ORDER
K. Gopal Hegde, Member (J)
1. This appeal arises out of and is directed against Order-in Original No. S/10-2661/86ACC (IV) dated 10.10.1986 passed by the Collector of Customs (Airport), Bombay. The facts necessary for the disposal of this appeal are few and simple. The sole proprletrix of the appellant imported a Microscope valued at Rs. 19.908/- and Incubator with attachment valued at Rs. 1,34,028/- and sought clearance against Serial No. 5 of Appendix 6 of Import Policy 1985-88. The Customs objected to the clearance on the ground that the importer is a private Nursing Home not recognised by State or Central Government and as such not entitled to import equipments and instruments. Since the importers waived written show cause notice, the Collector, who adjudged confiscation after affording personal hearing, ordered confiscation of both the items but allowed redemption on payment of fine of Rs. 6.000/- and Rs. 25,000/- respectively.
2. Feeling aggrieved by the order, as stated earlier, the appellant has come up in appeal.
3. During the hearing of this appeal, Shri Deshpande submitted that the appellant Nursing Home has indoor facilities. There are 20 beds. The appellants had filed an affidavit to this effect before the adjudicating authority. Besides the Nursing Home in question was registered under Bombay Nursing Homes Registration Act, 1949. The certificate to this effect was also produced before the adjudicating authority. It was further stated by Shri Deshpande that the Deputy Secretary to the Government of Maharashtra, P.H.D. had oar- . tilled that the appellants are entitled to import raw materials, components, consumables, machinery, equipment, instrument etc. under the Policy A.M. 1985-1988 as per Appendix 6 of Item No. 5. Shri Deshpande submitted that since the State Government had issued a certificate the Nursing Home is deemed to have been recognised by them. He further submitted that the expression ‘hospital’ takes within its ambit the ‘Nursing Home’ where there is indoor facilities for treatment. In that connection Shri Deshpande relied on the definition of ‘hospital’ given by the W.H.O. Committee on organisation of Medical Care: The said definition reads:
“The Hospital is a residential establishment which provides short term and long term medical care consisting of observational diagnostic, therapeutic and rehabilitative services for persons suffering or suspected to be suffering from a disease or injury and or parturients. It may or may not also provide services for ambulatory patients on an out patient basis.”
Shri Deshpande relied further on the definition of hospital and Nursing Home given in the Chambers 20th Century Dictionary.
“Hospital” – defined as a hostel for travellers (obs). formerly, a charitable institution for the old or destitute, or for receiption (and education) of the needy young and institution for treatment of sick or injured, a building for any of these purposes.
The expression “Nursing Home” is defined as ‘a private hospital’. Shri Deshpande submitted that Appendix 6 Item 5 permitted import of the goods in question by the appellant. Since it satisfies as a hospital and it further satisfies as a hospital recognised by State Government.
4. Shri Mondal appearing for the Collector, however, supported the order passed by the Collector. He submitted that all that the appellants were able to establish was that the Nursing Home was registered under the Nursing Homes Registration Act of Maharashtra. But then there is no certificate produced to show that Nursing Home has been recognised by the State Government of Maharashtra. He contended that it is only such of the nursing homes which had indoor facilities and which are recognised by the State Government that are eligible to import machinery, equipments allowed under Appendix 6, Item 5. He, therefore, urged that the appeal may be rejected.
5. I have considered the submissions made on both the sides and perused the available records. The relevant entry in Appendix 6 reads:
“Raw materials, components, consumables, Research and Development units,
machinery, equipment, instruments, acces- scientific or research laboratories, in-
sories, tools and spares excluding office stitution, of higher education and hospi-
machines. tals recognised by the Central or a State
Government."
6. It is thus seen that the hospitals recognised by Central or State Government are eligible to import equipment instruments and machinery under OGL under Appendix 6(5). The question for our consideration is whether the appellant is a ‘hospital’ and (2) if it is a ‘hospital’ whether it is recognised by the State or Central Government.
7. In his order, the Collector did not go into the question as to whether the appellant is a hospital or not. Apparently he was satisfied that the appellant was a hospital. Even otherwise having regard to the definitions referred to earlier, the appellant has to be considered as a hospital since it has indoor facilities for treatment. The Collector in his order, had referred to item 20(1) of Appendix 6. This entry permits hospital or medical institution to import medical, surgical, optical and dental instruments, apparatus and appliances and replacement parts and accessories thereof and dental materials for their own use provided the c.i.f. value of such goods imported shall not exceed Rs. 2 lakhs in a financial year, ft is not one of the conditions of this item that the hospital or medical institution should be recognised by State or Central Government. Any hospital or medical institution could import medical, surgical, optical, and dental apparatus and appliances for their own use. If the expression ‘Hospital’ takes within its ambit ‘Nursing Home’ then the import in question cannot be objected to since the value of the goods imported does not exceed Rs. 2 lakhs. The Collector, however, had referred to the clarification issued by the CCI&E in Ms latter dated 12.5.1981 which required the Nursing Home to be recognised by the State Government. The Collector was of the opinion that the certificate issued by the State Government does not amount to recognition of Nursing Home as contemplated by the CCI&E’s letter dated 12.5.1981.
8. As has been stated earlier, Item 20(1) which allows hospitals and medical institutions to import instruments and appliances does not lay down any conditions that the hospitals and institutions should be recognised by the State or Central Government As the Nursing Home in question is to be considered as a hospital, it is eligible to import the instruments and appliances required for its use. On this ground alone the order passed by the Collector is required to be set aside.
9. That apart, as seen earlier, under Item 6, hospitals, recognised by Slate or Central Government are eligible to import machinery and equipment. Excepting this entry there is no other entry in the Policy which requires recognition of the hospital by the State or Central Government. When the State Government issued a certificate that the Nursing Home in question is recognised for import of raw materials components consumables machinery equipment under OGL of the Import Policy 1985-88 as per Appendix 6 Item No. 5, the said certificate should be considered as a certificate recognising the Nursing Home by the State Government. It is not necessary to state in the said certificate that Nursing Home has been recognised by the State Government. Without recognising a Nursing Home, the State Government is not competent to issue such a certificate.
10 Viewed from any angle the objection taken for the import is not valid.
11. On consideration of all the aspects, I allow this appeal, set aside the confiscation as well as the fine levied in lieu of confiscation. The fine, if paid, shall be refunded to the appellants.
