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Issues:
1. Whether additional customs duty is payable on Foley Balloon Catheters. Analysis: The petitioners imported Foley Balloon Catheters and contested the imposition of additional customs duty, arguing that the goods are not subject to excise duty under the Central Excises and Salt Act, 1944, hence no additional duty should be levied under Section 3 of the Customs Act, 1962. The Assistant Collector of Customs initially ruled in favor of imposing additional duty, but the High Court disagreed, stating that Foley Balloon Catheters are classifiable under Tariff Item 9018.39 of the Customs Tariff Act, 1975. The Court noted that previous decisions by the Central Excise and Gold (Control) Tribunal and the Bombay High Court had classified Foley Balloon Catheters as suction catheters, exempting them from duty. However, an amendment to Notification 208 in 1991 excluded Foley Balloon Catheters from the exemption, subjecting them to customs duty. The Court delved into the provisions of Section 3 of the Customs Tariff Act, 1975, which mandates additional duty equal to the excise duty on a like article produced in India. The Court highlighted that Notification 339/86-C.E. exempted certain medical instruments, including suction catheters, from excise duty. The Court drew parallels between items listed in the Customs and Excise notifications, emphasizing that the exclusion of Foley Balloon Catheters from the excise duty exemption did not automatically subject them to additional customs duty. The Court reasoned that despite the exclusion from the excise duty exemption, Foley Balloon Catheters were not liable to pay additional duty under the Customs Tariff Act. The Court also addressed a situation where a sister concern of the petitioner had a similar dispute in Madras, resulting in conflicting decisions by the Assistant Collector and the Collector. The Court emphasized the need for consistency and upheld the Collector's decision as superior. Additionally, the Court noted that Foley Balloon Catheters were freely importable under the Import and Export Policy, further supporting the exemption from additional duty. Consequently, the Court allowed the writ application, set aside the Assistant Collector's order, and directed the issuance of necessary writs without costs.
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