2022 (2) TMI 153 - AT - Customs

Classification of imported goods - True Beam Linear Accelerator with all accessories and other accessories (apparatus) - whether classifiable under CTH 90229030 along with apparatus as claimed by the importer or the main instrument to be classified under 90221490 as other equipment under different heading as proposed by the SCN? - time limitation - this is a case of self assessment or otherwise? - HELD THAT - The show cause notice alleges that the assessments initially were made by the appellant-importer by wrongly claiming the exemption notification and mis declaring the classification of the goods and therefore extended period is rightly invokable. However, it is a fact that they have filed Bill of Entry on line. However, ongoing through the records of the case, it is evident that the departmental officers have examined and assessed the goods and only after their satisfaction the goods were released and payment was allowed availing the exemption. Therefore, it cannot be said that the assessment initially was done by the importer himself. The argument of the department that this is a case of self-assessment is factually incorrect. Though the appellant-importer has filed the Bill of Entry in the EDI system goods were subjected to open examination and the proper officer has examined the goods and forwarded it to the concerned group for assessment. Under such circumstances, it cannot be said that the Bills of Entry were subjected to self-assessment. This being the case, it is not open for the department to issue show cause notice invoking longer period and that too alleging suppression, misdeclaration etc. with intent to evade payment of duty. Time limitation - HELD THAT - The importer (appellant) rightly submits that claiming of exemption notification does not tantamount to suppression with intent to evade payment of duty - appeal of importer (filed by Dr. Rai Memorial Cancer Institute) succeeds on the issue of limitation. Appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of imported medical equipment under Customs Tariff Heading (CTH) 90229030, limitation period for show cause notice, self-assessment, suppression of facts, exemption notification, imposition of redemption fine.

Classification Issue:
The appellant-importer, a cancer institute, imported medical equipment declared as a set of "True Beam" Linear Accelerator with accessories. The show cause notice sought reclassification under various headings, demanding differential duty, confiscation, and penalty. The appellant argued that the imported goods constituted a complete system for cancer therapy, falling under Chapter 90. The appellant contended that the department wrongly classified the equipment under 90221490, emphasizing differences between HSN and Indian Customs Tariff. The appellant cited precedents to support the classification of separately shipped goods together. The appellant highlighted the exemption history for Linear Accelerator X-ray, asserting legislative intent for exemption.

Limitation and Self-assessment Issue:
The appellant raised the issue of limitation, arguing that the show cause notice issued in November 2017 was incorrect as the goods were cleared in March 2016, with duty paid in May 2016. The appellant contended that the assessment was not self-assessment, as the goods were examined by departmental officers before release. The appellant relied on cases to demonstrate departmental awareness of facts, challenging the invocation of suppression for duty evasion.

Judgment Analysis:
The Tribunal examined whether the imported apparatus should be classified under CTH 90229030 as claimed by the importer or under 90221490 as proposed by the department. The Tribunal found that the department's allegation of self-assessment was factually incorrect, as the goods underwent examination by officers before release. Consequently, the invocation of a longer period and allegations of suppression were deemed unjustified. The Tribunal ruled in favor of the importer on the limitation issue, rendering the impugned order unsustainable in law. As a result, the importer's appeal was allowed, and the revenue's appeal for imposing redemption fine was dismissed.

Conclusion:
The judgment focused on the correct classification of imported medical equipment and the validity of the show cause notice in light of the limitation period and self-assessment claims. The Tribunal's decision favored the importer, emphasizing the factual examination of goods by departmental officers and rejecting the suppression allegations. The ruling highlighted the importance of adherence to legal procedures and the necessity for accurate classification in customs matters.