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2019 (9) TMI 986 - AAR - GSTClassification of goods - Dialyzer - to be treated as ‘Disposable sterilized dialyzer or micro barrier of artificial kidney’ as mentioned under Entry No. 255 of Schedule I to N/N. 1/201 7-CentraI Tax (Rate), dated 28 June 2017 and N/N. 1/2017-lntegrated Tax (Rate), dated 28 June 2017? - Whether classified under Chapter 90 (i.e. Tariff item 9018 90 3 1) or Chapter 84 (i.e. Tariff item 8421 29 00)? The Applicant is of the view that the product “Dialyzer” merits classification under Tariff item 9018 90 31 and consequently as “Disposable sterilized dialyzer or micro barrier of artificial kidney’ under Entry No. 255 of Schedule I to the Rate Notifications. HELD THAT:- In medical parlance, dialysis is considered to be the process of removing excess water, solutes- and toxins from the blood in people whose kidneys can no longer perform these functions naturally. A Dialysis machine is a machine used in dialysis that filters a patient’s blood to remove excess water and waste products when the kidneys are damaged, dysfunctional, or missing. The dialysis machine consists of plastic tubing that carries the removed blood to the ‘dialyser’ which is a bundle of hollow fibers that forms a semipermeable membrane for filtering out impurities. In the dialyser, blood is diffused with a saline solution called dialysate, and the dialysate is in turn diffused with blood. When the filtration process is complete, the cleansed blood is returned to the patient. Dialyzers are not used for filtration or purification of any liquids or gases. Chapter Heading 9018 covers Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientographic apparatus, other electromedical apparatus and sight-testing. Renal dialysis equipment (artificial kidneys, kidney machines and dialyzers) are classified under CSH 9018 90 31 - From the submissions made by the applicant, it is found that the subject product does not make up a Renal Dialysis Equipment but it can very definitely be considered as a part of a renal Dialysis Equipment. Since a dialyzer is used in performing the functions of a kidney, it goes without saying that it is required to be sterilized and free from contamination. We are also of the opinion that given the importance of the subject product in performing the work of a kidney albeit externally, the same should not be reused. The table above mentions that the sterilized dialyzer should be disposable i.e for a single use purpose only - In normal circumstances and in all situations such dialyzers should not be reused and in fact are not being reused which therefore implies that they are disposed of after a single use. The subject product, namely, ‘dialyzers’ are used in sterilized form and are also disposable after single use - the same will be covered under Entry No. 255 of Schedule I to the Rate Notifications.
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