1988 (3) TMI 274 - AT - Customs

Summary

Issues:
1. Interpretation of Import Policy 1985-88 regarding eligibility of Nursing Home to import equipment.
2. Recognition of Nursing Home by State Government for import purposes.
3. Consideration of Nursing Home as a hospital under the Import Policy.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Bombay arose from an Order-in Original passed by the Collector of Customs, Bombay, regarding the import of a Microscope and Incubator by a Nursing Home. The Customs objected to the clearance based on the Nursing Home not being recognized by the State or Central Government. The Collector ordered confiscation of the items with an option for redemption on payment of fines. The appellant challenged this order.

During the appeal hearing, the appellant's representative argued that the Nursing Home had indoor facilities, was registered under the Bombay Nursing Homes Registration Act, and had a certificate from the Deputy Secretary to the Government of Maharashtra allowing import under the Import Policy. The representative contended that the Nursing Home met the definition of a hospital and should be considered recognized by the State Government.

The Collector's representative supported the original order, stating that mere registration under the Nursing Homes Act was insufficient for recognition. He argued that only recognized Nursing Homes with indoor facilities were eligible to import equipment under the Import Policy. The Tribunal examined the relevant entry in the Import Policy, which allowed recognized hospitals by the Central or State Government to import equipment.

The Tribunal found that the Collector did not address whether the appellant was a hospital but noted that the definition and facilities indicated it could be considered one. It highlighted an entry in the Import Policy allowing hospitals to import medical instruments without the condition of recognition. The Tribunal concluded that the Nursing Home, meeting the criteria of a hospital, was eligible to import the equipment, setting aside the Collector's order.

Moreover, the Tribunal emphasized that the State Government's certificate recognizing the Nursing Home for import purposes should be deemed as official recognition. It clarified that the Import Policy did not require explicit recognition by the State Government for import eligibility. Ultimately, the Tribunal allowed the appeal, overturning the confiscation and fines imposed by the Collector, with a directive for refund if already paid.