Ortho Clinical Diagnostics INDIA PVT LTD vs. Union Of INDIA & Ors.
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Cause title — parties, addresses and appearances
O R D E R % 26.09.2025
This hearing has been done through hybrid mode. CM APPL. 62050/2025 (for exemption)
Allowed, subject to all just exceptions. Application is disposed of. W.P.(C) 15083/2025, CM APPL. 62049/2025
The present petition challenges the impugned Order-in-Original dated 7th January, 2025 by which the demand raised against the Petitioner has been confirmed in the following terms:
“ 38. In consideration of the preceding discussions and findings, I hereby proceed to issue the following order:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/10/2025 at 12:18:26 ORDER: (i) I hereby confirm the demand of Rs.39,82,52,601/- (Rupees Thirty Nine Crores Eighty Two Lacs Fifty Two Thousand Six Hundred one only) (IGST of Rs.19,59,52,169/-, CGST & SGST of Rs.10,11,50,216/- each) under Section 74 (9) of CGST Act, 2017 read with corresponding provisions of Delhi GST Act, 2017 and IGST Act, 2017; along with applicable Interest under Section 50 of CGST Act, 2017; ii) I hereby confirm the demand of Interest under Section 50 of CGST Act, 2017 read with corresponding provisions of Delhi GST Act, 2017 and IGST Act, 2017; and (iii) I hereby impose a penalty of Rs.39,82,52,601/- (Rupees Thirty Nine Crores Eighty Two Lacs Fifty Two Thousand Six Hundred one only) (IGST of Rs.19,59,52,169/-, CGST & SGST of Rs.10,11,50,216/- each) under Section 74 (9) read with Section 122 of the CGST Act, 2017 read with corresponding provisions of Delhi GST Act, 2017 and IGST Act, 2017.”
The case of the Petitioner is that it is engaged in the manufacture and supply of reagents, consumables and calibrators which are used for diagnostic testing. The customers of the Petitioner include laboratories and hospitals to whom the Petitioner provides reagents along with laboratory equipment.
As per Mr. Lakshmikumaran, ld. Counsel for the Petitioner, pure reagents attract a tax at 5% or 12% depending upon the type of reagents. However, the GST Department has proceeded on the basis that all the supplies provided by the Petitioners are ‘mixed supply’ under Section 2 (74) of the Central Goods and Services Tax Act, 2017 and hence, the highest rate of 18% has been imposed. The Petitioner is aggrieved by the said categorisation, and it is the Petitioner's case the same would constitute ‘composite supply’.
The submission on behalf of the Petitioner is that there are two categories This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/10/2025 at 12:18:26 of supplies made by the Petitioner: i) Only reagents; ii) Reagents along with instruments.
The first category constitutes a substantial portion of the supplies and hence, they could not have been categorized as ‘mixed supplies’. Even if the GST Department’s case is taken at its best, the mixed supplies rate would only apply qua the second category of supplies.
Thus, the question raised in the present petition is whether the supply of reagent with equipment would constitute ‘composite supply’ or ‘mixed supply’ and what would be the rate of tax that would be attracted in such a case. Secondly, whether the demand in respect of the first category of supplies is even tenable.
In the opinion of this Court, this issue would have to be decided by the Appellate Authority, as there would be a factual examination that would be required. In addition, the impugned order itself is an appealable order under Section 107 of the CGST Act.
It is noted that the impugned order is dated 7th January, 2025 and the writ petition was stated to have been first filed on 4th April, 2025, but was returned under defects and has been refiled on 24th September, 2025. This in the opinion of this Court would be at best a delay in refiling.
The Petitioner is accordingly relegated to avail of the appellate remedy under Section 107 of the CGST Act and file the appeal by 15th November, 2025 along with the requisite pre-deposit. If the same is filed within the said time, the matter would be heard on merits and shall not be dismissed on the ground of limitation.
A personal hearing shall be given by the Appellate Authority and a This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/10/2025 at 12:18:26 reasoned order shall be passed in accordance with law.
Petition is disposed of in these terms. All pending applications, if any, are also disposed of. PRATHIBA M. SINGH, J. SHAIL JAIN, J. SEPTEMBER 26, 2025/Rahul/msh This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/10/2025 at 12:18:26
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.