SOUTH DELHI CANCER DETECTION AND Vs. C.C.

JUDGEMENT

(1.) THESE are four appeals filed by the above appellants with reference to the common impugned order involving common issues and therefore they are taken together and are being disposed of by this common order.

(2.) THE facts of the case in brief are that the appellants M/s. South Delhi Cancer Detection and Research Institute which is a unit of M/s ADS Diagnostic Ltd., B -22, Kailash Colony, New Delhi, according to the Department, had imported one CT (Computerised Tomography) Scanner and one Ultrasound Scanner along with accessories and spares duty free under the provision of Customs Notification No. 279/83, dated 30 -9 -1983 and that the appellants M/s. South Delhi Cancer Detection and Research Institute had not fulfilled the post importation condition of providing free treatment on an average to atleast 40% of its total outdoor patients as stipulated in the aforesaid notification. Accordingly, the matter was adjudicated by the Commissioner who has ordered confiscation of CT Scanner Hitachi Model CT -HSF and Ultrasound Scanner Model EU B -240 along with accessories and spares under Section lll(O) of the Customs Act, 1962 with an option to redeem the Machines on payment of redemption fine of Rs. 40 lacs under Section 125(1) of the Act within two months from the date of the order. Besides this, the Commissioner has imposed a personal penalty of Rs. 10 lacs under Section 112(b) of the Act on the appellant M/s. South Delhi Cancer Detection and Research Institute in addition imposed penalty of Rs. 5 lacs each on appellants Dr. Arjun Dev Sehgal, Chairman and Managing Director, and Dr. (Mrs.) Varsha Sehgal, Director under Section 112(b) of the Customs Act. He also imposed a penalty of Rs. 2 lacs on appellant Shri Rajeev Sehgal, General Manager of the appellant M/s. ADS Diagnostic Ltd. under Section 112(b) of the Customs Act. The stay order as well as the impugned order passed by the Commissioner has been challenged by the parties by way of writ petition before the Delhi High Court and the Delhi High Court as per its order dated 6 -2 -1996 ordered that pre -deposit in terms of the said order of the Tribunal is extended by two weeks and further clarified that in case the payment is made in terms of this order the machines in question would not be confiscated till the hearing of the appeal by CEGAT. Further, it was made clear that the (petitioner) appellants would not in any manner transfer, sell or encumber the machines.

(3.) SHRI M. Chandrashekharan, learned Senior Advocate accompanied by Shri Pradeep Jain, learned Advocate submitted that the appellants have imported one CT Scanner and one Ultrasound Scanner along with accessories and spares in the year 1986 and they are entitled to benefit of exemption in terms of Notification No. 279/83 -Cus., dated 30 -94983. Referring to the said notification, he drew our attention to the relevant portion in Clause 3 of the said table which states that "All such hospitals which may be certified by the said Ministry of Health and Family Welfare, in each case, to be run for providing medical, surgical or diagnostic treatment not only without any distinction of caste, creed, race, religion or language but also, -