Terming the Modi government's move to levy 12% Integrated Goods and Services Tax (IGST) on the import of oxygen concentrators for personal use as "unconstitutional", the Delhi HC quashed the tax levied on the item. The Ministry of Finance had issued a notification earlier this month stating that such oxygen concentrators imported for personal use, regardless of whether they are a gift or not, will be subject to a 12% IGST.
However, the Delhi High Court ruled on Friday that the Centre's imposition of Integrated Goods and Services Tax (IGST) on the import of oxygen concentrators by individuals for personal use is unconstitutional. "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," the Bench observed.
A bench of Justices Rajiv Shakdher and Talwant Singh ruled that importers of oxygen concentrators must provide a letter of undertaking to the relevant authority stating that the device is for personal use only and not for commercial use.
Bench was hearing a petition by 85-year-old Covid-19 patient
The order was made following a petition by an 85-year-old Covid-19 patient whose nephew had sent an oxygen generator from the United States of America as a gift. The petitioner's senior counsel Sudhir Nandrajog contended that the Finance Ministry's imposition of IGST on equipment intended for personal use infringed Article 14 and restricted the right to have oxygen, which was part of the right to life under Article 21 of the constitution. The government's lawyer contended that taxes cannot be challenged in court and that the IGST was levied in this case to maintain parity with a commercial user and to prevent black marketing and profiteering.
Last week also the Delhi High Court had slammed the government on the issue of taxes on medical equipment in COVID related treatment. The court had said, "It makes no sense. How much are you going to collect from the citizens with this? This must be brought to the notice of the highest in the ministry including Minister of Finance."
