ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 24.07.2025
CESTAT Mumbai Allows Customs Duty Exemption for Medical Implants โ
In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has ruled in favor of Smith & Nephew Healthcare Private Limited, allowing their appeal against the denial of customs duty exemption on imported medical implants. This decision, pronounced on July 21, 2025, sets a significant precedent for the interpretation of exemption notifications under the Customs Act, 1962.
Background of the Case
Smith & Nephew Healthcare, a leading supplier of orthopedic and medical appliances, had been importing knee and hip implants, among other medical devices, under Customs Tariff Item (CTI) 9021 3100 and 9021 1000. โ They claimed customs duty exemption under Serial No. โ 578 of Notification No. โ 50/2017-Customs dated June 30, 2017, and Notification No. โ 01/2017-Integrated Tax (Rate) dated June 28, 2017. โ These exemptions were intended for assistive devices, rehabilitation aids, and other goods for disabled persons. โ
However, the Directorate of Revenue Intelligence (DRI) alleged that the imported goods were not exclusively used for disabled persons, as required by the exemption notification. โ Following an investigation, the Commissioner of Customs denied the exemption, demanded differential duty of over Rs. โ 210 crore, and imposed penalties and fines. โ
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 Mumbai
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