Case Law Details
Apollo Hospitals Enterprises Ltd. Vs Union of India, (Madras High Court)
With reference to the order impugned dated 23.06.2010, the Director General of Health Services considered the issue, whether the petitioners did not comply with the requirements of the notification No.64/88-Customs dated 01.03.1988.
It is brought to the notice of this Court that the authority is sitting on Appeal in respect of the order passed by the Constitutional Court and thereby disrespected the authority of the High Court. No doubt, such observations are highly unwarranted. The authorities are empowered to consider the facts independently with reference to documents and evidences, since the High Court remitted the matter back for fresh consideration. While considering the issues afresh, the authorities ought not to have made an observation that the High Court has committed an error or the observations made in the order are contrary to law. In this regard, the conduct of the authority stands deprecated. However, the said erroneous observations or unwarranted comments made by the authority against the High Court, cannot be a ground to invalidate the order, which is otherwise passed on merits.
With reference to the issue regarding the compliance of the clause in notification No.64/88, the Director General of Health Services categorically found that the petitioners hospital are the beneficiaries under the Notification dated 01.03.1988. The compliance of conditions are continuing onus. The hospitals were given ample opportunities to substantiate their claim that they have fullfilled the conditions stipulated in the notification. The hospitals have furnished informations regarding the free treatment provided based on the conditions. The Director General of Health Services formed an opinion that the medical services provided by the hospitals through the outdoor camps in another place, which is away from the location of the imported equipments installed cannot be considered. Accordingly, the claims of the petitioners hospital were not accepted as they conducted free medical camps outside the places and away from the place, where the imported medical equipments are installed. The free medical treatment contemplated under the said notification should be with a reference to outpatients treated at the hospitals, which includes all the equipments imported availing of the duty exemption benefits.
The authorized representatives of the hospitals also appeared before the Director along with the documents. The Director of Health Services, New Delhi found that the writ petitioners hospitals have not treated 40% of the outdoor patients and its indoor patients free of cost. Hence, they have not fulfilled the post import conditions as undertaken at the time of importation of goods. Thus, the writ petitioners are found to be not eligible to avail / retain the CDECs issued to them under notification No.64/88 Cus dated 01.03.1988.
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