Charitable hospital import benefit retained where only a nominal registration fee was charged, with penalty pre-deposit waived.

A charitable hospital importing a CT scanner claimed the benefit of Notification No. 64/88 on the basis that it provided free treatment and charged outpatients only a nominal registration fee. The note records a prima facie view that such a small collection did not, by itself, negate the notification benefit where free treatment was otherwise available. On that footing, pre-deposit of the penalty under Section 129E of the Customs Act was waived and recovery of the penalty was stayed pending appeal.

---

---

Issues: Whether pre-deposit of the penalty demanded under Section 129E of the Customs Act, 1962 should be waived and recovery stayed during the pendency of the appeal, in view of the appellant's claim to the benefit of Notification No. 64/88 for import of a CT scanner by a charitable hospital.

Analysis: The appellant claimed that no charges were collected from outpatients for treatment, except a nominal registration fee of Rs. 2, and relied on the position that such a small collection would not, by itself, defeat the benefit of the concessional notification where free treatment was otherwise provided. The order noted the earlier prima facie view that collection of a small registration amount did not necessarily deprive the institution of the notification benefit.

Outcome: The deposit of the penalty was waived and recovery of the penalty was stayed during the pendency of the appeal.

---