1998 (3) TMI 154 - HC - Customs

Summary

Issues:
1. Interpretation of Customs Notification No. 208 of 1981 for exemption of customs duty on imported goods.
2. Classification of imported goods as life-saving equipments.
3. Application of Import and Export Policy of 1988-91.
4. Disallowance of exemption by Customs Authorities.
5. Legal validity of the demand for payment of customs duty.

Analysis:
The petitioner imported Infusion sets under Bill of Entry/Rotation No. 900/88 and claimed concessional assessment under Customs Notification No. 208 of 1981. Customs Authorities disallowed the exemption, assessing duty at 100% ad valorem. The petitioner argued that the goods fell under Open General Licence and were life-saving equipments exempted under the Customs Act, 1962. The sets were classified as List 2 Appendix 6 Sl. No. 8 of Import and Export Policy, April 1988 to March 1991, further supporting the claim for exemption.

The petitioner contended that Infusion sets were exempted under Notification No. 208 of 1981 as life-saving equipments, supported by previous rulings by Customs Authorities. The respondents did not counter these arguments. The court acknowledged the petitioner's import of life-saving Infusion sets and their eligibility for exemption under the said notification. The court emphasized the strict interpretation of the notification's terms, finding in favor of the petitioner's entitlement to exemption.

The court accepted the petitioner's submission regarding the discharge of the bank guarantee furnished during the writ petition process, as the goods had been released. Consequently, the writ petition was allowed, granting relief to the petitioner. The court did not award costs in this matter, concluding the judgment in favor of the petitioner on the grounds of exemption under Notification No. 208/81-Cus., dated 22-9-1981.