Delhi High Court Grants Relief Of As Low As 5% IGST On Import Of Dialysis Machines By FMC India

The Delhi High Court has granted relief of as low as 5% Integrated Goods and Service Tax (IGST) on the import of dialysis machines by Fresenius Medical Care India Private Limited (FMC India).

The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that dialysis machines covered under HSN Code 9018 and 9031 are liable to be taxed at 5%, essentially awarding a significant rebate of 7% on the import of dialysis machines.

The petitioner/assessee, FMC, is the Indian subsidiary of the global leader in the production, marketing, and distribution of quality dialysis and renal medical equipment.

Upon the uncertainty of the correct Integrated Goods and Services Tax (IGST) rates applicable to “dialysis machines” and "dialysers," FMC sought clarifications as to the IGST rates on importing dialysis machines.

The petitioner sought a direction from the respondents-department to clarify that the IGST rate applicable to the petitioner for the import of dialysis machines is 5% as per HSN code 90189031 in terms of the office memorandum dated October 13, 2023.

The department submitted that dialysis machines covered under HSN code 90189031 are liable to be taxed at 5% in terms of the notification dated October 13, 2023. The IGST rate of 5% is also applicable for “artificial kidney” and “disposable sterilized dialyzer” (serial No. 254-55, respectively).

“Insofar as the case of the petitioner is concerned, subject to verification of the HSN code, the same would be subject to tax at 5% in terms of said notification,” the court said while disposing of the petition.

Counsel For Petitioner: Gaurhar Mirza, Hiral Gupta, Sukanya Singh and Neharika

Counsel For Respondent: Gibran Naushad, Anurag Ojha Subham Kumar

Case Title: Fresenius Medical Care India Private Limited Versus UOI

Citation: 2024 LiveLaw (Del) 446

Case No.: W.P.(C) 4757/2024& CM APPL. 19478/2024

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