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2024 (4) TMI 337 - AT - CustomsSeeking clearance of imported goods - (second hand/used) viz., Puritan Bennett 7200 series ventilator, Drager Medical Babylag 2000 Neonatal Ventilator, Fresenius Medical 5008 Cordiax Dialysis Machines and Taema Alys Ventilator - prohibited goods or not - e-waste/hazardous waste - HELD THAT - Admittedly, the goods, used medical devices, were found to be in good working condition having minimum residual life of 5 years or more as certified by the Chartered Engineer. Accordingly, in view of such admitted facts, the goods under import do not qualify in the definition of waste as defined under Rule 3(38) of Hazardous and Other Waste Management Rules, 2016. It is further found that the impugned order is vitiated for lack of jurisdiction, which is a primary requirement and it is held that the Adjudicating Authority lacks jurisdiction to pass the order, as admittedly no SCN was served in accordance with section 124 of the Customs Act. The impugned order is set aside - appeal allowed.
Issues:
The issues involved in the judgment are: 1. Import of second hand/used medical devices without proper licensing. 2. Confiscation of imported goods under Hazardous and Other Waste Management Rules, 2016. 3. Lack of jurisdiction due to absence of Show Cause Notice (SCN) under section 124 of the Customs Act. Issue 1: Import of Second Hand/Used Medical Devices without Proper Licensing: The Appellant, a multi-specialty hospital, imported second hand medical devices without the required import license from the Central Licensing Authority. The Deputy Commissioner observed that the imported goods were used Critical Care Equipment covered under Basel No. B1110 of Schedule VI of the Hazardous and Other Waste Management Rules, 2016. Consequently, the goods were ordered for confiscation under section 111(d) of the Customs Act and for re-export to the supplier at the importer's cost within 30 days. A penalty of Rs.20,000 was also imposed under section 112(a) of the Customs Act. Issue 2: Confiscation of Imported Goods under Hazardous and Other Waste Management Rules, 2016: The Commissioner (Appeals) upheld the confiscation order, stating that the imported goods were prohibited under the Hazardous Waste Management Rules 2016. However, the Appellant argued that the goods were not e-waste or hazardous waste, as certified by a Chartered Engineer. The goods were in good working condition with a residual life of 5 years or more, as per the supplier's certification and valuation. The Tribunal found that the goods did not qualify as 'waste' under Rule 3(38) of the Hazardous and Other Waste Management Rules, 2016. Additionally, it was noted that no SCN was issued, rendering the impugned order lacking in jurisdiction. Issue 3: Lack of Jurisdiction due to Absence of Show Cause Notice (SCN) under Section 124 of the Customs Act: The Appellant contended that the adjudication order was passed without issuing a proper SCN as required under section 124 of the Customs Act. The absence of a detailed SCN proposing confiscation and listing allegations was highlighted, leading to a lack of jurisdiction for the Adjudicating Authority. The Tribunal agreed that the impugned order was vitiated due to the absence of a proper SCN, which is essential for ensuring natural justice and legal validity. Separate Judgement by Hon'ble Mr. Anil Choudhary, Member (Judicial): The Tribunal, led by Hon'ble Mr. Anil Choudhary, allowed the appeal, setting aside the impugned order. It was held that the imported goods did not meet the definition of 'waste' under the Hazardous and Other Waste Management Rules, 2016, as they were in good working condition with a residual life of 5 years or more. The lack of jurisdiction due to the absence of a proper SCN was also noted, leading to the decision in favor of the Appellant. Consequential benefits, including the release of goods for home consumption on payment of applicable duty, were granted to the Appellant, who was also relieved from demurrage and other port charges attributable to the Revenue's delay in clearance.
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