HIV Test Kits Qualify As Life-Saving Diagnostic Kits; Eligible For Customs Duty Exemption: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has acknowledged that HIV-VL take a look at kits qualify as life-saving diagnostic kits and is eligible for customs obligation exemption.
The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has noticed that the HIV-VL take a look at kits are “life-saving diagnostic kits” used for detection and prognosis of HIV-virus in a human physique.
“These kits not solely detect the presence of HIV an infection, however being extra delicate and correct, are used for normal monitoring of the unfold of HIV an infection in the physique. Thus, these kits are required for figuring out the course of remedy of HIV and thereby combating the epidemic of HIV, which is the only real intention behind introducing the exemption profit to life saving medicine/medicines and diagnostic kits for HIV”, acknowledged the bench.
The assessee is part of the Cepheid Group, which is a Company primarily based in California. It’s primarily engaged within the enterprise of buying and selling of take a look at cartridges, re-agents, molecular diagnostic testing gear used for sampling and detection of various kinds of ailments.
The subject concerned on this case pertains to the interval from 16.08.2016 to twenty.04.2021 throughout which the assessee had cleared consignments on lastly assessed Payments of Entry. Nonetheless, BCD, CVD and decrease price of IGST on HIV-VL Check Kits claimed by the assessee beneath varied Exemption Notifications have been denied and the declared worth has been rejected beneath rule 12 and re-determined beneath guidelines 4, 5 and 9 of the 2007 Valuation Guidelines.
The division submitted that the testing equipment is for detection and quantification of HIV-1 viral RNA. In different phrases, the mentioned testing is a viral load testing equipment and it can not detect HIV antibodies. The Viral Load testing and antibodies testing are two totally different Checks and therefore, the good thing about Notification can not be given to a testing methodology not talked about within the Notification.
The Tribunal opined that mere detection of HIV is just not sufficient for remedy of HIV an infection in a physique. It’s equally essential to repeatedly monitor the unfold of HIV an infection within the physique for figuring out the course of remedy. It’s for this motive that using immunologic exams and virological exams and viral load take a look at kits have assumed significance.
The bench acknowledged that the HIV-VL take a look at kits are life-saving diagnostic kits used for detection and prognosis of HIV virus in human physique.
The object and objective behind the introduction of exemption to HIV kits was in public curiosity to help the excessive demand of healthcare at inexpensive costs and to curb the unfold of HIV virus in India, added the Tribunal.
“The HIV-VL take a look at kits imported by the appellant could be entitled for exemption from BCD and CVD, and IGST could be payable @ 5% as supplied for in Checklist 1 of the IGST Price Notification,” acknowledged the bench.
In view of the above, the Tribunal allowed the attraction.
Case Title: M/s Cepheid India Non-public Restricted v. The Principal Commissioner of Customs
Case Quantity: CUSTOMS APPEAL NO. 52186 OF 2022
Counsel for Appellant/Assessee: Rohan Shah
Counsel for Respondent/Division: S.Okay. Rahman
