EQUIPMENT SALES CORPORATION Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is against the orders of the Collector of Customs, Bangalore dated 27.3.1987.

(2.) THE appellants are dealers in Medical equipments. They placed orders with M/s. Pharma Plast, Drena Plast Division, Denmark for the supply of Ostomy products, Drainage Bags, Bulk Sterile etc. The Drainage Bag consists of a long flexible drainage tubing with a connector on one end with a protective cap and the other end goes into the bag. There is also an outlet for emptying the bag. The appellants filed a Bill of Entry No. 71 dt. 16.2.1985. The importers claimed that the goods imported were covered under OGL vide Appendix 6, List No. 2, SI. No. 38 of the Import Trade Control Policy for AM 1984 -85. The appellants contended that the goods imported were wholly exempted from the customs duty as also the additional duty of customs, in terms of Notification 208/81 -Cus., dated 22.9.1981. The Customs House did not accept the appellants' contentions and a show cause notice was issued on 7.3.1985 asking the appellants to show cause as to why the goods should not be confiscated and penalty imposed. The appellants filed a detailed reply and on 16.4.1985, the Collector of Customs, Bangalore passed orders confiscating the goods with an option to redeem the same on payment of a fine of Rs. 9,16,000/ -.

(3.) AN appeal was filed before the Tribunal. The appellants also produced clarifications issued by the Director General of Health Services stating that the Urinary Drainage Bags should be classified as Male and Female Urinary Incontinence Sets and was included in Notification 208/81 -Cus., dated 22.9.1981 (Item No. 22). After admitting the evidence, the Tribunal directed the Collector of Customs, Bangalore to examine the issue as de novo.