Import of Second Hand Medical Devices having Minimum Residual Life of 5 Years or more not E-Waste: CESTAT quashes Confiscation [Read Order]

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) quashed confiscation and held that the import of second-hand medical devices having minimum residual life of 5 years or more not e-waste.

The Appellant – Nano Hospitals Pvt Ltd is a 100 bed multi-specialty hospital, with specialization in cardiology, cardio thoracic surgery, etc. The Deputy Commissioner passed the order, wherein it was observed that the subject goods imported are used Critical Care Equipment meant for re-use, which are specifically covered under Basel No. B1110 of Schedule VI of the Hazardous and Other Waste Management Rules, 2016 and the same are prohibited for import read with Rule 12(6).

Accordingly, the Deputy Commissioner ordered for confiscation of the impugned goods valued at Rs.5,62,961/- under section 111(d) of Customs Act read with Hazardous and Other Waste Management Rules, 2016 and ordered for 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 has also imposed penalty of Rs.20,000/- on the appellant/importer under section 112(a) of the Customs Act, 1962.

The counsel for the appellant submitted that the imported goods were not scrap and were medical devices/machines having minimum residual life of 5 years or more, as certified by the Chartered Engineer and thus, these were not e-waste/hazardous waste. The supplier of the goods in the invoice dt.29.10.2021 has also certified that the goods in question are in good working condition. Further, the value of the imported goods is not ‘nil’ or ‘zero’ or anything near to it.

A Single-Member Bench comprising Anil Choudhary, Judicial Member observed that “Having considered the rival contentions, I find that admittedly, the goods – used medical devices, were found to be in good working condition having minimum residual life of 5 years or more as certified by the Chartered Engineer. Accordingly, I hold that in view of such admitted facts, the goods under import do not qualify in the definition of ‘waste’ as defined under Rule 3(38) of Hazardous and Other Waste Management Rules, 2016.”

To Read the full text of the Order CLICK HERE

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