Duty exemption for specialised hospital equipment upheld where medical instruments were essential for diagnosis and teaching.

Specialised medical equipment imported for a medical college and hospital qualified for duty exemption under Notification No. 63/88 because the goods were shown to be essential hospital equipment used for diagnosis and teaching. The Tribunal treated the Image Intensifier T.V. System and related medical items as specialised instruments, not general-purpose goods, and relied on their technical function, supporting certificates, and the broad explanation of "hospital" in the notification. It also accepted that medical education and hospital practice are closely linked, so equipment used for both teaching and treatment can fall within the exemption. The Revenue's challenge was rejected and the exemption was upheld.

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Issues: Whether the imported image intensifier TV system and accessories used by a medical college hospital were eligible for exemption under Notification No. 63/88 as hospital equipment.

Analysis: The goods were found to be specialised medical instruments used for detailed investigation, correct diagnosis, and teaching through radio diagnosis. The notification exempted equipment imported by specified hospitals where the equipment was not manufactured in India and was essential for running or maintenance of the hospital. The expression "hospital" in the notification was wide enough to include institutions rendering medical, surgical, or diagnostic treatment. On the facts, the medical college hospital and the college functioned as one integrated institution, and the equipment was used in the hospital for diagnosis and training.

Conclusion: The goods were covered by Notification No. 63/88 and exemption could not be denied; the Revenue's appeals failed.

Ratio Decidendi: Specialised diagnostic equipment used in an integrated medical college hospital for diagnosis and training qualifies as hospital equipment for exemption under a notification that includes institutions rendering diagnostic treatment within the meaning of hospital.

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