2025-VIL-04-CESTAT-KOL-CU
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CUSTOMS CESTAT Cases

Customs - Classification of imported medical oxygen cylinders, Applicability of Gas Cylinder Rules, Limitation period for show cause notice – Appellant imported empty medical oxygen cylinders and accessories - Authorities reclassified the goods from the appellant's classification under CTH 90189099 (instruments / appliances used in medical sciences) to CTH 73110030 (containers for compressed / liquefied gases), resulting in a demand for differential duty. The authorities also alleged violation of the Gas Cylinder Rules, 2004/2016 and sought to confiscate the goods - Whether the imported medical oxygen cylinders are correctly classifiable under CTH 90189099 or CTH 73110030 - HELD - the impugned goods, namely, 'Semi welded steel high pressure cylinders' and 'Semi welded aluminium high pressure cylinders', both are attached with valves for supply of oxygen to patients during transportation - the description of the containers or cylinders under CTH 73110030 are followed by the words “compressed gas or liquefied gas”. Thus, CTH 73110030 deals with containers for carrying compressed or liquefied gases. However, the cylinders imported by the appellant are meant for carrying medical grade oxygen for life supporting purposes. They are meant for carrying liquefied gases in general - It is on record that the cylinders, after being filled with oxygen, are used in the ambulances for life saving purposes. It is immaterial whether the cylinders are made up of steel or aluminium. As long as they are fitted in ambulances and used to store and supply medical oxygen to patients during transportation, it is to be considered as a life supporting medical equipment - The imported medical oxygen cylinders, being intended for use in ambulances under the JSSK scheme to provide life support to patients, are more appropriately classifiable under CTH 90189099 as instruments/appliances used in medical sciences. This classification is supported by the fact that similar goods imported by the appellant at other ports were cleared under CTH 90189099 – the reclassification and the consequent demand for differential duty are set aside – The assessee appeal is allowed - Whether the confiscation of the goods for alleged violation of the Gas Cylinder Rules, 2004/2016 is sustainable - HELD - The Gas Cylinder Rules specifically exclude cylinders fitted in special transport vehicles like ambulances from its purview. Since the imported cylinders were meant to be fitted in ambulances, they are not subject to the requirements under the Gas Cylinder Rules. Accordingly, confiscation of the goods is set aside - Whether the show cause notice issued after a delay of 4 years from the date of import is legally sustainable - HELD - There was no suppression of information by the appellant, and the SCN issued after a delay of 4 years is legally unsustainable as per the decisions relied upon by the appellant. The demand confirmed on the basis of the extended period of limitation is set aside.
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