KALPAVRUKSHA CHARITABLE TRUST Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the petitioner challenges a decision dated 23-9-1997 of Respondent No. 2 and a demand notice issued by Respondent No. 4 on 28-10-1997.

(2.) The contention raised before us by Mr. Ingale, appearing for the petitioner, is that the impugned decision is ex facie illegal inasmuch as the Customs Notification No. 64/88, dated 1-3-1988, issued under Section 25(1) of the Customs Act, 1962 was fully complied with. The second respondent failed to consider that the petitioner is a Trust. It is a charitable Trust running a medical diagnostic centre. There is no question of indoor patient treatment facility in the diagnostic centre. The outdoor patients referred for free treatment to the petitioner-Trust at its centre by the Civil Hospital or any other hospital in the locality were indeed provided treatment free of charge. As per the prescribed norms, some patients have been charged nominally. The Charity Commissioner of the State was satisfied that the petitioner is indeed rendering a public service. The diagnostic centre is administered purely on charitable grounds. It is running in losses.

(3.) In any event, it is submitted that the terms and conditions of the Notification having been complied with, the State Medical Health Authorities satisfying themselves that the petitioner is utilising imported equipments for the diagnostic centre, then, the demand cannot be sustained.