1996 (11) TMI 119

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....nts imported by the applicants under Notification No. 64/88-Cus., dated 1-3-1988. 2. We have heard the stay application when Shri V. Sridharan, learned advocate appeared for the applicant. Shri K.K. Jha, SDR represented the respondent/Revenue. We have carefully considered the submissions made by both the sides. The Commissioner of Customs had denied the exemption on the ground that the conditions as mentioned in the table annexed to the said Notification, dated 1-3-1988 had not been fulfilled. He had referred to Para 2 of the table which is reproduced below :- "2. All such hospitals as may be certified by the said Ministry of Health and Family Welfare in each case, to be run for providing medical, surgical or diagnostic trea....

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....ated that in no case a duty of more than 40% could be demanded even if all the other arguments go against the appellants. In view of unconditional exemption under Notification No. 65/88-Cus., dated 1-3-1988 [that] case the duty liability would have come to the amount fixed by the learned Commissioner. According to them their duty liability will come to Rs. 20 lacs only. There was no ground for imposition of penalty, as all along they were under the bona fide belief that the approval by the Director General of Health Services meets the requirements of the Notification. 4. In reply Shri K.K. Jha, SDR, stated that the approval as mentioned in the opening para of the Notification No. 64/88-Cus. was for the import of the equipments, appa....

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.... that the approval at the time of the import by the Director General of Health Services will not meet requirements of the Para 2 of the table. 6. The applicants have pleaded financial hardship. It is however seen that during the year ended 31-3-1995 they had earned a profit of over Rs. 13 lacs. For the period ending March, 1996 the applicants have earned a profit of Rs. 19,58,042.64. 7. The learned advocate had also taken the plea of limitation. It is his contention that there was no suppression and all along the department was aware of their activities. A certificate from the Director General of Health Services was appended on the proforma invoice. The Commissioner had dealt with this aspect in his order and on this prima f....