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2021 (9) TMI 1289 - AAAR - GSTClassification of goods - rate of tax - Micro-manipulator system - Intracytoplasmic Sperm Injection (ICSI) with ejaculated, epidymal or testicular spermatozoa used in Assisted Reproductive Technology Procedures - classifiable under tariff heading 9018 or 9011? - HELD THAT:- Chapter Heading 9011 covers ‘compound optical microscope’ as used by amateurs, teachers etc. and those for industrial use or for research laboratories, whether or not they are presented with their optical elements (objectives, eyepieces, mirrors etc.). This Chapter Heading also include ‘Surgical microscopes’ for use by surgeons when operating on a very small portion of the body, in which their light sources result in independent light paths which provide a three-dimensional image. It has specifically been mentioned that this Chapter Heading excludes ‘Ophthalmic binocular- type microscope (heading 90.18). Chapter Heading 9018 covers a very wide range of instruments and appliances, which in the vast majority of cases are used only in professional practice (e.g. by doctors, surgeons, dentists, veterinary surgeons, midwives) either to make a diagnosis, to prevent or treat an illness or to operate etc. Instruments and appliances for anatomical and autoptic work, dissection etc. and for dental laboratories (under certain conditions) are also included in this Chapter Heading. It has specifically been mentioned that this Chapter Heading does not cover ‘Microscopes etc. of heading 9011 or 9012’ - The Explanatory Notes for Chapter Heading 9018 also provides that the group ‘Instruments and appliances for human medicine and surgery’ includes ‘Ophthalmic instruments’, which falls into various categories, including “Diagnostic instruments such as opthalmoscopes; binocular loupes with head bands and binocular type microscopes, consisting of a microscope, an electric lamp with a slit, and a head rest, the whole being mounted on an adjustable support, for the examination of the eyes; tonometers (for testing the intra-ocular tension) eye specula”. The ‘MM System’ is also known as ‘IVF technology’ in the medical world; that the ‘MM System’ is a device which is used to physically interact with a sample under a microscope, where a level of precision of movement is necessary which cannot be achieved by the unaided human hand and may typically consist of an input joystick (a mechanism for reducing the range of movement) and an output section with the means of holding a micro-tool to hold, inject, cut or otherwise manipulate the object as required; that mechanism for reducing the movement usually requires the movement to be free of backlash which is achieved by the use of kinematic constraints to allow each part of the mechanism to move only in one or more chosen degrees of freedom, which achieves a high precision and repeatability of movement, usually at the expense of some absolute accuracy - ‘MM System’ is a device used in ICSI procedure, IVF procedure or ART. It also appears that ‘MM System’ consists of above mentioned five main components / elements which include ‘inverted microscope’, ‘micro manipulator’ and ‘micro injector’. In case the ‘MM System’ is supplied in unassembled or disassembled form, still the classification will be the same in view of Rule 2(a) of General Rules for the interpretation of the CTA, 1975, which provides that ‘any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article; that it shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled - ‘MM System’ supplied by the appellant is appropriately classifiable under Chapter Heading 9018 of the CTA, 1975. Rate of Goods and Services Tax - HELD THAT:- As per N/N. 1/2017-Central Tax (Rate) dated 28.06.2017 and N/N. 1/2017-State Tax (Rate) dated 30.06.2017, ‘Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments’ falling under Chapter Heading 9018 attracts Goods and Services Tax of 12% vide Sr. No. 218 of Schedule II of the said Notifications. Therefore, ‘MM System’ supplied by the appellant are chargeable to Goods and Services Tax of 12%.
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