Disposable Cuvettes Can Be Classified As Parts Of Diagnostic Equipment: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that specially designed micro-cuvettes used with Roche Diagnostics India's Cobas c111 analyser are classifiable as parts of the diagnostic equipment.

It ruled that the cuvettes' disposable nature did not by itself prevent such classification.

A Bench of Judicial Member P. Dinesha and Technical Member M. Ajit Kumar held that the “Integra Microcuvetten, Micro Cuvette Segment” was not merely a plastic container for holding the sample.

It was specially designed for sole or principal use with the analyser.

“On similar lines we find that the 'Integra Microcuvetten, Micro Cuvette Segment' is not merely a plastic container for holding the sample. It is a specially designed functional product suitable for sole or principal use with the Analyzer.”

The Tribunal noted that the cuvettes' dimensions, configuration, material, and optical characteristics were specifically engineered to enable accurate analysis. The sample and reagents are processed inside the cuvette, through which the required light transmission takes place for measurement.

Roche Diagnostics had argued that the cuvettes were specially designed components of the Cobas c111 analyser. It said their design, material and optical characteristics were integral to the analytical process.

The Customs Department, however, treated the cuvettes as consumable labware rather than parts or accessories of the analyser. It argued that they were separately used and consumed during the testing process.

The adjudicating authority ordered the goods to be re-classified as plastic articles under CTI 3926 9099. It also confirmed differential duty of about ₹2.49 crore, along with a ₹2 crore redemption fine and a penalty of about ₹2.49 crore.

The Tribunal relied on Chapter 90 Note 2(b), which covers parts and accessories suitable for sole or principal use with a particular machine, instrument, or apparatus. It noted that the provision does not require permanent physical attachment.

It further observed that “disposable” and “consumable” are not synonymous. The fact that an item is intended for single use or disposal after use does not, by itself, prevent it from being classified as a part or accessory.

The bench held that the cuvettes were suitable for sole or principal use with the Cobas c111 analyser. It therefore upheld their classification as parts of instruments and apparatus for physical or chemical analysis.

The tribunal accordingly set aside the impugned order. It held that the questions of interest, confiscation and penalty did not arise after the classification was decided in Roche's favour.

For Roche Diagnostics India Pvt. Ltd: Advocate E. Ramesh

For Customs Department: Anoop Singh, Authorised Representative