Secure Diagnostics Private Limited Vs Principal Commissioner (Customs) (CESTAT Delhi)
The appeals were filed by the importer company and its two directors challenging an order passed by the Principal Commissioner. The dispute concerned the classification of imported Food Testing Kits and the importer’s eligibility for the benefit of exemption Notification No. 50/2017-Cus dated 30.06.2017. The Revenue classified the goods under Customs Tariff Item (CTI) 3822 00 90, whereas the importer had classified them under CTI 3822 00 19 and claimed the exemption benefit.
Before the Tribunal, both sides acknowledged that identical issues had already been decided by the Tribunal in earlier cases in favour of the Revenue. The appellants, therefore, restricted their challenge to the invocation of the extended period of limitation and the penalties imposed on the importer and its directors.
The Tribunal noted the Principal Commissioner’s finding that the importer had described most of the imported goods in the Bills of Entry as “ELISA Test kits for diagnostic use only.” The Commissioner found that this description was added to claim the exemption benefit even though the products were actually food testing kits. Statements of the company’s director showed that the kits were used to detect fungal toxins, allergens, veterinary drug residues, pesticides, and similar substances in food items such as cereals, grains, milk, honey, seafood, and meat. It was also admitted that the kits were exclusively used for testing food matrices and were not used for human or animal diagnosis.
