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TMI BlogDemand — limitation - in case of violation of post importation conditionX X X X Extracts X X X X X X X X Extracts X X X X ..... nt at least to 40% of the outdoor patients as well as to give free treatment to indoor patients belonging to the famiiies with income of less than Rs. 500 per month. The court in that case further desired the concerned authorities to ensure that these obligations were carried out and on being satisfied that such obligations have not been discharged shall enforce realization of customs duty from them. 2. The Board has come across a number of cases wherein the Department has invoked provisions of Section 28 of the Customs Act for realization of customs duty on the ground that the post-importation condition, as stipulated in Notification No. 64/ 88, had not been fulfilled. In many of the cases proviso to Section 28(1) were also invoked all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question whether the hospitals could resist demand on the ground that the existing exemption notifications do not cast any continuing obligation of free treatment etc. when medical equipments are imported duty free, the Law Ministry opined that the conditions govern ing the import wouId be as prevailing at the time of import and subsequent changes in law would not confer benefits on the earlier imports. The copy of opinions are enclosed herewith for ready reference. 4. The matter has been considered by the Board. Field formations are advised to issue show cause notices for demand of duty by invoking the provisions of Notification No. 64/88-Cus., without mentioning Section28 of the Customs Act, 1962 wherever the normal period of limitati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption but became leviable subsequently by reason of subsequent events. In the present case, the importer was entitled to exemption subject to meeting the continuing obligation. The duty liability would arise when that obligation is not satisfied. Hence, it appears possible to demand duty if the beneficiary hospitals are not meeting the obligation any more. 4. The second possible objection may be that the equipment is currently exempt from duty, hence, the equipment imported earlier subject to conditions would also enjoy duty exemption. We agree with the Department that the conditions governing the import would be as at prevailing at the time of import and subsequent changes in law would not confer benefit is on the earlier importers. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of the income of the patients concerned or otherwise, to patients other than those specified in clauses (a) and (b). Para 4 of the Table included any such hospital which is in the process of being established. 3. In Gujarat Imaging's case the Tribunal held that the exemption available in diagnostic treatment centres with no indoor treatments patients facilities hence denial of exemption is not sustainable nor is the imposition of penalty or fine justified. The Tribunal relied upon the exemption at the foot of the notification which includes any institution which renders diagnostic treatment. However, the tribunal observed that the condition in para 4(b) of the Table in respect of hospital in the process of being established is a post ..... X X X X Extracts X X X X X X X X Extracts X X X X
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