9911796707
TMI Blog2007 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... the remand are that the Commissioner should give his findings on the applicability of the extended period and consequent effect of quantum on duty demanded and on penalty. 3. The appellants imported insulated electrical cable lengths and cleared the same as 'patient cables' availing benefit of Notification No. 165/86- Cus. as amended. The condition of the exemption is that the components of ECG machines should be imported for their manufacture. As some of the components imported were sold as warranty spares/replacements, Revenue proceeded against the appellants for demand of differential duty. The first order confirming duty and imposing equivalent penalty under Section 114A of Customs Act was issued on 21-10-1997. When the appellants c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants. Therefore, it is not correct to say that the benefit of exemption Notification cannot be extended to them. (iii) Further she referred to the statement of Shri D. Krishnan, Authorized Representative and said that nowhere he has admitted violation of conditions of the Notification with an intention to evade payment of Customs duty. (iv) She submitted that at the time of import, they were under the bona fide belief that the components would be used only for the manufacture of ECG machines. (v) The items cleared by them as 'patient cables' were used in the manufacturing process of ECG machines during which a sub assembly namely, patient cable assembly arises. Those sub- assemblies are cleared as spares on bona fide belief that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res/warranty replacements. The plea of the appellant that they were under a bona fide belief that the components used for patient cable assembly and cleared as spares would also be entitled for the benefit of the Notification has not been accepted by the Commissioner. On going through the statement Of Shri D. Krishnan, we do not find that the appellants were under such bona fide belief. Later the Notification was extended to patient cables imported for use as spares. The observation of the Commissioner that prior to the amendment the benefit of the exemption Notification cannot be given to the components imported for use as spares, is correct. We do not find any reason to interfere with the finding of the Commissioner that the longer period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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