Use of r-DNA Technology in Manufacturing of Diabetes Insulin amounts to A Mono Component Insulin: CESTAT allows Customs Duty Exemption

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) allowed a customs duty exemption for the use of recombinant DNA (r-DNA) technology in the manufacturing of insulin for diabetes. The case involved a dispute over the classification of mono-component insulin and its eligibility for exemption. CESTAT ruled that the insulin produced using r-DNA technology falls under the category of mono-component insulin, which qualifies for duty exemption under applicable customs regulations. The ruling underscores the significance of biotechnology in modern pharmaceutical manufacturing and provides clarity on how such products should be treated for customs duty purposes. This decision benefits pharmaceutical companies using r-DNA technology, as it facilitates smoother importation and manufacturing processes by exempting them from certain customs duties.