Commissioner of Customs Vs Rapid Diagnostics Pvt Ltd. (CESTAT Delhi)
CESTAT Delhi held that import of ‘hCG Pregnancy Rapid Test Strip’ and ‘hCG Pregnancy Rapid Test Cassette’ i.e. pregnancy detection kits based on ‘agglutinating sera’ are eligible for exemption notification. Accordingly, customs duty not leviable on the same.
Facts- The issue that arises for consideration in the appeals is whether the “hCG Pregnancy Rapid Test Strip” and “hCG Pregnancy Rapid Test Cassette” imported by Rapid Diagnostics would be eligible for exemption provided at Serial No. 148 of the Notification No. 12/2012-Cus dated 17.03.2012 and Serial No. 167 of Notification No. 50/2017-Cus dated 06.2017. Under these two Notifications, exemption from duty of customs is provided to “diagnostics test kits specified in List 4”.
Conclusion- Held that the disputed goods are based on “agglutinating sera” which is the chief component of the test kit that produces the result regarding the pregnancy. Thus, as agglutinating sera is the only active component and the rest of the components are passive, the pregnancy detection kits have their essential character defined by agglutinating sera. Thus, the imported goods would be covered under the Exemption Notifications.
FULL TEXT OF THE CESTAT DELHI ORDER
Customs Appeal No. 51743 of 2023 and Customs Appeal No. 51744 of 2023 have been filed by the department to assail the order dated 21.11.2022 passed by the Commissioner of Customs, ICD Tughlakabad, New Delhi1 by which the proceedings initiated by show cause notices dated 31.08.2021, 25.11.2021 and 03.09.2022 issued to M/s Rapid Diagnostics Pvt. Ltd, Delhi2 and to its Director Bharat Bhushan Jindal have been dropped.
