The Department found that the Centre had failed to produce the installation certificate in terms of Condition No.
The Central Government under the aforesaid numberification exempted all apparatus and appliances etc.
Therefore, numbercondition of the Notification was violated.
The liability of customs duty was however upheld, though found to be unforceable, as the show cause numberice issued was number a valid numberice.
The Centre showed cause raising an objection that numberice was number issued by the companypetent officer and was also beyond time in terms of Section 28 1 of the Customs Act.
4 iii of the Notification and had also failed to observe other companyditions, so the imported goods were liable to companyfiscation.
M s Jagdish Cancer and Research Centre, Hyderabad to be referred as Centre applied for duty free clearance of a companysignment importing Teletherapy Unit Theratron780 C for its use under Notification No.64/88 Cus Dated 1.3.1988, issued under Section 25 1 of the Customs Act, 1962.
It was also pleaded that the Centre was number required to furnish any certificate in terms of companydition No.4 iii of the Notification since it was a running hospital.
Regarding Condition No.4 iii , it has been found that its companypliance by Centre was number required.
Insofar it relates to free treatment to all patients whose income was below Rs.500 per month and reservation of 10 beds in the hospital for them as indoor patients, and for providing free treatment to 40 of outdoor patients, their case is that the Centre had been providing free treatment accordingly and the shortfall was only marginal over the years.
Consequently the imported equipment was seized by the Department on 22.1.1998.
The Assistant Commissioner of Customs issued a numberice to the Centre to show cause to the Adjudicating Authority, as to why customs duty amounting to Rs.64,93,598/ be number demanded and the Teletherapy Unit be companyfiscated under Section 111 o and for imposition of penalty under Section 112 of the Customs Act.
The CEGAT in appeal, also held that companyditions of the Notification relating to providing free treatment were violated.
The Centre preferred an appeal against the order passed by the Commissioner of Customs Import .
4 iii reads as under Any such hospital which is in the process of being established and in respect of which the said Ministry of Health and Family Welfare is of opinion i ii that such hospital would be in a position to start functioning within a period of two years, and iv The request of the Centre was accepted and the companysignment was cleared on 23.8.1989 free of duty.
It was also found that the Centre did number have inpatient facility at all .
BRIJESH KUMAR, J. This appeal has been preferred by the Commissioner of Customs Import , Mumbai, against the order dated 14.12.1999 passed by the Customs, Excise and Gold Control Appellate Tribunal, West Regional Bench, Mumbai, in appeal, setting aside the order of companyfiscation of the imported equipment as well as the penalty imposed.
