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(Medical) in the Directorate General of Health Services, Ministry of Health and Family Welfare, New Delhi, revoking the Custom Duty Exemption Certificate (CDEC) issued in favour of the petitioner-Hospitals under the Notification No.64/88-Cus. dated 01.03.1988 for import of certain medical equipments exempt from customs duty.

3. The petitioner-Hospitals imported certain medical equipments from out of India availing an exemption from customs duty under the said Notification. The said exemption was given to the petitioner-Hospitals from customs duty subject to the conditions as stipulated in the said Custom Notification No.64/88-Cus. dated 1.3.1988, which, inter alia, required the petitioner-Hospitals to provide free medical treatment on an average to 40% of outdoor patients and 10% of indoor patients. There were certain other conditions also in the said Custom Notification, Date of Order -04-01-2018 W.P.No.13285/2015 The Kasturba Medical College & Others Vs. The Union of India & Others.

In view of the above, a CDEC committee meeting was held on 10.06.2014 in DDG(M)'s chamber at Nirman Bhawan, New Delhi in which the minutes of the CDEC meeting were approved. It was decided that keeping with the principle of Natural Justice the Directorate has given an opportunity to be heard to all the petitioner hospitals before passing the order. Some of the hospitals have asked for time to substantiate their claim that they are fulfilling the post import conditions. They were given 15.07.14 as cut-off date for submitting the records.

Date of Order -04-01-2018 W.P.No.13285/2015 The Kasturba Medical College & Others Vs. The Union of India & Others.

Since then none of the appellants/petitioners have submitted any documentary proof in support of the claim. The Petitioner had enjoyed the fiscal benefits of exemption given by the Notification No.64/88- Cus. dated 01.03.1988 at the time but did not abide by the Undertaking given in an affidavit at the time of issue of CDECs causing loss of revenue to the public ex-chequer. Therefore, this Directorate/Department of Health has come to the conclusion that all the CDECs issued to the above institutions are hereby withdrawn and cancelled.

revoking the CDECs as well. Aggrieved by that, the petitioners are before this Court.

9. The Learned counsel for the petitioner also relied upon certain judgments to support his contention that the principles of natural justice have been breached in the aforesaid manner and consequently, the impugned order deserves to be quashed.

10. On the other hand, the learned counsel for the respondent-Union of India, Ms.K.Sarojini Muthanna has supported the impugned order and has urged before the Court that the petitioners have failed to adduce any evidence before the concerned Authority for satisfying the conditions of exemption under the Notification No.64/88-Cus. dated 1.3.1988, despite an opportunity given to them and CDECs of 392 Institutions/Hospitals out of 396 beneficiant Institutions were revoked, who misused the said exemption from customs duty by not satisfying the Date of Order -04-01-2018 W.P.No.13285/2015 The Kasturba Medical College & Others Vs. The Union of India & Others.