2021 (5) TMI 224 - HC - Customs

Delhi High Court Considers Exemption of IGST on Oxygen Concentrators Amid Pandemic Crisis

The High Court of Delhi heard a writ petition challenging a Customs notification under Article 21 of the Constitution, emphasizing fundamental rights ... Exemption from IGST - Oxygen concentrators imported by the State Government - N/N. 4/2021 - Customs dated 03.05.2021 - HELD THAT:- notification has exempted imposition of IGST on oxygen concentrators imported by the State Government, or via any entity, relief agency or statutory body, authorised by the State Government. This exemption, according to the learned ASG, is, presently, available till 30.06.2021. 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. List the matter on 06.05.2021. Issues:Challenge to Customs notification under Article 21 of the Constitution.Analysis:The High Court of Delhi, comprising Hon'ble Mr. Justice Rajiv Shakdher and Hon'ble Mr. Justice Talwant Singh, heard a writ petition challenging a Customs notification issued on 01.05.2021. The petition raised a rare issue of challenging a tax-related notification under Article 21 of the Constitution, implying a concern for fundamental rights amidst the pandemic situation. The Court acknowledged the nature of tax as a state exaction and the usual lack of equity in its levy and collection. However, considering the current challenging circumstances, the petitioner invoked Article 21, emphasizing the need for a humane approach.In response to the petition, the Court had requested the learned Additional Solicitor General of India to participate in the proceedings. The ASG, Mr. Chetan Sharma, along with Mr. Zoheb Hossain, joined the hearing. It was noted that a subsequent notification exempted the imposition of IGST on oxygen concentrators imported by certain entities authorized by the State Government until 30.06.2021. The Court suggested extending this exemption to individuals as well, allowing them to receive imported oxygen concentrators as gifts without IGST payment.Both the learned ASG and Mr. Zoheb Hossain assured the Court that they would provide further instructions on the matter. Consequently, the Court scheduled the next hearing for 06.05.2021. The learned ASG was also requested to present the Court's order to the Hon'ble Finance Minister, Government of India, for consideration and action.