Customs | ELISA Kits For Food Testing Qualify As 'Diagnostic' For Exemption: Delhi High Court Grants Interim Relief To Importer

Recently, a Division Bench comprising, Justice Prathiba M. Singh and Justice Shail Jain were hearing an appeal by the importer against denial of the exemption by Delhi, Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Delhi High Court noted that confirmation of duty demand by CESTAT was based on the decision in case of Ilishan Biotech wherein interim stay on recovery was operating in Customs Appeal No. 37/2025. Thus, it was directed that no coercive steps for recovery of differential duty demand of ₹1.67 crore shall be initiated against the importer.

ELISA Kit for antibiotic testing in food are diagnostic reagents used for detecting antibodies, antigens, or pathogens in animal samples. These kits were for diagnosing allergens and other contaminants in food and food products as well as for Research & Development on animals.

Petitioner, an importer of ELISA Kits claimed Customs Duty exemption benefit under two Customs Notifications No. 12/2012-Cus dated March 17, 2012, and No. 50/2017-Cus dated June 30,2017 as well as IGST Notification No. 01/2017-Integrated Tax (Rate) dt June 28, 2017 [Notifications], particularly, Entries 148 (A) and 167 (A) pertaining to 'Lifesaving drugs/medicines including their salts and esters and diagnostic test kits specified in List 4'. Petitioner was also engaged in distribution of food diagnostic and food Ingredients test kits as well as test kits for Research & Development.

The Customs Department sought to deny the exemption on the premise that Exemption applied only to life-saving drugs/medicines and diagnostic kits for medical/veterinary diagnosis, not food testing kits. Section 28 (4) of the Customs Act, 1962 was invoked for creating duty demand for extended period of limitation by alleging misdeclaration.

Advocate Kishore Kunal assailing the hypothesis that Exemption under the Notifications were allowed by way of 'end use' i.e. only for those diagnostic tests that relate to diagnosis of illness in humans and animals, emphasized on the language of Notifications.

It was submitted that Notifications do not expressly call for 'End Use' condition. It was also urged that effective hearing opportunity of hearing could not be availed during the second wave of COVID-19 pandemic when Show Cause Notices were issued.

Further, it was also pointed out that importer brought in testing kits for R&D purposes too and if proper hearing opportunity were given the testing kits for veterinary purposes would certainly have been excluded from the total demand confirmed against it.

apart from food testing kits, the Appellant had also imported testing kits for Research & Development (“R&D”) of animal diseases viz. veterinary purposes

CESTAT Delhi followed Co-ordinate Bench decision in case of Ilishan Biotech wherein exemption was denied for import of ELISA Kits. A Bench comprising Justice Dilip Gupta and Shri. P.V. Subba Rao upheld demand for normal period and set aside demand raised by invoking extended period of limitation.

A similar challenge relating to Customs Duty exemption on ELISA Kits rests with the Delhi High Court in case of Ashish Bhandari vs. Principal Commissioner of Customs, Customs Appeal No. 36/2025.

Case Detail: Adinath Veterinary Products Pvt. Ltd. vs. Principal Commissioner of Customs

For Petitioner: Advocate Kishore Kunal, Runjhun Pare

For Respondent: SSC Aditya Singla with Advocates Arya Suresh Nair, Dhananjay Gautam, Akhil Sharma,

Shreya Lamba

Click here to read the Order.