INYS MEDICAL RESEARCH Vs. COMMISSIONER OF CUSTOMS,

JUDGEMENT

(1.) This appeal arises out of and is directed against the Order -in -Original dated 7.8.2000 passed by the Commissioner of Customs Bangalore.

(2.) Issue relates to denial of benefit of exemption in terms of Notification No 64/88 Cus dated 1.3.88. The appellant society had imported four medical equipments claiming exemption from Customs duty under Notification No. 64/88 Customs dated 1.8.88. According to the department, the appellant society had failed to satisfy the post -importation conditions of Notification No. 64/88 Cus dated 1.3.88 with regard to providing free treatment to the poor out -patients as well as in -patients. Further it equipments at Manav Charitable Hospital, Bangalore or removed the same from the premises of the Research Society to the premises of Manav Charitable Hospital, Bangalore and brought back to the appellant society and also unauthorisedly allowed the said hospital to use the said equipment to treat the patients other than the appellant Research Society patients. Accordingly, a Show -cause notice dated 7.2.2000 has been issued to the appellants as to why "(a) The benefit of exemption of duty under Customs Notification No. 64/88 Cus dt 1.3.88 should not be denied in respect of the medical equipments valued at Rs 15,72,379/ - mentioned at para 3 supra (except S1 No.1 which has been imported through ACC Chennai) and the Customs duty amounting to Rs. 21,58,681/ - (Rupees Twenty one Lakhs Fifty Eight Thousand Six Hundred Eighty one only) equal to the duty foregone on the said medical equipments, imported through ACC, Bangalore, should not be demanded under Section 28 (i) of the Customs Act, 1962.

(3.) Show -cause notice was duly answered by the appellants denying the charges. The Commissioner who adjudicated the proceedings negatived the submissions made by the party confirming the demand. He passed the following order: