2026-VIL-1239-CESTAT-DEL-CU
  1. Home
  2. 2026-VIL-1239-CESTAT-DEL-CU

CUSTOMS CESTAT Cases

Customs - Classification of QFT tubes and benefit of exemption notification - Individual components cannot claim exemption available to complete products; functional inter-dependence not a criterion for tariff classification when entry refers to complete unit - Respondent imported QFT tubes (blood collection tubes containing peptide antigens used for tuberculosis testing) and classified them under Custom Tariff Heading 3002 9020 claiming 5% concessional basic customs duty under Serial No. 166(A) of Notification 50/2017-Customs dated 30.06.2017 - Customs authorities reclassified the goods under CTH 3822 1990 (other diagnostic reagents) with 10% BCD. Respondent later accepted the CTH 3822 1990 classification but contended that despite this classification, QFT tubes qualify for the 5% concessional BCD as integral components of ELISA kits citing functional interdependence between the tubes and ELISA plates - Whether QFT tubes, being components of ELISA kits, are eligible for the 5% concessional basic customs duty available for ELISA kits under Serial No. 166(A) of Notification 50/2017-Customs, or whether the exemption benefit is restricted to complete ELISA kits only and individual components cannot claim exemption meant for complete products – HELD – The exemption notifications must be strictly construed and when there is ambiguity, benefit goes to revenue not to assessee. Benefits cannot be extended beyond literal scope. The statute has extended exemption to ELISA kits as complete units. The imported goods are admittedly not the kit but a component thereof. Had legislature intended to extend benefit to individual components, it would have been specifically mentioned in the notification. QFT tubes are glass tubes meant for blood collection and being coated with antigens customizing them for use in ELISA kits does not render them ELISA kits. Functional interdependence of components does not fulfill criteria of strict interpretation of fiscal statutes. The established position is that individual components cannot claim exemption meant for complete products or systems - The end use or functional interdependence is not a criterion for determining classification unless the tariff entry explicitly refers to used or adaptation. The taxable event occurs when goods are imported and what matters is the condition of goods at time of import. The Commissioner (Appeals) wrongly extended exemption benefit of ELISA kit to QFT tubes by basing the decision on functional interdependence rather than on the literal wording of the notification - The order-in-appeal allowing respondent the benefit of 5% concessional BCD under Notification 50/2017 is set aside. QFT tubes do not qualify for the 5% concessional basic customs duty and should be classified under CTH 3822 1990 with 10% basic customs duty - The appeals filed by the department are allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTAT Filing Near: Closing Resolutions...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?