2015 (4) TMI 238 - SC - Customs

Benefits of Notification No.64 /88 dated 01.03.1998 - import of hospital equipments - Non fulfillment of conditions of Notification - Held that - Appellants had not complied with those conditions, a show cause notice was issued by the Commissioner as to why the duty be not charged and penalty be imposed. It resulted into passing of an order dated 10.12.1999 by the Commissioner confirming the demand of duty of ₹ 16 ,16,089 /- and imposing penalty of equivalent amount on appellant No.1 as well as ₹ 1 lakh on appellant No.2 . The appellants challenged this order by filing two appeals before the Customs, Excise & Gold (Control) Appellate Tribunal. The Tribunal vide the impugned judgment dated 16.04.2003 upheld the finding of the Commissioner. However, insofar as fine is concerned, the same is reduced to ₹ 10 lakhs and the penalty has also been reduced to ₹ 25 ,000 - pure finding of fact has been recorded on the basis of material produced before it to the effect that though first condition was fulfilled by the appellants, they failed to fulfill the second condition - Appellant seeks to withdraw petition - Petition withdrawn.

Summary

Issues involved:
1. Compliance with conditions of Notification No.64/88 dated 01.03.1998 for import of hospital equipments.
2. Show cause notice issued for non-compliance with conditions, resulting in demand of duty and penalty.
3. Appeals filed challenging the order before the Customs, Excise & Gold (Control) Appellate Tribunal.
4. Tribunal's judgment upholding the Commissioner's findings but reducing the fine and penalty.
5. Appellants' submission of documents showing payment of penalties, interest, and duty.
6. Request for withdrawal of appeals by the appellants.

Compliance with Notification Conditions:
The case involved a hospital importing equipment under Notification No.64/88 dated 01.03.1998, which required certain conditions to be met, including providing free services to outdoor and indoor patients from low-income families. The Commissioner issued a show cause notice for non-compliance, leading to a demand for duty and penalties.

Appeals and Tribunal Judgment:
The appellants challenged the Commissioner's order by filing appeals before the Customs, Excise & Gold (Control) Appellate Tribunal. The Tribunal upheld the Commissioner's findings regarding non-fulfillment of conditions but reduced the fine and penalty imposed on the appellants.

Withdrawal of Appeals:
During the proceedings, the appellants submitted documents showing payment of penalties, interest, and duty. Consequently, the appellants sought permission to withdraw the appeals. The Supreme Court dismissed the appeals as withdrawn based on the appellants' request.

In conclusion, the Supreme Court's judgment was based on the appellants' failure to comply with the conditions of the notification, leading to the demand for duty and penalties. The Tribunal's decision to uphold the findings but reduce the fine and penalty was affirmed, and the appeals were ultimately dismissed as withdrawn upon the appellants' submission of documents indicating payment of dues.