Merck Life Science Pvt. Ltd. Vs Commissioner of Customs (Import) (CESTAT Mumbai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench, in the case of Merck Life Science Pvt. Ltd. Vs Commissioner of Customs (Import), ruled that a concessional Integrated Goods and Services Tax (IGST) rate of 12% applies to all goods falling under Customs Tariff Heading (CTH) 3822, which includes both diagnostic kits and all laboratory reagents.
CESTAT Ruling on IGST for Diagnostic Kits and Reagents
The dispute centered on the classification and applicable IGST rate for goods imported by Merck Life Science Pvt. Ltd. The adjudicating authority initially classified the imported goods under CTH 38220090 instead of the appellant’s claimed CTH 38220019, denied a claimed exemption from Countervailing Duty (CVD), and rejected the concessional IGST rate of . The authority held that the rate, specified under Serial No. 80 of Schedule II of Notification No. 1/2017-Integrated Tax (Rate) dated June 28, 2017, covered only “diagnostic kits and diagnostic reagents,” thereby excluding laboratory reagents, certified reference materials, and pharmaceutical reference standards.
Merck Life Science Pvt. Ltd. appealed the order on the limited issue of the denial of the concessional IGST rate.
GST Council Clarification and Tax Research Unit Circular
