VINODHAGAN MEMORIAL HOSPITAL Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellants had imported one set of Hitachi Whole Body CT Scanner and accessories thereof and cleared the same under Bill of Entry dated 17.08.1992 without payment of duty in terms of Customs Notification No. 64/88 dated 01.03.1988. The clearance of the goods was obtained on the strength of Customs Duty Exemption Certificate (CDEC, or short) of the Director -General of Health Services (DGHS, for short).

(2.) THE above Notification had stipulated that hospitals certified by DGHS should provide medical, surgical or diagnostic treatment -

(3.) HEARD both sides. Learned Counsel submitted that, though DGHS who had issued CDEC to the appellants in respect of the medical equipment and subsequently withdrew the certificate, such withdrawal was set aside by the Hon'ble High Court of Madras in Writ Petition No. 13924 of 2001. He submitted that, following the decision already rendered in Apollo Hospitals Enterprises Ltd. v. Union of India : 2001 (133) E.L.T.58 (Mad.), the Hon'ble Court remanded the matter to DGHS for its reconsideration. Learned Counsel contended that, where CDEC issued by DGHS was in force, it was not open to the Customs authorities to demand duty on the medical equipment. Learned Counsel further submitted that, when DGHS had already recognised the appellants as a hospital, it was not open to the Customs authorities to hold that they were only a diagnostic centre/polyclinic. The Commissioner's finding that no specific register/record was maintained by the appellants was also challenged by Counsel who submitted that the Commissioner himself had found that they had furnished details of casualty register. According to learned Counsel, the Commissioner's order suffered from infirmities and hence requires to be set aside. It was particularly submitted that the quantum of penalty imposed by him on the appellants was too high.