Hospital Loses Customs Exemption

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad, has upheld the denial of customs duty exemption to Durgabai Deshmukh Hospital & Research Centre after the Director General of Health Services (DGHS) cancelled the Customs Duty Exemption Certificates (CDECs) for non-compliance with the mandatory post-import conditions. 

The Tribunal held that once the foundational eligibility under the exemption notification ceased to exist, the hospital became liable to pay the customs duty foregone, along with confiscation, redemption fine and penalty. 

It also rejected the hospital's alternative claim under other exemption notifications, reiterating that exemption notifications must be construed strictly.