Indoor nursing home facilities can qualify as a hospital for import policy entitlement and clearance of medical equipment.

A private nursing home with indoor treatment facilities was treated as a hospital for import policy purposes, so it could import medical and allied instruments for its own use within the prescribed value limit. The policy entry did not require Central or State Government recognition for that category, and the imported microscope and incubator were therefore entitled to clearance. Separately, where the relevant policy entry applied to hospitals recognised by government, a State Government certificate was treated as sufficient recognition. The objection to import, as well as the confiscation and redemption fine, was unsustainable.

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Issues: Whether a private nursing home with indoor facilities could be treated as a hospital for the purpose of import entitlement under the Import Policy, and whether the State Government certificate amounted to recognition for import under Appendix 6 Item 5.

Analysis: Appendix 6 Item 20(1) permitted hospitals and medical institutions to import medical and allied instruments and appliances for their own use without requiring recognition by the Central or State Government, and the imported goods were within the prescribed value limit. A nursing home with indoor treatment facilities was held to fall within the expression "hospital". Independently, Appendix 6 Item 5 applied to hospitals recognised by the Central or State Government, and the State Government certificate was treated as sufficient recognition for the purpose of the policy. The objection to import was therefore unsustainable.

Conclusion: The importer was entitled to clearance of the microscope and incubator, and the confiscation and redemption fine could not be sustained.

Final Conclusion: The appeal succeeded and the import was held permissible under the relevant policy entry, resulting in setting aside of the confiscation and the consequential fine.

Ratio Decidendi: A nursing home with indoor facilities may qualify as a hospital for import policy purposes, and where the policy does not require governmental recognition for the relevant entry, import entitlement cannot be denied on that ground.

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