No tax relief for pvt hosps if they fail to treat poor: MHC

CHENNAI: The Madras High Court upheld the Union Government’s decision denying duty exemption on the import of medical equipment to private hospitals which do not provide free in-patient treatment to the poor.

Hearing the suits filed by the private hospitals objecting the cancellation of tax exemption, Justice SM Subramaniam said that the rules, laid down for the benefit of the public, should be followed.

Apollo Hospitals, Chennai, and Gokulam Hospital, Salem, moved the HC after they were exempted from paying customs duty on the import of medical equipment from abroad due to non-compliance with the rules for duty exemption.

During the hearing, Additional Solicitor General ARL Sundaresan submitted that there are regulations that duty-free hospitals should provide free treatment to 40 per cent of the internal diseases of the poor with the help of imported equipment and reserve 10 per cent of the beds for free treatment and said tax exemption was revoked after an investigation revealed that the two hospitals were not following these rules.

Responding to this, counsel representing the private hospitals submitted that free treatment was provided in the medical camps conducted by the hospitals and questioned how could the hospitals provide free treatment when the patients do not come to the hospitals.