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2020 (9) TMI 586 - AAR - GSTClassification of goods - rate of tax - Micro-manipulator system which is Itracytoplasmic Sperm Injection (ICSI) with ejaculated, epidymal or testicular spermatozoa used in Assisted Reproductive Technology Procedures - HELD THAT:- In the instant case, as submitted by the applicant, the micromanipulators are used to carry out the procedure of invitro fertilization (IVF) under a microscope. From a plain reading of the procedure of IVF described by the applicant in his submission (please refer para-4), it appears that the entire procedure needs precision and perfection for which a microscope with extremely powerful objective lenses and high magnification would be required. As per the explanatory notes mentioned above, the Compound Optical Microscope consists of an objective designed to produce a magnified image, an eyepiece which further magnifies the observed image, has a provision to illuminate the object from below (by means of a mirror illuminated by a light source) and a set of condenser lenses which directed the beam of light onto the object. Thus, the micromanipulator would be rightly classified under the head ‘Compound Optical Microscope’ falling under Sub-heading 9011. The said product would be rightly classifiable as ‘Surgical microscope’ (Tariff item No.90118000) under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) covered under the Sub-heading “Compound optical microscopes, including those for photomicrography, cinephotomicrography or microprojection. Whether the product ‘micromanipulator’ finds mention under sub-heading 9018 for which we would be required to go through the sub-heading 9018 as appearing in the First Schedule to the Customs Tariff Act, 1975? - HELD THAT:- We have gone through the above explanatory notes to the Harmonized Commodity Description and Coding System with respect to Sub-heading 9018 (which covers all the products falling under the sub-heading No.9018). We have also gone through the entire list of all the instruments/apparatus/appliances listed therein covered under the Sub-heading No.9018. The product ‘micromanipulator’ does not find mention in the said list. Now, since micromanipulator does not appear in the list of instruments/apparatus/appliances listed above, it can be safely concluded that the said product is not classified/ classifiable under Sub-heading No.9018 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Thus it cannot be inferred on the basis of a general entry in the Sub-heading ‘Instruments and appliances used in medical science’ that a product which the applicant construes as an instrument/ appliance used in the field of medical science should find a specific entry within that sub-heading - thus, the product ‘micromanipulator’ is rightly classified under the Sub-heading 9011 - Compound optical microscopes, including those for photomicrography, cinephotomicrography or microprojection. Thus, ‘micromanipulator system’ falls under the Tariff item No.9011 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). The same is covered under Entry No.184 of Schedule-IV of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 upto 14.11.2017 and covered under Entry No.411F of Schedule-III of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 (as amended) from 15.11.2017 onwards. The rate of GST applicable would be 28% upto 14.11.2017 and 18% GST with effect from 15.11.2017.
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