1997 (4) TMI 193 - AT - Customs

Summary

Issues:
1. Dispute over classification of imported goods as Blood Cell Separators or Blood Counting Chambers.
2. Validity of confiscation order and imposition of redemption fine and penalty.
3. Allegation of misdeclaration by the appellant company.

Issue 1: Classification Dispute
The case involves a dispute regarding the classification of the imported goods as either Blood Cell Separators or Blood Counting Chambers. The appellants imported the items listed as "Blood Cell Separators" under the Open General License, while the Department contends that the goods fall under "Blood Counting Chambers," a restricted item requiring a valid Import License. The Tribunal considered evidence including labels on the equipment, examination reports by D.R.I. Officers, and Import-Export Policy listings. The appellants argued that both items are the same, supported by a letter from their foreign supplier, but failed to provide substantial evidence. The Tribunal referenced a previous order highlighting the distinction between the two items based on their functions and characteristics.

Issue 2: Validity of Confiscation and Penalties
The Commissioner of Customs had initially ordered the confiscation of the imported goods and imposed a redemption fine and penalty on the importing firm. The Tribunal set aside the original order and remanded the case for de novo adjudication. The Tribunal, after reviewing submissions from both sides and case records, upheld the confiscation due to the requirement of a valid Import License for the goods. However, considering the appellants' lack of intention to misdeclare and the higher duty paid by declaring the goods as Blood Cell Separators, the Tribunal reduced the redemption fine and penalty imposed.

Issue 3: Allegation of Misdeclaration
The appellant company was accused of misdeclaration for importing the goods as Blood Cell Separators under the OGL. The Tribunal found that the appellants had a bona fide belief in the importability of the goods under OGL, supported by past imports without objections from Customs. The appellants' declaration as Blood Cell Separators led to a higher duty payment, indicating no benefit from misdeclaration. The Tribunal concluded that while unintentional contravention occurred due to the need for a valid Import License, the appellants' actions did not demonstrate an intention to misdeclare, leading to a reduction in the redemption fine and penalty.

In conclusion, the Tribunal upheld the confiscation of the goods as Blood Counting Chambers requiring a valid Import License. The reduction in redemption fine and penalty was based on the appellants' lack of intention to misdeclare and the higher duty paid. The judgment clarified the distinction between Blood Cell Separators and Blood Counting Chambers, emphasizing the importance of accurate classification in importation under the relevant policies.