgical LED lights used in hospitals. They emphasized the distinction between the two types of LED lights to challenge the confiscation.

4. Differentiation Between Clinical and Digital Forehead Thermometers:
The appellants highlighted the variance between Clinical Thermometers, subject to BIS norms, and Digital Forehead Thermometers, which did not fall under the same regulations. They argued that the confiscation of Digital Forehead Thermometers for non-compliance was unfounded.

5. Issue of Picture Display Certification:
The Customs department detained Picture Display items alleging non-compliance with BIS norms. The appellants clarified that the products were not Plasma/LCD/LED TVs but programmable LED Display Panels, exempt from the BIS certification requirement for televisions. They successfully challenged the confiscation based on this distinction.

6. Judgment and Relief Granted:
After detailed examination and arguments, the judge found the confiscation, redemption fines, and penalties unjustified. The judge set aside the Customs department's decision, allowing the appeal and granting consequential reliefs to the appellants.

In conclusion, the judgment addressed the issues of non-compliance with specific Acts and regulations, highlighting the importance of accurately applying certification requirements to imported goods. The detailed analysis of each item and relevant regulations led to the decision to overturn the confiscation and penalties, providing relief to the appellants.