CUSTOMS ACT, 1962

Section 112(b)

Penalty - Enhancement of penalty - Import of different type of 'Catheters' - Imposition of

Assessee was regular importer and dealer in Surgical Instruments, Parts & Accessories classifiable under item 9018 CT. It had taken import licences issued by Drug Controller and the main item imported by assessee was different type of 'Catheters'. It was provided under rule 43A of Drugs and Cosmetics Rules, 1945 that "drug" should not be imported by air to India. However, assessee had imported and cleared only Surgical Instruments, Parts & Accessories", including Catheter and not any "drugs". A SCN was issued to assessee alleging mis-declaration and all imports affected during the said period were declared illegal. After following due process, Assistant Commissioner confiscated the goods and allowed redemption on payment of fine and also imposed penalty under section 112(a) Held: Assessee was regularly importing Catheter during the period 23-11-2005 to 17-3-2011 and was paying Customs Duty and no objection was raised by Department during these six years regarding any violation made by assessee. Further, Notification No. 146 E, dated 6-10-2005 issued by Department of Health was not in knowledge of assessee as well as Customs officials and no objection was raised against assessee. Subsequently, after the expiry of six years, a SCN was issued proposing confiscation of the goods imported and also proposing penalty under sections 112 and 117. Original Authority had observed that there was no mis-declaration on the part of assessee while filing the Bill of Entry.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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