Transasia Bio-Medicals Ltd. Vs Union of India (Madras High Court)
Madras High Court held that the goods imported, even though exempted from basic customs duty, may still be subject to levy of additional duty under the respective enactments. Accordingly, additional duty of 4% leviable on import of Hemato Analyser in terms of notification 19/2005-Cus.
Facts- Petitioner is a public limited company engaged in the business of import and manufacture of medical equipments and sale of such equipments in India. Petitioner had imported and warehoused one consignment of Hemato Analyser with standard accessories and filed bills of entry. Respondent No.2, i.e. Commissioner of Customs assessed the bills of entry and demanded additional duty at 4% in terms of Notification No.19/2005-Cus dated 01.03.2005 issued by respondent No.1, i.e. Union of India.
Respondent No.2 demanded additional duty on the ground that as per the Notification No.19/2005-Cus dated 01.03.2005, the goods covered under the exemption Notification No.24/2005-Cus dated 01.03.2005 are liable to pay additional duty at the rate of 4%.
According to petitioner and that is the only case that when the Customs Tariff and imported goods says rate of duty to be free, the question of exempting it u/s. 25 of the Customs Act does not arise. Therefore, the Notification No.24/2005 is bad in law.
