Customs exemption for diagnostic test kits applies when the goods match the notification, despite a research-use remark in the licence.

Diagnostic test kits eligible under Customs Notification No. 36/96 cannot be denied exemption merely because the import licence carries a research-use remark, if the goods themselves satisfy the notified description and the importer holds a valid licence. The end use of the kits was held immaterial where the notification turned on the character of the goods, not on how they would later be used. The licensing authority was also held not concerned with prescribing the post-import use of goods described in the exemption notification. Exemption was therefore available.

---

---

Issues: Whether the importer was entitled to the benefit of Customs Notification No. 36/96 for diagnostic test kits when the import licence described the goods as for research purposes and not for diagnostic purposes.

Analysis: The notification granted nil duty to diagnostic test kits for detection of HIV antibodies, subject to possession of a valid licence issued by the appropriate authority. The importer held such a licence, and the remark inserted by the licensing authority restricting the goods to research use did not alter the character of the goods as diagnostic kits. The end use of the kits was held to be immaterial so long as the goods themselves answered the description in the notification. The licensing authority was also found not to be concerned with specifying the use to which the imported goods should be put.

Conclusion: The importer satisfied the conditions of the notification and was entitled to exemption.

Final Conclusion: The order denying exemption was set aside and the appeal succeeded.

Ratio Decidendi: Where imported goods fall within the description of an exemption notification and the importer holds the required valid licence, exemption cannot be denied merely because the licence carries a remark limiting the intended use, if that remark does not negate the notified character of the goods.

---