Import Of Second Hand Medical Devices Having Minimum Residual Life Of 5 Years Or More Are Not E-Waste/Hazardous Waste: CESTAT
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that used medical devices with a minimum residual life of 5 years or more are not e-waste or hazardous waste.The bench of Anil Choudhary (Judicial Member), while quashing the confiscation and penalty order on imported used medical devices, held that the goods—used medical devices—were found to be...
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that used medical devices with a minimum residual life of 5 years or more are not e-waste or hazardous waste.
The bench of Anil Choudhary (Judicial Member), while quashing the confiscation and penalty order on imported used medical devices, held that the goods—used medical devices—were found to be in good working condition, having a minimum residual life of 5 years or more as certified by the Chartered Engineer. The bench noted that the goods under import do not qualify under the definition of 'waste' as defined under Rule 3(38) of the Hazardous and Other Waste Management Rules, 2016.
The appellant/assessee, Nano Hospitals, is a 100-bed multi-specialty hospital with specializations in cardiology, cardiothoracic surgery, etc. The assessee filed a bill of entry through the Customs House Broker seeking clearance of imported goods (second-hand or used), viz., Puritan Bennett 7200 series ventilators, Drager Medical Babylag 2000 Neonatal Ventilators, Fresenius Medical 5008 Cordiax Dialysis Machines, and Taema Alys Ventilators.
The Deputy Commissioner observed that the subject goods imported are used critical care equipment meant for re-use, which is specifically covered under the Hazardous and Other Waste Management Rules, 2016 and is prohibited for import under Rule 12(6). The Deputy Commissioner ordered the confiscation of the impugned goods valued at Rs. 5,62,961 under Section 111(d) of the Customs Act read with the Hazardous and Other Waste Management Rules, 2016 and ordered the re-export of the goods to the supplier at the cost of the importer within 30 days from the date of receipt of the order. The adjudicating authority imposed a penalty of Rs. 20,000 on the importer under Section 112(a) of the Customs Act, 1962.
The assessee contended that the Chartered Engineer has certified that the imported goods have a minimum residual life of 5 years or more and are not e-waste or hazardous waste.
The tribunal noted that the adjudicating authority lacks jurisdiction to pass the order, as no SCN was served in accordance with Section 124 of the Customs Act.
The tribunal held that the appellant shall be entitled to consequential benefits and relief, including the release of the goods for home consumption on payment of applicable duty. The appellant shall not be liable for any demurrage and other port charges for the delay in clearance, which is wholly attributable to Revenue.
Counsel For Appellant: L.V. Rao
Counsel For Respondent: M. Anukathir Surya
Case Title: Nano Hospitals Pvt. Ltd. Versus Principal Commissioner of Customs Hyderabad - Customs
Case No.: Customs Appeal No. 30218 of 2023