APOLLO HOSPITALS ENTERPRISES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Order of the Court is as follows :- THE petitioners have filed these writ petitions to quash the proceedings of the Director General of Health Services and for a mandamus directing the respondents not to give effect to the said proceedings.

(2.) THE petitioner hospital imported certain life saving medical equipments for the purpose of installing the same at their hospital to provide the latest medical facilities to the patients. Such imports were made by the petitioner taking advantage of the Customs Notification No. 64/88 dated 1-3-88 which granted the benefit of the Customs Duty exemption in respect of those equipments. As per the above notification, in order to claim the benefit of the exemption of Customs duty, the procedure prescribed by the Director General of Health Services, New Delhi is that the hospital should apply through the State Government and the Director of Medical Education of the State Government has to inspect the hospital and satisfy himself with regard to the compliance of the parameters laid down in notification No. 64/88. THEreafter the Secretary to Government, Health department of the State Government recommends the case of the petitioner to the ministry of Health, Department of Family Welfare, New Delhi . After considering the claim of the petitioner for the import of such life saving equipments and for exemption of the Customs duty thereof, it is for the Director General of Health Services (DGHS in short)to issue the certificate exempting the payment of Customs Duty (hereinafter called the CDEC ). Such certificate are to be produced before the Customs officials and the equipments will be released without the payment of Customs duty.

(3.) THE impugned proceedings in these writ petitions are of two kinds; one is cancellation of the Customs Duty Exemption Certificate already granted and the other is rejection of the application seeking the customs Duty Exemption Certificate. THE petitioners admittedly imported certain life saving equipments pursuant to the Customs Notification 64/88 whereunder the Government had granted the exemption of Customs Duty in respect of those equipments. THE case of the respondent is that the petitioners had not fulfilled the obligations specified under the said notification. When once the discharge of obligation specified under the said notification is a condition precedent for the grant of exemption, unless the petitioners establish that they fulfilled such conditions, they are not entitled for the exemption of customs Duty. Hence it is necessary to consider Clause 2 of the Table to the said notification and also whether the petitioners had not complied with the same.