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 stated that HIV-VL test kits qualify as life-saving diagnostic kits and is eligible for customs duty exemption. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the HIV-VL test kits are “life-saving diagnostic kits” used for detection and prognosis of HIV-virus in a human body. “These kits not only detect the presence of HIV infection, but being more sensitive and accurate, are used for regular monitoring of the spread of HIV infection in the body. Thus, these kits are required for identifying the course of treatment of HIV and thereby fighting the epidemic of HIV, which is the sole intention behind introducing the exemption benefit to life saving drugs/medicines and diagnostic kits for HIV”, stated the bench. The assessee is a part of the Cepheid Group, which is a Corporation based in California. It is mainly engaged in the business of trading of test cartridges, re-agents, molecular diagnostic testing equipment used for sampling and detection of different types of diseases. The issue involved in this case relates to the period from 16.08.2016 to 20.04.2021 during which the assessee had cleared consignments on finally assessed Bills of Entry. However, BCD, CVD and lower rate of IGST on HIV-VL Test Kits claimed by the assessee under various Exemption Notifications have been denied and the declared value has been rejected under rule 12 and re-determined under rules 4, 5 and 9 of the 2007 Valuation Rules. The department submitted that the testing kit is for detection and quantification of HIV-1 viral RNA. In other words, the said testing is a viral load testing kit and it cannot detect HIV antibodies. The Viral Load testing and antibodies testing are two different Tests and hence, the benefit of Notification cannot be given to a testing method not mentioned in the Notification. The Tribunal opined that mere detection of HIV is not enough for treatment of HIV infection in a body. It is equally important to continuously monitor the spread of HIV infection in the body for determining the course of treatment. It is for this reason that the use of immunologic tests and virological tests and viral load test kits have assumed importance. The bench stated that the HIV-VL test kits are life-saving diagnostic kits used for detection and prognosis of HIV virus in human body. The object and purpose behind the introduction of exemption to HIV kits was in public interest to support the high demand of healthcare at affordable prices and to curb the spread of HIV virus in India, added the Tribunal. “The HIV-VL test kits imported by the appellant would be entitled for exemption from BCD and CVD, and IGST would be payable @ 5% as provided for in List 1 of the IGST Rate Notification,” stated the bench. In view of the above, the Tribunal allowed the appeal. Case Title: M/s Cepheid India Private Limited v. The Principal Commissioner of Customs Case Number: CUSTOMS APPEAL NO. 52186 OF 2022 Counsel for Appellant/Assessee: Rohan Shah Counsel for Respondent/Department: S.K. Rahman Click Here To Read/Download The Order

HIV Test Kits Qualify As Life-Saving Diagnostic Kits; Eligible For Customs Duty Exemption: CESTAT

Mehak Dhiman

Tags