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TMI Blog2018 (6) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... of benefit of notification No.6/2006 - CE dt.1/3/2006. In terms of explanation to S.No.16 of the above said notification, computers shall include Central Processing Unit (CPU) cleared separately or CPU with Monitor, Mouse and Key Board cleared together as a set, and shall not include input or output devices or accessories such as monitor, keyboard, mouse, modem, uninterrupted power supply or web camera cleared separately. It appeared to the department that appellants are not eligible for the notification, since the CPU without monitor does not constitute a machine namely 'Computer' to attract concessional rate of duty as per the notification. On verification of the sales invoice, it was found that the appellants cleared CPU alongwith mouse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of Bharat Diagnostic Centre v Commissioner of Customs 2014 (307) E.L.T.632 (S.C.). In the said decision, the issue for consideration was whether the Notification No.63/88 - Cus. dt.1.3.1988 which granted exemption to hospital equipments imported by specified category of hospitals could be extended to diagnostic centre. The explanation in said notification provided the meaning of the word "hospital" to include any institution, centre, trust, society, association, laboratory, clinic and maternity home which renders medical, surgical or diagnostic treatment. Applying the rules of interpretation with regard to the word "include", the Hon.Apex Court held that a diagnostic centre is eligible for the benefit of notification. The Ld.Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared separately; or CPU with monitor, mouse and key board, cleared together as a set; but shall not include input or output devices or accessories such as monitor, key board, mouse, modem, uninterrupted power supply system, or web camera cleared separately 12% - 5. The main force of the argument on behalf of appellant is that the department has accepted the classification of the impugned goods even without the monitor to be under 8471. Entry No.16 applies to goods falling under CTH 8471. When the goods fall under the said classification, the appellants come within the ambit of the eligibility / application of notification. Then the second question is whether the goods fall within the description of 'Computers' as given in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Directorate General of Health Services (for short, "the DGHS") to the Government of India. We are not going into the conditions that are prescribed for seeking exemption under the aforesaid notification. For the purpose of answering the reference, it is suffice to extract only the explanation appended to the notification dated 1-3-1988. The explanation reads as under "Explanation - For the purposes of this notification, the expression "Hospital" includes any institution, Centre, Trust, Society Association, Laboratory, clinic and Maternity Home which renders medical, surgical or diagnostic treatment." (emphasis supplied) 4. It would be pertinent at this stage to take note of the rules regarding the interpretation of the word 'includes' a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh construction of a condition thereof may be given a liberal meaning." 15. As we understand from the observations made in Mediwell's case (supra), the court was trying to observe that if an individual is running a diagnostic centre purely on a commercial basis, that is without providing treatment free of cost to at least 40 per cent of all their outdoor patients and free to all indoor patients belonging to families with an income of less than Rs. 500/- per month, the same would not be entitled for exemption under the notification. Therefore, we cannot take exception to the observations made in Mediwell's case (supra). 16. However, to make things clear, we observe that the notification has an explanation which we have already extracted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has to be then construed liberally. Even without such liberal interpretation, since the explanation uses the word 'include', it is very clear that although the CPU is not cleared alongwith the monitor, the goods would fall within the description of Computers as given in Column 3 of the Notification. From the discussions made above and following the above decisions, we are of the considered opinion that the demand cannot sustain and requires to be set aside which we hereby do.
7. In the result, the impugned order is set aside. The appeal is allowed with consequential reliefs, if any. The Misc applications No. 40886/2016 & 40885/2016 are dismissed as not pressed.
(Operative part of the order pronounced in open court) X X X X Extracts X X X X X X X X Extracts X X X X
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