KASTURBA MEDICAL COLLEGE, REPRESENTED BY ITS DEAN DR. P.L.N. RAO AND OTHERS ETC. ETC. Vs. THE UNION OF INDIA (UOI) REPRESENTED BY SECRETARY MINISTRY OF HEALTH AND FAMILY WELFAIR AND OTHERS ETC. ETC.

JUDGEMENT

(1.) A large number of writ appeals emerge for collective consideration. Through these writ appeals, the Appellants and the Petitioners seek to assail an order dated 11.02.1999 (rendered by a learned Single Judge of this Court) disposing of WP Nos. 28186 -187/1996 (and other connected matters), wherein, the main case disposed of was titled as, Medical Relief Society of South Canara v. Union of India and Ors. For the same common purpose some writ petitions are also posted for hearing with the writ appeals.

(2.) THE controversy between the Appellants/Petitioners and the Respondents emerges, from a notification issued on 01.03.1988. The aforesaid notification dated 01.03.1988, was issued by the Central Government under Section 25 of the Customs Act, 1962. Under the aforesaid notification, four categories of hospitals were permitted to import medical equipment/machinery, without payment of customs duty, on the condition that they would provide free medical assistance, to persons whose monthly family income was less than Rs. 500/ -. The aforesaid notification contemplated four categories of beneficiaries. The beneficiaries under the notification have been appropriately depicted in the following manner by the learned Single Judge; in the impugned order dated 11.02.1999: The table below the notification classifies hospitals in four different categories. Category -1 deals with hospitals certified by the Ministry of Health and Family welfare as being run or substantially aided by such Charitable organisations as may be approved front time to time by the said Ministry. Category -2 comprises hospitals, which may be certified by the Ministry of Health and Family Welfare in each case to be run or providing medical, surgical or diagnostic treatment without any distinction of caste, creed, race, religion or language and free on an average to 40% of the outdoor patients and all indoor patients with a family income of less then Rs. 500/ - per month. In Category -3 fall hospitals which the Ministry of Health and Family Welfare may having regard to the treatment available therein or the geographical situation thereof or the class of patients for whom such treatment is provided either generally or in each case certify that the hospital even though it makes a charge for the said treatment is nevertheless run on No. profit basis and is deserving of exemption from payment of duty on the import of hospital equipment, provided that the equipment so imported is received by way of a free gift from a donor abroad or purchased out of the donations received in foreign exchange. The 4th and the only other category comprises hospitals, which are in the process of being established and in respect of which the Ministry of Health and Family Welfare is of the opinion that there is an appropriate Programme for establishment of the hospital, that there are sufficient funds and other resources worked for such establishment and that such hospital would be in a position to start functioning within a period of one year and would be relatable to a hospital specified in Categories 1, 2 or 3 referred to above. All the Appellants and writ Petitioners in the instant bunch of cases fall under category -2 depicted in the notification dated 01.03.1988.

(3.) WHEN the instant writ appeals were taken up for consideration, learned Counsel for the Appellants/Petitioners invited our attention to the order passed by the Supreme Court on 24.10.2007 in Civil Appeal No. 7284/2005 (Sir. Gangaram Trust Society and Anr. v. Union of India and Ors.). The aforesaid order is being extracted hereunder; Prima facie, we were of the view that the Director General Health services (for short 'DGHS') had withdrawn/canceled the exemption certificate given to the Appellants from payment of customs duty on import of medical instruments in terms of Notification No. 64/88 -Cus. Dated 1st March, 1988 in violation of the principles of natural justice. Mr. Amrendra Sharan, learned Additional Solicitor General, after taking instructions, states that the impugned order of the High Court as well as DGHS be set aside and the case be remitted back to the DGHS to pass a fresh order in accordance with law after affording due opportunity to the Appellants to put forth their point of view. That the Appellants shall be supplied a copy of the inspection report carried out on 17th & 18th January. 2001. In view of the statement made by the learned Additional Solicitor General, these appeals are allowed; impugned orders of the High court and DGHS are set aside and the case is remitted back to the DGHS to pass a fresh order in accordance with law after affording due opportunity to the Appellants to put forth their case. All contentions are left open. It would have been convenient for us to dispose of the instant bunch of appeals (and connected writ petitions) in terms of the order passed by the Supreme Court, inasmuch as, the action to be taken against the Appellants (and the Petitioners) herein, was bound to be preceded by procedure, contemplated under the rules of natural justice. This was the common prayer of the learned Counsel for the rival parties.