2007 (2) TMI 412

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....on the strength of Customs Duty Exemption Certificate (CDEC, for short) of the Director-General of Health Services (DGHS, for short). 2. The above Notification had stipulated that hospitals certified by DGHS should provide medical, surgical or diagnostic treatment - (a)     Free, on an average, to at least 40% of all their outdoor patients; (b)     Free treatment to all indoor patients belonging to families with an income of less than Rs. 500/- per month and keeping for this purpose at least 10% of all the hospitals beds reserved for such patients; and (c)     At reasonable charges, either on the basis of the income of the patients concerned or otherwise, to patien....

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.... goods liable for confiscation, I impose a penalty of Rs. 9,00,000/- (Rupees Nine lakhs only) on the importers M/s. Vinodhagan Memorial Hospital Pvt. Ltd., under Section 112(a) of the Customs Act, 1962. 4. Heard both sides. Learned Counsel submitted that, though DGHS who had issued CDEC to the appellants in respect of the medical equipment and subsequently withdrew the certificate, such withdrawal was set aside by the Hon'ble High Court of Madras in Writ Petition No. 13924 of 2001. He submitted that, following the decision already rendered in Apollo Hospitals Enterprises Ltd. v. Union of India [2001 (133) E.L.T. 58 (Mad.)], the Hon'ble Court remanded the matter to DGHS for its reconsideration. Learned Counsel contended that, where C....

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....s long as CDEC issued by DGHS is in operation. It appears from the text of the Customs Notification that the provisions of this Notification are applicable to a hospital equipment, the import of which is approved by the DGHS as essential for use in hospital specified in the Table annexed to the Notification. As per S. No. 1 of the said Table, the hospital must be certified by the Ministry of Health and Family Welfare to be run or substantially aided by such charitable organisation as may be approved from time to time by the said Ministry. The conditions for the benefit of exemption were laid down under S. No. 2 of the said Table. It would follow that, by the mere reason of the hospital holding CDEC issued by DGHS, they cannot claim the bene....