Glucometer classification dispute: interim stay granted after prima facie support for Heading 9027 and duty protection concerns

The Bombay HC considered whether interim protection should be granted against an advance ruling classifying glucometers under Heading 9018 rather than Heading 9027. The Court noted that earlier decisions had already treated glucometers as classifiable under Heading 9027 and that the impugned ruling had not meaningfully addressed those authorities. It also observed that classification under Heading 9018 increased the importer's duty burden compared with competitors, while recognising the need to protect revenue because the differential duty was 5%. On a prima facie assessment, the importer established a case for interim relief, and the stay was granted pending final disposal of the appeal, with provisional clearance permitted.

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Issues: Whether interim stay ought to be granted against the advance ruling classifying glucometers under Heading 9018 instead of Heading 9027, in light of earlier decisions on the classification of glucometers and the differential customs duty consequence.

Analysis: The challenge raised a substantive classification question that had already been considered in earlier decisions holding glucometers classifiable under Heading 9027. The impugned ruling had not dealt with those authorities in a meaningful manner. The resulting classification under Heading 9018 subjected the importer to a higher duty burden than its competitors, while the Court also noted the need to protect revenue because the differential duty was 5%. On a prima facie assessment, the importer established a case for interim protection pending final disposal of the appeal.

Conclusion: Interim stay of the impugned advance ruling was granted in favour of the importer, and the goods were permitted to be provisionally cleared pending final disposal of the appeal.

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