IGST Imposition On Import of Oxygen Concentrators As Gift For Personal Use Unconstitutional: Delhi High Court

The Delhi High Court has held that the imposition of IGST on the import of oxygen concentrators by individuals for personal use is unconstitutional.

The High Court had reserved order in the a 85 year old's plea challenging the levy of IGST on the import of oxygen generators as gift for personal use to India.

The petitioner challenged a notification dated 01.05.2021 issued by the Ministry of Finance stating that it would force payment of IGST of 12% on the oxygen concentrator, which was accordingly quashed by the High Court on Friday.

A division bench comprising of Justice Rajiv Shakdher and Justice Talwant Singh reserved orders in the plea after hearing Amicus Curiae Senior Advocate Arvind Datar and Senior Advocate Sudhir Nandrajog along with Advocates Siddharth Bambha, Shyam D Nandan and Mr. Chirag Ahluwalia appearing on behalf of the petitioner.

"We've held that imposition of IGST on the oxygen concentrators imported by individuals and are received by them as gifts, for personal use is unconstitutional. Given this declaration, notification no 30/2021 dated 1/5/2021 is quashed." the Bench said. 

The Bench noted that the third direction is to avoid misuse of oxygen concentrators by petitioner and by persons similarly circumstanced, she/he will have to furnish and undertaking to officer designated by the State, so same is not commercially used 

For petitioner, the Bench has directed the Registry to release money deposited with it, along with any interest if accrued at the earliest.

It was the case of the petitioner that the imposition of any sort of levy by the state on the import of Oxygen /Oxygen generators or Concentrators for personal use abridges the said invaluable right and such imposition deserves to be struck down as being violative of Art 21.

During the previous course of hearing, the Court had observed that the Centre should consider granting IGST exemption for oxygen concentrators imported for individual use by way of gift, having regard to the COVID-19 crisis.

The Centre, on May 3, granted IGST exemption for oxygen concentrators imported by the State Government, or via any entity, relief agency or statutory body, authorised by the State Government. This exemption is available till June 30.

The High Court had suggested that this exemption should be extended to individuals as well.

"We are of the view that since the respondent has gone this far, it could move further, and extend the exemption, to even individuals, to enable them to obtain imported oxygen concentrators by way of a gift, albeit, without having to pay IGST", the Court had said in the order passed on May 5.

Also Read :  "This Is A George Floyd Moment For Citizens Of This Country": Delhi HC Strikes Down IGST Imposition On Oxygen Concentrators Imported By Individuals

CaseTitle: Gurucharan Singh v. Ministry of Finance