1996 (11) TMI 119 - AT - Central Excise

Summary

Issues:
1. Stay application filed by M/s. Hospita India (P) Ltd. challenging Order-in-Original regarding eligibility of hospital equipment imported under Notification No. 64/88-Cus.

Analysis:
The stay application was heard by the Appellate Tribunal CEGAT, New Delhi, concerning the denial of exemption by the Commissioner of Customs to M/s. Hospita India (P) Ltd. The denial was based on the failure to fulfill conditions specified in Notification No. 64/88-Cus. dated 1-3-1988. The key condition in question was the requirement for a certificate from the Ministry of Health and Family Welfare certifying that the hospital provides medical treatment without discrimination and free treatment to a certain percentage of patients. The appellant argued that the approval by the Director General of Health Services at the time of import should suffice, and there was no finding on the alleged non-compliance with the conditions in the order. Additionally, the appellant contended that the duty liability should not exceed 40% even if other arguments were against them. The appellant also claimed that the demand was time-barred due to no suppression during import. The appellant emphasized that they believed in good faith that the approval by the Director General of Health Services met the notification requirements.

The respondent, represented by Shri K.K. Jha, argued that the approval for import mentioned in the notification was separate from the post-import conditions necessitating a specific certificate from the Ministry of Health and Family Welfare. The respondent cited previous Tribunal Stay Orders to support their position and opposed the stay of recovery.

The Tribunal considered the arguments and highlighted the requirement for a certificate from the Ministry of Health and Family Welfare as per the notification conditions. The approval at the time of import by the Director General of Health Services may not meet the criteria specified in the notification. Financial hardship claimed by the appellant was questioned based on their profits in previous years. The appellant's plea of limitation was acknowledged, emphasizing the need for detailed examination during the final hearing. The Tribunal noted the confirmation of previous stay orders by the Delhi High Court during the proceedings.

After careful consideration, the Tribunal ordered the appellant to pre-deposit a sum of Rs. 25 lakhs within 8 weeks to waive the remaining duty amount and penalty. Failure to comply would result in the automatic vacation of the stay order and potential dismissal of the appeal. The matter was scheduled for further orders based on compliance on 20-12-1996.