( 1 ) COMMON questions of law arise for consideration in these petitions, which were heard together and shall stand disposed of by this order. The questions primarily relate to a true and correct interpretation of Notification No. 64 of 1988, dated 1st of March, 1998 issued by the Central government in exercise of its powers under Section 25 of the Customs Act, 1962 and the eligibility of the petitioners for the grant of exemption from payment of customs duty on the import of medical equipments from outside the country. The correctness of the orders passed by the respondents on the applications made by the petitioners for the grant of exemption certificates and the withdrawal of certificates already granted has been assailed on a variety of grounds. The challenge arises against the following backdrop. 2. People's Union of Civil Liberties in a writ petition filed in public interest before the High court of Delhi made serious allegations about what it described as a financial scam involving custom free, import of expensive medical equipment worth thousand crorcs on the basis of custom duty exemption certificates issued by the Directorate General of Health Services. These certificates were according to the petitioners, granted illegally with a view to defraud the exchequer of a huge amount recoverable on the import of such equipment by a large number of hospitals established in different parts of the Country. While the petition was pending consideration before a Division Bench of the High Court, the Government of India by an order dated 20th of May, 1996 appointed Sri K. Chandramouli, Joint Secretary, Ministry of Health and family Welfare to conduct a preliminary enquiry as to the validity of the certificates issued by the Directorate of Health Services from time to time. The terms of reference for the enquiry entrusted to Sri Chandramouli were enlarged by the High Court by its order dated 23rd of May, 1996. The committee was among other aspects detailed in the modified terms of reference drawn up by the Court required to examine the validity of the certificates granted to 19 different hospitals including the petitioner-Ma-nipal Hospital, Bangalore. A report was in due course, submitted by Sri Chandramouli, which prima facie found the acts of the Officers of Directorate general of Health Services and Customs Department to be irresponsible and negligent. The report did not rule out large scale corruption in the issue of the certificates. Keeping in view

( 2 ) THE report and the fact that the evasion of duty involved ran into hundreds of crores, the Court by an order dated 18th of October, 1996 constituted two committees. The first committee comprising sri S. D. Mohile, Member, Central Board of Excise and Customs was required to quantify the amount of customs duty forgone in cases where equipment/machinery was released with or without production of customs exemption certificate under Notification No. 64 of 1988 dated 1st of March, 1988 and to suggest steps to be taken for collection of the duty payable by the parties who had availed of the exemption available under the notification, to which they were not otherwise entitled. The second committee comprising officers of the Revenue Intelligence, central Excise, the Directorate of Health Services and the CBI were constituted under the overall supervision and guidance of Mr. Padam Rosha, (Retired) Director General, Security, J and K with the object of identifying the acts of omission and commission of the officers of the directorate General, Health Services/ministry of Health and Family Welfare/customs department, or any other Department which may have resulted in a loss to the Exchequer and the reasons for such acts of omission and commission and to enquire whether customs duty exemption certificate had been issued by the Ministry of Health and Family Welfare/directorate general of Health Services in accordance with the terms and conditions laid down in the notification. The committee

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