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TMI Blog1999 (11) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... he notification dated 1-3-1988 bearing No. 64/88. The Director General of Health Services issued a certificate certifying that the items mentioned are exempt from payment of customs duty in terms of the Ministry of Finance Notification dated 1-3-1988. The appellant, after import, is using the equipment in terms of the notification. 3.Respondent No. 2 The Appraiser of Customs visited the hospital on 4-3-1999 and seized the equipments being used by the appellant. The only reason given in the mahazar drawn on the date of seizure is that the appellant failed to fulfill the conditions in terms of the Notification dated 1-3-1988. In the mahazar, the respondent No. 2. stated that the investigation conducted by the Customs Department as per the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consequential act on account of cancellation of the certificate granted in favour of his client. He stated that during the pendency of the certificate, without cancellation, no coercive steps could be taken. He contended that the learned Judge, in the circumstances, committed an error. Secondly he argued that in identical circumstances, the very respondents in W.P. 20392/98 has accepted the proposition that without withdrawing the certificate already issued, no steps could be taken by the respondents. It is his contention that the respondents cannot take different stands in two identical case in identical circumstances. In conclusion he wanted the Appellate Court to set aside the order in the light of these two submissions. 7.Per contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llation of certificate as on date. In these circumstances, we are clearly of the view that without withdrawing or cancelling the certificate already issued, the present seizure cannot stand. Therefore we hold that the seizure effected by the respondents is not in accordance with law. The impugned order of the learned Single Judge, in these circumstances, requires to be set aside and accordingly the same is set aside. 9.Sri Veerendra Shah, learned Counsel for the Department however invited our attention to the recommendations of the Rosha Committee to contend that the respondents were justified in their action. We have gone through the document No. 2 dated 15-7-1998 issued by the Member Secretary, Central Excise and Customs, Bangalore. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would enable the appellant to import the equipment without payment of customs duty but at the same time we would like to observe that the very Notification granting exemption must be construed to cast continuing obligation on the part of all those who obtained the certificate from the appropriate authority and on the basis of that to have imported equipments without payment of customs duty to give free treatment atleast to 40% of the out door patients as well as would give free treatment to all the indoor patients belonging to the families with an income of less than Rs. 500/- per month. The competent authority, therefore, should continue to be vigilant and check whether the undertakings given by the applicants are being duly complied with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it would be fully open to the authority to ask the person to avail of the benefit of exemption to pay the duty payable in respect of the equipment which have been imported without payment of customs duty. A careful reading of the said judgment shows that in the event of the violation of the continuing obligation, the authority who had issued the certificate, has the right to demand the payment of customs duty. Unfortunately, in the case on hand, the said authority has neither issued any notice of violation nor has administered the customs duty for violation of the exemption conditions. In these circumstances, we are of the view that the respondents have committed an error in seizing the equipments without demanding the customs duty for vio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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