In re Copmed Pharmaceuticals Private Limited (CAAR Delhi)
The Customs Authority for Advance Rulings, New Delhi (CAAR) considered an application filed by M/s Copmed Pharmaceuticals Private Limited under Section 28-H of the Customs Act, 1962, registered as Serial No. 25/2026-27 dated 08.05.2026. The applicant sought a ruling on the applicable IGST rate for imports of bulk drugs/Active Pharmaceutical Ingredients (APIs) classified under Chapter 28 or Chapter 29 of the Customs Tariff Act, 1975. The application was held maintainable, as the applicant possessed a valid IEC and the issue was not pending before, or previously decided by, any Customs officer, Appellate Tribunal or Court.
Copmed, incorporated on 13.09.1988, imports bulk drugs/APIs for manufacture of pharmaceutical formulations and, in certain cases, for testing and analysis. The applicant stated that it had been importing the products under Form 10 and Form 11 licences issued under the Drugs and Cosmetics Rules, 1945 and had been paying IGST at 18%, but contended that the applicable rate was 5%.
The questions before CAAR were whether IGST was leviable at 5% under Sl. No. 226 of Schedule I to Notification No. 9/2025-Integrated Tax (Rate) dated 17.09.2025, and, if not, what rate applied to bulk drugs/API falling under Chapters 28 or 29.
