LUCKNOW The commercial tax department has begun a probe to find out if any entities/organisations in UP illegally availed customs duty and health cess exemptions on the import of fingertip pulse oximeters by misrepresenting facts.
The move comes after the chief commissioner, central GST, Lucknow zone last month wrote a letter in this regard to the commercial tax department urging it to get the issue examined and provide feedback at the earliest. With the communiqué, he also attached a letter received from the Central Economic Intelligence Bureau (CEIB).
In a circular to all zonal additional commercial tax commissioners on August 11, additional commissioner (administration) Sudha Verma asked officials to give their feedback, with regard to their zone, to the headquarters as desired by the office of commissioner, CGST.
“We have issued instructions to zonal commissioners, asking them to ensure necessary action in the matter,” she said confirming and added that the GST wing was dealing with the issue.
In order to augment their production and availability and to meet the rising demand, the central government, on April 23, decided to grant full exemption from basic customs duty (BCD) and health cess on import of the items related to oxygen and oxygen related equipment for a period of three months with immediate effect.
{{/usCountry}}In order to augment their production and availability and to meet the rising demand, the central government, on April 23, decided to grant full exemption from basic customs duty (BCD) and health cess on import of the items related to oxygen and oxygen related equipment for a period of three months with immediate effect.
{{/usCountry}}The CEIB, in its letter that the commissioner (CGST) annexed with his communication to the commercial tax department, said the intelligence available in the bureau indicated that some unscrupulous entities engaged in import of fingertip pulse oximeter were claiming ineligible BCD exemption.
The centre’s notification, according the letter, provided for exemption from whole of customs duty levied at the currently applicable rate of 7.5% ad valorem and whole of the cess levied thereon artificial respiration or other therapeutic respiration apparatus (ventilators).
The fingertip pulse oximeter, the bureau pointed out, did not qualify the exemption criteria fixed in the notification. Pointing out that the illegal availing of BCD exemption had resulted in short payment of customs duty, the bureau said it was gathered that the same modus operandi was being adopted by importers in respect of fingertip pulse oximeter by wrong declaration of the same in order to get inadmissible exemption at various cargo complexes.
“Fingertip pulse oximeter is not an artificial respiration apparatus or ventilator and is used as an instrument to measure the amount of oxygen present in a person’s blood stream and hence does not get covered under the notification No 20/2020-customs, dated 09.04.2020, which is applicable to artificial respiration or other therapeutic respiration apparatus (ventilators),” said the bureau in its letter of May 25, adding “Therefore, the exemption of BCD availed on fingertip pulse oximeter is irregular.”