TMI Blog2016 (12) TMI 1503X X X X Extracts X X X X X X X X Extracts X X X X ..... ner itself - A conditional exemption is available and can be availed of on tendering proof of satisfaction of the terms and conditions thereof, else the exemption cannot be availed of. In the instant case, all the terms and conditions of the exemption Notification were made known and voluntarily accepted by the petitioner. It even executed a Bond and also submitted a Bank Guarantee and as noted by us hereinabove - Once being aware of the clear stipulations in the exemption Notification, but failing to satisfy them, the petitioner was not entitled to any exemption. The demand is rightfully raised and deserves to be confirmed. Petition dismissed - decided against petitioner. - Writ Petition No. 5728 of 1997, Civil Application No. 6180 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urely on charitable grounds. It is running in losses. 3. In any event, it is submitted that the terms and conditions of the Notification having been complied with, the State Medical Health Authorities satisfying themselves that the petitioner is utilising imported equipments for the diagnostic centre, then, the demand cannot be sustained. 4. On the other hand, the contesting respondents, relying on the statements made in the affidavit in reply, would submit that this is a clear case of violation of the terms and conditions on which the exemption can be granted or claimed. Once it is a conditional exemption, then, there is no escape from the demand. The writ petition should be dismissed. 5. For appreciating these contentions, we mus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e spares, namely, X Ray Tube from Japan and applied for grant of Customs Duty Exemption Certificate from the second respondent. The second respondent had insisted at the time of import for execution of a Bond favouring the President of India. The Bond was executed for the amount mentioned in the same on 481993. Annexure D is a copy of this Bond/Undertaking. When the petitioner imported the X Ray Tube (spare), it furnished a Bank Guarantee favouring the Department. 9. The petitioner states that all the terms and conditions of the exemption Notification were satisfied. In that regard, Mr. Ingale, appearing on behalf of the petitioner, emphasised that once the equipment is covered by the exemption Notification inasmuch as it is a hospital e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re parts and accessories thereof, but excluding consumable items, the import of which is approved either generally or in each case by the Government of India in the Ministry of Health and Family Welfare, or by the Directorate General of Health Services to the Government of India, as essential for use in any hospital specified in the Table below para 1 of the Notification. Then, there are terms and conditions which would envisage that the imported equipment/hospital equipment is required because it is not manufactured in India and that it is necessary for running or maintenance of the hospital. The Table points out as to how hospitals, as may be certified by the Ministry of Health and Family Welfare, to be run or substantially aided by chari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assistant Collector of Customs within a period of three months or such further time, as may be granted by him, the requisite documents. The authorities found that the hospital equipment was indeed installed. Thereafter, the relevant deeds and other particulars were called for. The office of the Deputy Director of Health Services, Kolhapur Circle, issued a certificate and which states that the institution provided diagnostic, preventive or curative care free to 2130 patients out of total out patients attendance in the year 19941995, which comes to more than 46%. Thereafter, what one finds is that the said certificate was forwarded to the Government of India (the second respondent). The communication to that effect is to be found at page 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an ₹ 500/per month, and keeping for this purpose 10% of the hospital beds reserved for such patients. On the own showing of the petitioner, it does not satisfy these conditions. It does not have any facility for treating indoor patients. There are no admissions against that category. Even the treatment provided, namely, the diagnostic treatment is not of the required percentage, as certified by the Director General. 14. To our mind, from a reading of the annexures to the writ petition it is apparent that the demand has been raised after a factual satisfaction. That satisfaction is based on inspection, scrutiny and verification of the records and documents provided by the petitioner itself. Once such is the basis for the demand and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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