2004 (9) TMI 283 - AT - Customs

Summary

Issues:
1. Whether the benefit of Notification No. 64/88-Cus., dated 1-3-88 is available to the goods imported by M/s. Choithram Hospital & Research Centre.
2. Whether M/s. Choithram Hospital & Research Centre is entitled to the concessional rate of duty prescribed under Notification No. 138/88-Cus., dated 18-4-88.

Analysis:

Issue 1:
In the appeal filed by M/s. Choithram Hospital & Research Centre, the main contention was regarding the availability of the benefit of Notification No. 64/88-Cus. The hospital claimed that they imported medical equipment using funds received as gifts from donors abroad. However, the Commissioner had confirmed the demand of duty, confiscated the equipment, and imposed a penalty for not complying with the conditions of the Notification. The hospital argued that they met the conditions specified in Para 3 of the Notification, which exempts hospital equipment imported by hospitals certified to be run on a non-profit basis. The Tribunal observed that the hospital failed to fulfill the post-import conditions specified in Para 2 of the Notification, which required free treatment for a certain percentage of patients. As the hospital did not provide evidence of meeting these conditions, they were not eligible for the exemption under Notification No. 64/88-Cus.

Issue 2:
Regarding the alternative claim for the concessional rate of duty under Notification No. 138/88-Cus., the hospital failed to provide evidence of compliance with the conditions specified in the Notification. These conditions included payment by an Indian citizen residing abroad for a minimum period of one year, payment of customs duty from foreign exchange remitted into India, and producing evidence of compliance at the time of importation. As the hospital did not fulfill these conditions, they were deemed ineligible for the benefit of Notification No. 138/88-Cus. Consequently, the appeal was rejected by the Tribunal.

In conclusion, the Tribunal upheld the decision to deny the benefits of both Notification No. 64/88-Cus. and Notification No. 138/88-Cus. to M/s. Choithram Hospital & Research Centre due to non-compliance with the specified conditions in the notifications.