TMI Blog2008 (5) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... of the order dated 9th December 1997 issued by the Director General Health Services, New Delhi. The facts of the case are as under: 3. The appellant herein, is a private limited company established for the purpose of conducting diagnostic tests and treating patients with specific Andrological problems. On 1st March 1988, a Notification was issued by the Government of India whereby medical equipment imported for specified purposes, was exempted from the payment of customs duty. Taking advantage of the aforesaid Notification, the appellant got sanction to import four machines (though only three were imported) and also furnished the necessary documents to the authorities. Respondent No.2, the Director, Medical Education submitted a report to respondent No.3, Secretary to the Government, Health, Medical Family Welfare Department, Govt. of A.P., intimating that he had conducted an inspection of the appellant's hospital with respect to the use of the imported equipment and the free services that were to be provided to the poor in accordance with the terms of the exemption Notification. Taking note of the report aforesaid, respondent No.3 forwarded the recommendation to respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant was still pending decision, it would be appropriate that a direction be issued for a decision in that matter. He has also submitted that from the impugned judgment it appeared that the exemption granted to the appellant had been cancelled due to the following reasons: (1) that the data with respect to the use of the "Hand Held Recording Doppler" had not been supplied, (2) that the data pertaining to the OPD/IPD cases had not been supplied,(3) free OPD for one equipment had been found to be less than 40% for one year and (4) that information furnished by the institute did not clarify the OPD/IPD free facilities, that were required to be given to those whose income was less than Rs.500/- per month and the information required had not been furnished in the prescribed format. He has pleaded that as per the information given to the respondents, the Hand Held Recording Doppler had not been imported and as far as point Nos. 2 and 3 are concerned, there was only a marginal deviation with respect to the facilities provided to the poorer sections of the population and the required information had, in fact, been supplied to the respondents as per their direction. He has in this conne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the present case as this provision deals with the confiscation of goods, which is not the case before us. 7 . On the contrary, we are of the opinion that the appellant's general conduct has been most unsatisfactory, as despite being called upon to furnish specific details time and again, it had not done so. We have seen the information furnished by the appellant on 20th July 1997, a copy appended as annexure P4 to the SLP Paper Book. We find that it does not even remotely fulfill the requirement as per proforma that had been laid down in the Notification dated 10th August 1993. We have no doubt that having imported medical equipment on concessional terms, it was incumbent on the appellant to have scrupulously observed the conditions of the import and to follow the guidelines designed to ensure that the equipment was being properly utilized. In Mediwell Hospital Health Care's case (supra) this is was what the Court had to say : "The competent authority, therefore, should continue to be vigilant and check whether the undertakings given by the applicants are being duly complied with after getting the benefit of the exemption notification and importing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved thus: "Learned counsel for the respondent has next urged that looking to the total picture of the free treatment provided by the Centre, it is to be noticed that shortfall in providing free treatment is marginal. The percentage of persons provided free treatment cannot be precise. During a certain period, it may be a little less or a little higher. He has also drawn our attention to a chart prepared by the respondent and filed with an affidavit before CEGAT, showing that the treatment provided to outdoor patients is 39.8 percent and instead of 10 cent indoor patients it is 8.9. per cent. In connection with this submission, it may be observed that this aspect of the matter has been considered by the Commissioner as well as CEGAT in some details and ultimately it has been found that there was a shortfall which is also not disputed by the respondent. A perusal of the condition in the notification indicates that on an average, at least 40 per cent of all outdoor patients should be provided free treatment. It is, thus, at least 40 per cent or maybe above. It is submitted that the condition nowhere indicates that within what period the prescribed percentage is to be achieved. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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