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TMI Blog2003 (2) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... of equipments Customs duty, involved 1. Life Saving Equipment - Aloka ultrasound scanner Model SSD - 630 and Standard Convex Sector Probe Model UST-934N 031317 dtd 13-9-91 6,42,640/- Imported through Madras A.C.C. 2. Coulter T890 with printer and its accessories 015672 dtd. 7-7-91 9,52,723/- 13,07,971/- 3. Lifescope 9 BSM 830 1K Advanced monitor 009111 dtd. 4-4-90 1,21,854/- 1,67,290/- 4. Treadmill - computer assisted system for Exercise 009112 dtd. 4-4-90 4,97,802/- 6,83,420/- 2. Consequent to certain enquiries, the officers found that the Society had transferred the imported equipment to an adjacent premises belonging to Manav Charitable Hospital (MCH for short) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng reserved 10% of the total beds for this purpose, as stipulated in the said Notfn. No. 64/88; (iii) The Research Society had unauthorisedly used the said medical equipments for treating the patients of MCH. Therefore, it appeared that the said medical equipments imported under Notfn. No. 64/88-Cus. by the Society totally valued at Rs.15,72,379/-(assessable value) were liable for confiscation, and the Customs Duty to the tune of Rs. 21,58,681/- (equal to duty foregone) was also liable to be recovered from the said Society under Section 28 of the Customs Act, 1962. The said Society were also liable for penalty under Section 114A of the Customs Act, 1962 and proceedings by issue of Show Cause Notice dt. 7-2-2000 wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and as laid down by Supreme Court in Mediwells case. 5. Accordingly, the matter was heard again and the present order was passed by the Commissioner reiterating the findings as regards the levy of duty of Rs. 21,58,681/- and similar penalties, interest orders, hence this appeal. 6. After hearing both sides and considering the material on record, it is found : - (a) The Society has stated that they had produced records maintained both by themselves as well as by MCH to the Customs Officials (Prev.) but they were informed by the officers that these records were not in the prescribed form. No findings on these records were arrived at by the ld. Commissioner and or the officers. The ld. Advocate has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ories of patients are to be treated at these hospitals as free indoor patients. The income criteria of these patients have been prescribed. The notification, as we read it, does not provide for the treatment to be restricted by using these machines only in the premises of the appellant who were permitted to import them. The notification only prescribes eligibility criteria for an importer and a consequential end-use after import. As regards the eligibility of the importer to get these imports under the notification, there is no doubt in the minds of the departmental officers who investigated the case and or the adjudicator. The dispute is only as regards the site at which these equipments were used viz., MCH premises adjacent to the importe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to receive free treatment in the Institute. That objective must be achieved at any cost, and the very authority who granted such certificate of exemption would ensure that the obligation imposed on the person availing of the exemption notification are being duly carried out and on being satisfied that the said obligation have not been discharged they can enforce realization of the Customs Duty from them." Based on the directions of the Apex Court in the case of Mediwell Hospital and Health Care Pvt Ltd. [1997 (89) E.L.T. 425 (S.C.)] concerning the very said Notification No. 64/88-Cus., wherein at Para 13 of the very said decision, after observing the objectives of the notification, the Apex Court had directed "coercive official action t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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