Hospital equipment exemption can apply to imports by a non-hospital entity when prescribed certificates are furnished.

Hospital equipment imported by a person other than the hospital remained eligible for exemption under Sl. No. 362 of Notification No. 21/2002-Customs read with Condition No. 77, provided the prescribed certificate was produced and the hospital head certified that the equipment was meant for use in the hospital and was essential for its running or maintenance. The reference to the "importer" in the condition showed that import by a non-hospital entity was not excluded. The notification did not support a restrictive reading, and satisfaction of the documentary conditions preserved the exemption.

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Issues: Whether hospital equipment imported by a person other than the hospital was eligible for exemption under Sl. No. 362 of Notification No. 21/2002-Customs read with Condition No. 77 when the equipment was meant for use in specified hospitals.

Analysis: The exemption entry covered hospital equipment for use in specified hospitals, and Condition No. 77 required that the importer produce the prescribed certificate and that the head of the hospital certify that the equipment was meant for use in the hospital and was essential for its running or maintenance. The use of the term "importer" in clause (b) indicated that import by a person other than the hospital was not excluded. The notification did not support the restrictive reading urged by the Revenue, and the certificates required by the condition had been furnished.

Conclusion: The exemption was available even when the equipment was imported by a person other than the hospital, provided the prescribed conditions were satisfied. The Revenue's appeals were therefore not sustainable.

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