Hemant Surgical Industries Ltd. Vs Union of India (Bombay High Court)
Bombay High Court held that it is not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the each and every query raised. Once query is raised and replied, it follows that query was subject matter of consideration of AO while completing assessment.
Facts- It is contended that the import of “Used Critical Care Medical Equipment” has been prohibited under the policy condition and the provisions laid down for the import of “Old and Used Medical Equipment” under Rule 12(6) and ‘Basel No. B-1110’ of Schedule VI of the said Rules. Therefore, it is alleged that the petitioner has violated the policy condition laid down under Schedule VI of the said Rules by importing the “used medical equipment”. Petitioner was therefore, called upon to show cause as to why the said goods should not be confiscated u/s. 111 (d) of the Customs Act, 1962 and penalty u/s. 112(a)(i) of the Act should not be imposed.
Post considering reply from the petitioner, respondent issued the impugned order and this petition came to be filed thereafter.
Conclusion- Held that once a query is raised during the assessment proceedings and assessee has replied to it, it follows that the query was subject matter of consideration of Assessing Officer while completing the assessment and same is deemed to have been accepted. The Court also held that it is not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the each and every query raised. Therefore, since there is no discussion or finding on the issue of hazardous waste in the impugned order, respondent no.3 should be taken as having accepted petitioner’s explanation.
