2005 (1) TMI 200 - AT - Customs

Summary

Issues:
Entitlement to benefit of Notification No. 64/88-Cus., violation of principles of 'Natural Justice'

Entitlement to benefit of Notification No. 64/88-Cus.:
The appeals arose due to Orders-in-Original passed by the Commissioner of Customs following a remand order by CESTAT. The main issue was the entitlement of the appellants to the benefit of Notification No. 64/88-Cus., dated 1-3-1988. The Commissioner found that the conditions of the Notification were not fulfilled by the appellants, leading to confiscation of imported equipment, duty demand, penalty imposition, and interest under Section 28AB of the Act. The appellants argued that the remand order was a mere reproduction of the earlier order, and the adjudicating authority failed to consider their records showing compliance with the Notification's conditions. They contended that charging a nominal registration fee should not disqualify them from the benefit of the notification. The appellants also highlighted the reservation of over 10% of hospital beds for free treatment, emphasizing the violation of 'Natural Justice' by not examining their records.

Violation of principles of 'Natural Justice':
The Tribunal considered the contentions of both parties and observed that the adjudicating authority concluded that free treatment was not provided due to charging a registration fee of Rs. 10. However, the Tribunal disagreed, stating that such a nominal fee should not prevent the benefit of the notification. It was noted that even if fees were charged from patients with incomes below Rs. 500 per month, as long as 10% of hospital beds were reserved for free treatment, the notification's benefit could not be denied on other grounds. The Tribunal found a violation of 'Natural Justice' as the adjudicating authority did not examine the appellants' records, crucial evidence for fulfilling the notification's conditions. Therefore, without expressing an opinion on the case's merits, the matter was remanded to the Original Authority to reevaluate the issue while adhering to the principles of 'Natural Justice,' keeping all issues open for further consideration.