Nearly five years after oxygen concentrators were rushed into India to save lives during the Covid-19 pandemic, people who imported them are now receiving Customs notices demanding lakhs in unpaid duty.
Among those affected is Bengaluru-based civic activist Vinay Kumar, who received a consultative letter from the Customs Audit Commissionerate in Mumbai in March this year. The letter alleges that a consignment of oxygen concentrators imported in May 2021 was wrongly classified under a customs tariff heading that attracted no duty during the pandemic. Customs has demanded Rs 35.38 lakh, arguing that the goods should instead have been classified as imports for personal use, attracting customs duty and GST.
The letter, dated March 5, 2026, was issued following a post-clearance audit. It states that the oxygen concentrators were cleared through Mumbai's Air Cargo Complex in May 2021 using a default Import Export Code meant for personal imports. According to customs authorities, the goods were classified under tariff heading 90192090 and cleared with nil Basic Customs Duty, Social Welfare Surcharge and Integrated GST. The audit concluded that the consignment should have been classified under tariff heading 9804, applicable to goods imported for personal use which attracts basic customs duty of 35 per cent, social welfare surcharge of 10 per cent, and IGST of 28 per cent, resulting in a short levy of duty amounting to Rs 35,38,945.
The Customs department has asked for voluntary payment of the alleged shortfall along with applicable interest within 15 days or a detailed response explaining why the amount should not be recovered. The letter also notes that a formal show-cause notice may still be issued under the Customs Act, 1962.
Vinay said he responded to the consultative letter on March 18 and submitted supporting documents. However, he says there has been no acknowledgement or response from authorities since then.
"We thought we responded and that's it, nothing else to do," he told TNM. "But then when I noticed that other people are also facing this, I reached out for help on social media."
The oxygen concentrators were imported during the peak of India's second Covid wave in 2021, when hospitals across the country were struggling with severe oxygen shortages. At the time, the Union government waived customs duties and health cess on oxygen and oxygen-related equipment for three months to ease shortages and improve access to life-saving supplies.
The government had also separately exempted customs duties and health cess on oxygen and oxygen-related equipment imported for personal use until July 31, 2021, amid soaring demand during the second wave.
The exemptions covered a wide range of oxygen equipment, including oxygen concentrators, oxygen cylinders, oxygen generation plants, storage systems and ventilators. The Centre also directed customs authorities to facilitate quick clearance of such equipment.
In May 2021, Vinay launched a public fundraising campaign to procure oxygen concentrators from Germany and United States of America (USA). Through the initiative, more than 700 concentrators were brought into India and distributed free of cost across Karnataka, Andhra Pradesh and other states during the pandemic. Social media updates posted at the time documented the arrival of the devices in Bengaluru and their subsequent deployment to hospitals, health centres and patients across multiple states.
According to Vinay, the devices were never imported for personal use. "We had clearly mentioned that it is not for personal use," he said. He added that detailed records were maintained throughout the operation. "Even today we have 100% traceability of every device. We have proof of giving it for free, we have signatures from every beneficiary who has taken it," he said. Some devices were later returned after use, while others were permanently donated. According to him, every concentrator was barcoded to enable tracking.
Vinay said all supporting documentation relating to distribution was shared with authorities in 2021 itself. He suspects the present scrutiny may be linked to a periodic audit. "I think the audit happens once in five years and somehow they have now flagged this and we don't know why," he said.
His concerns grew after he came across online discussions suggesting that others who imported oxygen concentrators during the pandemic had received similar communications from Customs authorities.
A Reddit user recently posted about receiving a show-cause notice over oxygen concentrators imported in 2021 and donated free of cost to public health institutions. According to the post, Customs authorities reclassified the imported devices as goods for personal use and demanded around Rs 14 lakh, including differential duty and penalties.
The individual stated that the concentrators had been declared as "Not For Sale" and intended for free distribution. The post claimed that while evidence of donations to health institutions existed, Customs authorities objected that a certificate from a designated state nodal officer had not been submitted within the prescribed period after import.
Speaking about the Reddit post, Vinay said authorities said that an exemption certificate from a designated nodal officer was required. However, he said that in his case this documentation had been provided at the time.
"Their objection is that an exemption certificate was required from a nodal officer. But we have the letter from the nodal officer, we had immediately given it," he said.
Vinay said the absence of any official clarification has added to the uncertainty. He has also attempted to contact officials associated with the exemption process but says he has received no response.
A tax lawyer who reviewed the consultative letter told him that the matter remains open and its outcome is uncertain. While the consultative letter itself is not a show-cause notice, Vinay said he was advised that further proceedings could follow if Customs authorities are not satisfied with the explanation provided.
"It is ridiculous that after five years this has come up," Vinay said. "Maybe it is the audit that happens every five years. Maybe it is miscommunication between departments. It must also be noted that this was five years ago and Covid was an exceptional situation and many new rules were made. We still don't know the exact reason."
