TMI Blog2001 (1) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the proposed action is either impermissible in law or unwarranted on facts. There is in that view no justification for this Court to intervene at this stage and short circuit the process set in motion by the respondents in exercise of the statutory powers vested in them. 2. Counsel for the petitioner all the same argued that the notices were without jurisdiction, inasmuch as Notification No. 64/88 issued under Section 5 of the Customs Act, by which hospital equipments, apparatus and appliances including spare parts and accessories thereof were exempted from the payment of customs duty upon their import from outside the Country had been repealed by a notification dated 1st of March 1994 without making any provision for recovery of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule", so that, after that rule has been omitted, no prosecution in respect of that contravention can be instituted. He conceded the possibility that, if a prosecution had already been started while Rule 132A was in force, that prosecution might have been competently continued. Once the Rule was omitted altogether, no new proceeding by way of prosecution could be initiated even though it might be in respect of an offence committed earlier during the period that the rule was in force. We are inclined to agree with the submission of Mr. Sen that the language contained in clause 2 of the Defense of India (Amendment) Rules, 1965 can only afford protection to action already taken while the rule was in force, but cannot justify initiation of a new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndition subject to which the import of equipment was exempted from customs duty, but the source of power to recover the duty is relatable not to the repealed notification but to the provisions of the Customs Act. The import of equipment in terms of Notification 64/88 was subject among others to the condition that the hospitals importing the equipment provide medical, surgical or diagnostic treatment without any distinction of caste, creed, race, religion or language to atleast 40% of all outdoor patients belonging to families with an income of less than Rs. 500/- per month. The exemption was subject to the further condition that the hospital provides treatment at reasonable charges even to patients other than those exempted from any payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the petitioners would have been liable to pay but for the exemption certificate secured by them. The power to recover duty thus does not flow from the notification so as to render any such recovery proceedings incompetent only because of the repeal of the same. The only consequence flowing from the repeal of the notification is that future imports even when made by Hospitals, who may otherwise have been eligible under the repealed notification will not be entitled to any such exemption. 7. It was lastly contended that the show cause notice issued in WP No. 3740/2001 was not preceded by an order cancelling the exemption certificate granted in favour of the petitioner. It was submitted that since recall of any such certificate was esse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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