2004 (5) TMI 449 - AT - Customs

Summary

Issues:
1. Retention of file in the Bench based on Public Notice.
2. Stay application for waiver of duty amount and penalty related to imported Medical Equipments under Notification No. 64/68.
3. Compliance with terms of Notification regarding free treatment and bed reservation for patients with monthly income less than Rs. 500.
4. Validity of cancellation of certificate by DGHS and its impact on fulfilling Notification terms.
5. Requirement of pre-deposit based on Commissioner's findings and legal precedents.

Issue 1: Retention of file in the Bench based on Public Notice
The appellant, a charitable hospital, sought retention of the file in the Bench as per Public Notice No. 1/2001 due to its location within the jurisdiction. The Tribunal, in line with the Public Notice, permitted the retention of files for further hearing.

Issue 2: Stay application for waiver of duty amount and penalty
The appellant imported Medical Equipments under Notification No. 64/68, requiring free treatment for eligible patients. Despite providing free treatment to over 40% of patients, the DGHS cancelled their certificate. The Commissioner, noting non-compliance with Notification terms, confirmed the duty and penalty. The appellant sought waiver based on State Government's certification of compliance, arguing against pre-deposit due to completed formalities.

Issue 3: Compliance with terms of Notification
The Commissioner's findings highlighted lack of sufficient compliance with the Notification terms, leading to the direction for pre-deposit based on legal precedents. The Tribunal emphasized the cancellation of the certificate by DGHS, precluding consideration of compliance post-cancellation. The directive for pre-deposit of the duty amount within a specified timeline was given, with penalty waiver upon compliance.

Issue 4: Validity of cancellation of certificate by DGHS
The cancellation of the certificate by DGHS was a crucial factor impacting the Tribunal's decision on compliance with Notification terms. The Tribunal noted the absence of an appeal against the certificate cancellation, refraining from assessing its validity while emphasizing the impact on fulfilling Notification requirements.

Issue 5: Requirement of pre-deposit based on Commissioner's findings and legal precedents
The Tribunal, considering the Commissioner's findings and legal precedents, directed the appellant to pre-deposit the duty amount within a specified timeframe. Failure to comply would render the appeal liable for dismissal under the relevant legal provision. The penalty was waived upon deposit, with recovery stayed pending appeal disposal. Compliance report was scheduled for a future date to monitor adherence to the directive.