ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 16.06.2025
CESTAT Bangalore sets aside the Confiscation of Donated Medical Equipment
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, has set aside the confiscation and penalties imposed on G.V. Foundation, a charitable trust, for importing used medical equipment donated from the USA during the COVID-19 pandemic.
Background: Humanitarian Import Challenged
G.V. Foundation, a Bangalore-based charitable trust, imported a consignment of used but fully functional medical equipment donated by SOS International Inc., USA. The shipment was clearly labeled as βdonated relief cargo with no commercial valueβ.
Despite:
- The existence of a non-commercial invoice,
- A Sea Waybill stating “No License Required”, and
- Chartered Engineer certification confirming that the items had more than 80% residual life and were not hazardous or E-Waste,
Customs authorities classified parts of the consignment as prohibited and hazardous, invoking provisions under Section 111(d) and Section 112(a) of the Customs Act, 1962, leading to:
- A penalty of βΉ2 lakhs on the trust.
- Confiscation of certain items,
- Redemption fines, and
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 Bangalore
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