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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
Circular No. 23 dated 4th July 1997
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. V/s 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 that have failed to fulfil
these conditions. The action for demand & collection of duty in such cases
is 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.
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