ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 26.06.2025
CESTAT Delhi- Upholds Exemption for HIV Viral Load Kits and Quashes Inflated Customs Valuation
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi has granted relief to M/s Cepheid India Pvt. Ltd. by allowing exemption from customs duties for their imported HIV-1 Viral Load Test Kits and setting aside the re-determined assessable value imposed by the Principal Commissioner of Customs, New Delhi. The decision was delivered on June 25, 2025, by Principal Bench.
Background:
Cepheid India, a subsidiary of the California-based Cepheid Group, imported molecular diagnostic equipment and test kits including the HIV-1 Viral Load (VL) kits under various Bills of Entry between August 2016 and April 2021. The customs department denied exemption benefits and alleged undervaluation based on related party imports, leading to reassessment under Rule 12 of the Customs Valuation Rules, 2007.
The Principal Commissionerโs order rejected exemption claims under multiple notifications including:
- Notification No. 12/2012-Cus. (Sr. No. 148)
- Notification No. 50/2017-Cus. (Sr. No. 167)
- IGST Rate Notification No. 1/2017-IT (Rate), Sr. No. 180
Additionally, a penalty under Section 114A and interest under Section 28AA of the Customs Act, 1962 was imposed.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Delhi
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