Sandor Medicaids Pvt. Ltd. Vs Commissioner of Customs (Imports) (CESTAT Mumbai)
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) examined two connected appeals arising from an order that reclassified imported I-STAT blood gas cartridges and demanded differential customs duty, confiscation, redemption fine, and penalties. The appellant had imported cartridges used with the I-STAT blood gas analyser and classified them under Customs Tariff Heading (CTH) 9027 as accessories of an analyser, claiming exemption benefits. The Revenue alleged that the cartridges were diagnostic or laboratory reagents classifiable under CTH 3822 and issued a show cause notice proposing reclassification, confiscation, and penalties. The Commissioner accepted the Revenue’s view, confirmed a substantial differential duty, imposed redemption fine, and levied penalties, including on the Managing Director.
Before the Tribunal, the appellant contended that the cartridges were essential accessories of the I-STAT analyser and had no independent use. Reliance was placed on an earlier decision of the Hyderabad Bench of CESTAT in the appellant’s own case, where identical I-STAT cartridges and analysers were held classifiable under CTH 9027. It was argued that the cartridges form an integral part of the I-STAT system and cannot function independently, and therefore must be classified along with the analyser. The appellant also raised the issue of limitation, submitting that the show cause notice was issued beyond the normal period and that there was no suppression or misdeclaration.
