1988 (1) TMI 50 - HC - Customs

Summary

Issues:
1. Whether the conditions imposed in the impugned order of the revisional authority violate Notification No. 182-Cus./76, dated 2-8-1976.
2. Whether the revisional authority has the power to impose conditions in the order to ensure compliance with the purpose of the notification exempting articles from tax.

Analysis:
Issue 1:
The petitioner challenged the order of the revisional authority, which set aside the concurrent findings of lower authorities and imposed conditions regarding the interchangeability of components. The petitioner argued that the conditions imposed were not warranted, especially when the revisional authority had accepted the main contention that the components were for manufacturing D.C. Defibrillators, a life-saving equipment used in hospitals. The petitioner relied on Notification No. 182-Cus./76, which exempts life-saving equipment from duty without any conditions. The court acknowledged that the revisional authority had the power to impose conditions to ensure articles were used for the specified purpose, and held that the conditions did not violate the spirit of the notification. The court concluded that the revisional authority acted within its jurisdiction in imposing the conditions, and thus, dismissed the petition challenging the order.

Issue 2:
The court examined whether the revisional authority had the power to impose conditions to ensure compliance with the purpose of the notification exempting articles from tax. The court found that the revisional authority, sitting above the lower quasi-judicial authorities, had the authority to impose conditions to prevent the frustration of the notification exempting articles from tax. The court held that the conditions imposed were to ensure the components were used only for the intended purpose of manufacturing life-saving equipment, and therefore, were valid. The court emphasized that the revisional authority's power to impose conditions was necessary to uphold the purpose of the notification. Consequently, the court dismissed the petition, upholding the revisional authority's power to impose conditions in the order to align with the notification's objectives.