HC allows duty-free imports of drug to treat black fungus

NEW DELHI: The Delhi high court on Thursday allowed the duty free import of Amphotericin-b, the only last line drug used to treat mucormycosis, on furnishing a bond by the importers till the Centre takes a decision on the tax waiver.

Cases of mucormycosis, or black fungus, have been rising in India as a Covid-19 complication, particularly among patients with uncontrolled diabetes or who may have been administered steroids indiscriminately.

Till Wednesday, India had recorded over 11,000 cases of the disease, which has a high fatality rate.

This has, consequently, also led to an acute shortage of Amphotericin-b due to an unexpected spike in supply.

“Considering the fact that the drug is required to save lives of people being infected with black fungus which is infecting thousands of people across the country, the central government shall seriously consider waiver of complete custom duties on these drugs at least for the period when it is in short supply in India to treat the patients of mycormycosis,” the bench of justices Vipin Sanghi and Jasmeet Singh said.

“We direct that if any import is made by any person of this drug (Amphotericin B), it shall be allowed on a bond furnished by the importer without the actual duty being paid, till a decision is taken by the Centre…the bond shall have the undertaking that in case the import duty is not waived, the duty shall be paid by the importer,” it added.

The court also referred to the judgment passed by another bench of the Delhi high court that termed the Integrated Goods and Services Tax (IGST) on the import of oxygen concentrators for personal use and as gifts to be “unconstitutional”.

The court said it was nobody’s case that the Centre has put a ban on importing the drug, and therefore, it can be imported by an individual or a state.

“The gap between demand and supply is widening by the hour. It has to be done on a war footing. Every hour counts. We just read an email that it’s available in UAE and Dubai. There is nothing to preventing to import the medicine from anywhere in the world. Centre cannot say that you can’t do it. Somebody’s life is dependent on that. They have to allow. You may tap the sources which you haven’t. There is no ban by the center in its import. It’s not monopolised or canalized,” the court said.

The order came while hearing a plea by a woman on behalf of her 80-year-old grandfather, who moved court through his counsel, Rohit Sharma, seeking directions to Delhi government and Sir Gangaram Hospital to provide them adequate numbers of Amphotericin-b vials.

During the proceedings, senior advocates Krishnan Venugopal, appearing for one of the petitioners, in the clutch of pleas on Covid management, told the court that the import duty is as high as 27%.

Advocate Iqra Khalid, for her grandfather, claimed that the duty was 78%.

Central government standing counsel Kirtiman Singh told the court that he was not aware of the exact percentage and will inform the court after taking instructions from the competent authority.

He submitted that the issue of waiving the import duty on such drugs will be communicated to the authorities including finance secretary and Central Board of Direct Taxes (CBDT) during the day and a decision will be taken soon.

The gap between demand and supply is widening by the hour. It has to be done on war footing. Every hour counts.