ST. STEPHENS HOSPITAL Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellants herein imported (i) one Remote controlled X -Ray TV System with 90/45" and (ii) whole Body CT Scanner Model SCT 3000 Tx with accessories and spares from Japan vide Bill of entry dated 27 -8 -1990 and 27 -11 -1990 respectively against Customs Duty Exemption Certificates dated 28 -2 -1990 and 16 -11 -1990. The importers availed the benefit of exemption under Notification No. 64/88 -Cus., dated 1 -3 -1988 and cleared the goods duty free. At the time of import, they furnished an undertaking in writing to the Assistant Commissioner of Customs at the time of clearance to the effect that they shall furnish certificates evidencing installation of the imported hospital equipment and functioning of the hospital within a period of two years. Since such certificates from the prescribed authority namely DGHS or Ministry of Health and Family Welfare were not produced within the stipulated period, the Department issued show cause notice proposing recovery of duty of Rs. 36,91,763/ - for non -fulfilment of post import conditions of Notification No. 64/88 and proposing recovery of interest and imposition of penalty as the goods had become liable to confiscation.

(2.) THE Adjudicating Authority upheld the charges in the notice and confirmed duty demand together with interest and also imposed a penalty of Rs. 1 lakh on the appellants. Hence this appeal.

(3.) WE have heard Shri M. Chandrashekhran, learned Sr. Advocate and Shri M.P. Singh, learned DR. Notification No. 64/88 is reproduced below: