Free-patient-treatment exemption under customs notification supported waiver of pre-deposit where compliance was broadly shown over the relevant period.

Eligibility for exemption under Notification No. 64/88-Cus. depended on meeting the prescribed free-patient-treatment condition generally throughout the relevant period. The record showed free treatment above 40% in most years, with any shortfall limited to only a couple of years, and the later period could not ordinarily cure an earlier deficiency. On those facts, the applicant established a strong prima facie case for interim relief and was granted waiver of pre-deposit of the entire duty and penalty.

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Issues: Whether the applicant was entitled to waiver of pre-deposit of duty and penalty in a dispute concerning eligibility to the benefit of Notification No. 64/88-Cus. dated 1-3-88 on the basis of the percentage of free patient treatment.

Analysis: The applicant had imported medical equipment and claimed exemption under the notification. The record showed that in most of the relevant years the percentage of free treatment exceeded 40%, and the shortfall was confined to only a couple of years. The governing principle applied was that the condition in the notification was to be satisfied generally throughout the period and a later or isolated period could not ordinarily be used to cure a deficiency. On the facts, the applicant established a strong prima facie case for interim relief.

Conclusion: The applicant was entitled to waiver of pre-deposit of the entire duty and penalty and the stay application was allowed.

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