IGST On Imported Oxygen Concentrators For Personal Use 'Unconstitutional', Says Delhi HC

Due to the prevailing COVID-19 situation in the country, oxygen concentrators have become an 'essential item' of sorts at households.

Since the demand skyrocketed, the once available in India have almost vanished from the stores and those who can afford it are resorting to importing them from elsewhere.

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IGST of 12%

Earlier this month the Ministry of Finance had issued a notification saying that such oxygen concentrators imported for personal use, irrespective of whether they are a gift or otherwise, will be charged with an IGST of 12 per cent.

However, on Friday, the Delhi High Court ruled that imposition of Integrated Goods and Services Tax (IGST) by the Centre on import of oxygen concentrators by individuals for personal use is unconstitutional.

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A bench of Justices Rajiv Shakdher and Talwant Singh said that individuals will have to give an undertaking to the authorities that the oxygen concentrator is being imported for personal use and not commercial use.

The court order came in a plea filed by an 85-year-old man who alleged that custom authorities had seized an oxygen concentrator sent by his nephew for him as a gift from the US to ameliorate his condition over IGST payment.

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The petitioner had challenged imposition of IGST on the import of oxygen concentrators for personal use, as the essential equipment is already in shortage in the country during the COVID-19 pandemic.

His counsel had earlier said another notification has been issued by the ministry on May 3 which stated that if someone is giving it for charity, then it is exempted from IGST.

The plea said the May 1 notification was violative of Articles 14 and 21 of the Constitution since the same is arbitrary and infringes the right to life of patients reeling under the COVID-19 pandemic.

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It said the notification unconstitutionally mandates that the petitioner and other similarly placed Indian citizens to pay IGST on something as crucial as oxygen concentrator which is been gifted to them specifically for their personal use under the present circumstances wherein there is a nationwide crisis owing to the unavailability of oxygen concentrators and similar medical equipment.

The government counsel had argued that imposition of taxes could not be subject to judicial review, and IGST was imposed in the present matter to maintain parity with a commercial user and to avoid black marketing and profiteering.