Pertinently, this show cause numberice dated 12.01.2000 was issued under Section 124 of the Customs Act, 1962 hereinafter referred to as Act and after stating that the aforesaid breach was allegedly companymitted by the appellant, in the show cause numberice, it was proposed as under Therefore, M s. Wockhardt Hospital Heart Institute, Bangalore are called upon to show cause to the Commissioner of Customs, Air Cargo Complex, Sahar, Andheri E , Mumbai 99 as to why a the medical equipments spares and accessories as detailed in Annexure of the Show Cause Notice and valued at Rs.1,14,23,471/ should number be companyfiscated under Section 111 o of the Customs Act, 1962.
It resulted in issuance of show cause numberice to the Institute.
The Institute replied to the said Show Cause Notice and also desired to be heard in person.
Personal hearing was accorded to the Institute.
The Institute was number charged any import duty as it had produced requisite certificate dated 11.02.1991 issued by the Director General of Health Services, New Delhi.
Twenty five thousand only on the importer under Section 112 a of the Customs Act, 1962.
This numberification provides for exemption on medical equipment imported against Custom Duty Exemption Certificate issued by the Director General of Health Services.
I also direct that the importer shall forthwith pay the duty amounting to Rs.1,65,24,050/ Rs.
the aforesaid medical equipment was companyfiscated.
64/88 dated 01.03.1988.
It had filed written submissions which were also companysidered.
64/88 cus dated 01.03.1988.
The operative portion of order of the companyfiscation and penalty reads as under I order, the companyfiscation of the goods valued at Rs.1,14,23,471/ mentioned in the show cause numberice, under Section 111 o of the Customs Act, 1962.
Apart from the said certificate, there are certain other companyditions which are mentioned in the numberification that need to be satisfied to avail the exemption.
In addition, the Institute was also directed to pay the duty amounting to Rs.
Accordingly, the goods, viz.,
I impose a penalty of Rs.25,000 Rs.
As is clear from this order, after companyfiscation of the goods, option was given to the Institute to redeem the said goods on payment of fine of Rs.1 lakhs.
The proceedings in respect of DGHS are dropped.
The importer may redeem them on payment of a fine of Rs.1,00,000 Rs.
The said Institute applied for exemption from payment of import duty taking shelter under the Notification No.
One crore sixty five lakhs twenty four thousand and fifty only in view of the failure to discharge the companytinuing obligation under numberification No.
However, the plea of the Institute in the reply filed to the Show Cause Notice was number accepted.
Penalty should number be imposed under Section 112 of the Customs Act, 1962 for the omission and companymission companymitted by the Wockhardt Hospital Heart Institute Bangalore.
Orders dated 11.07.2002 were passed by the adjudicating authority holding that the Institute had, in fact, companymitted the breach of the Notification No.
After sometime, the Revenue authorities respondent herein came to know that the Institute was companymitting breach of the aforesaid companyditions, as it had number been providing free diagnostic treatment to at least 40 per cent of all its outdoor patients and it was also number giving free treatment to indoor patients having income of less than Rs.500 per month and for this purpose, it had number got 10 per cent hospital beds reserved for such patients.
One lakh only , within thirty days of this order.
The Institute challenged the aforesaid order by filing appeal before the Customs, Excise Service Tax Appellate Tribunal hereinafter referred to as CESTAT .
64/88 during the material period.
K. SIKRI, J. The appellant herein, which is the successor of M s.Wockhardt Hospital and Heart Institute referred to as the Institute hereinafter had a hospital at Bangalore.
Sometime in the year 1990, the said Institute imported a Cardiac Catherization Laboratory known as Angiography system with its spares accessories valued at Rs.1,14,23,471/ .
