Misuse of Notif. 64/88-Cus for import of hosital/medical equipment - Recovery of customs duty - Customs - 023/97

Circular No. 23/ 97- Cus. dated 4/ 7/ 97 F. No. 460/ 119/96- Cus. V Government of India Ministry of Finance Department of Revenue, New Delhi Subject : On going inquiry in to the alleged misuse of notification No. 64/ 88- Cus.- instructions regarding initiating action against the importers who are not complying with the conditions stipulated in the notification. I am directed to refer to the ongoing inquiry in the Delhi High Court regarding alleged misuse of notification No. 64/ 88 - Cus. In this regard, your attention is invited to the judgement of the Hon'ble Supreme Court, in the case of M/ s Mediwell Hospital Health Care Pvt. Ltd. Union of India in CA No. 16735 of 1996, decided on 17.12.1996, reported in ELT 1997 (89) ELT 425 (SC). The court has observed, therein, at para 12 there of that the authority which has issued the CDEC (i.e. DGHS) would ensure that the conditions of the notification, regarding grant of free treatment to at least 40% of outdoor patients, and to all indoor patients having an income of less than Rs. 500/ - per month, as stipulated therein, are being fulfilled, and in case it is observed that they are not being fulfilled, they can enforce customs duty realization from them. In this regard, Board has decided that the field formations under CBEC should also have a suitable monitoring mechanism, to ensure compliance with the obligations of the said notification, by the importing institutions, and wherever any breach of the conditions of the notification is brought to notice to initiate proceedings for recovery of the customs duty amount payable. To start with, Rosha Committee has identified certain institutions who have failed to fulfill these conditions. The action for demand collection of duty in such cases be taken. Wherever breach of conditions of notification is otherwise noticed or brought to notice be any agency or individuals, action may also be taken without waiting for orders from the DGHS. Sd /- (Anil S. Bedi) Under Secretary to the Govt. of India