- (1.) The petitioner has sought to quash the order dated 13-11-2000 (Annexure 26 to the writ petition) passed by respondent No. 2 Director General, Directorate General of Health Services (M.G. Section), Nirman Bhawan, New Delhi withdrawing customs duty exemption certificate and the notice dated 16-9-2000 (Annexure 27 to the writ petition) issued by the Commissioner of Customs, Air Cargo, New Custom House, New Delhi, respondent No. 3.
(2.) The petitioner is a registered company. It has established a hospital in Kanpur. The Central Government issued Notification No. 64 of 1998 under Section 25 of the Customs Act granting exemption in customs duty on import of Hospital equipments and accessories on fulfilling certain terms and conditions. The petitioner applied for grant of such exemption. The petitioner was granted exemption on certain conditions being satisfied Respondent No. 2 issued a notice to the petitioner on 15-5-2000 that a team of officers of the Directorate is to inspect the hospital on 18/19-9-2000 and the petitioner was requested to co-operate with the inspection team. The Chief Medical Officer, Kanpur wrote a letter on 28-10-2000 to the petitioner to give all the relevant details in regard to the hospital. The petitioner submitted reply on 29-10-2000 that it is unable to provide complete details in a very short period and sought 4 days time to furnish the proper details. The respondent No. 2 passed the order that on inspection of the institution, the team observed as under : "(i) All patients have to get an OPD Registration Card by paying Rs. 100/-. Hardly any patient was found to be given free registration. (ii) OPD consultation is provided by private consultants whose fees are collected at the registration. Very rarely, a patient is given free consultation. (iii) No indoor patient was found to be provided free treatment. (iv) No beds were found earmarked for poor patients. (v) The investigation done free of charge in all the labs, were negligible." On the basis of the said inspection, the exemption was withdrawn.
(3.) We have heard shri S.P. Gupta, learned Senior Counsel for the petitioner and Shri Subodh Kumar learned counsel appearing for the respondents.;