2025-VIL-1011-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs - Section 28(4) of Customs Act, 1962 – Section 3(1) of Customs Tariff Act, 1975 – Rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 – Denial of duty exemption to import of HIV-VL test kits - Appellant imported HIV-viral load test kits through a Bill of Entry and claimed exemption from Basic Customs Duty (BCD) and Countervailing Duty (CVD) – Principal Commissioner denied exemption claimed by Appellant and rejected declared assessable value of other imported goods under Rule 12 of the Rules and re-determined same and confirmed proposed duty under Section 28(4) of the Act – Whether HIV-VL test kits imported by Appellant can be denied exemption from BCD and CVD and lower rate of IGST – HELD – Customs Notification dated 17-3-2012 exempted customs duty and additional duty leviable under Section 3(1) of Tariff Act to diagnostic test and test kits specified in List 4, which refers to “diagnostic kits for detection of HIV antibodies” - HIV-VL test kits are life-saving diagnostic kits used for detection and prognosis of HIV virus in human body. the Kits imported by Appellant not only detect presence of HIV infection, but being more sensitive and accurate, are used for regular monitoring of spread of HIV infection in body – When intention of Exemption Notification was to grant exemption to diagnostic kits for HIV antibodies, there is no good reason why test kits imported by Appellant for detection of HIV should be denied exemption – The HIV-VL test kits imported by Appellant would be entitled for exemption from BCD and CVD, and only 5% integrated tax as provided for in List 1 of IGST Rate Notification would be payable by Appellant – Impugned order denying exemption from BCD and CVD, and 5% IGST to Appellant, is set aside and the appeal is allowed - Re-determination of value – Whether declared value could be rejected and re-determined – HELD – Declared import values have been enhanced by Principal Commissioner by applying different load percentages – Principal Commissioner could not have taken into consideration any Bill of Entry which was not referred to in show cause notice, as no opportunity was provided to Appellant to rebut such Bills of Entries – Principal Commissioner was obliged to re-determine value only in accordance with allegations made in show cause notice – Impugned order has travelled beyond show cause notice – Re-determination of value of goods imported by Appellant is set aside – Matter is remitted to adjudicating authority to examine this issue afresh after supplying a copy of SVB report to Appellant and in terms of allegations made in show cause notice.
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