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2022 (3) TMI 1300 - AAR - GSTClassification of goods - rate of GST - women wellness products - Cramp comfort - to be classified under Chapter Heading 3004 attracting 12% GST under serial no. 63 or Chapter Heading 3005 attracting 12% GST - Applicability of serial no. 64 in Schedule II of Notification 01/2017 - Central Tax (Rate) dated 28 June 2017 and under Serial No: 63 or 64 of Schedule II of Notification G.O. (Ms) No. 62 (NO.II(2)/CTR/532(D-4)/2017) TNGST (Rate), dated 29.06.2017 - HELD THAT:- The applicant in August 2020, launched ‘Cramp Comfort’, which is a heat patch used by women during period pain. They claim that the product has prophylactic uses and is used as an alternative therapy to manage their menstrual discomfort/ secondary dysmenorrhea. In the instant case, the applicant’s product ‘Cramp Comfort’ works by self-heating and for pain relief during the menstrual cycle for women. The product just relieves the pain in the abdomen caused due to menstrual cycle. From the submissions of the applicant, it is seen that the active ingredients used in the product are Water absorber, Iron Powder, Activated charcoal, Vermiculite, Sodium chloride in specified doses, though the dosages of the components are not certified by any controlling agencies. The applicant has contended that product is for dysmenorrhea as a therapeutic use and the word ‘Medicament’ should not have restricted meaning but include products for Therapeutic/Prophylactic use. There are many products which are naturally occurring and have therapeutic or prophylactic properties, when used in proper proportions and for particular time periods. The products like neem, turmeric, garlic etc.. all have medicinal value but the same is not considered as medicaments, when they are used as such, without subjecting to any chemical modification. Therefore, merely because a product possesses certain natural therapeutic/prophylactic properties, it cannot be said to fall under the classification of medicaments. In the case at hand, it is not established that the product has been classified as a device specified by the Central Government in any notification and therefore reliance on Section 3(b)(iv), to claim that the product is a ‘Medicament’ do not help them. It is further seen that the applicant claims the product to be a drug as per Section 3(b) (i), considering the material part of the said section to be ‘substances intended to be used for or in the treatment’. It is their claim that the predominant use of the product is to alleviate the pain in the abdomen caused due to Dysmenorrhea and therefore to be considered as a ‘drug’ - it is evident that the substances intended to be used for treatment of a disorder is a ‘drug’ as per this provision. In the case at hand, the treatment for secondary dysmenorrhea are non-steroidal anti inflammatory drugs(NSAIDs) and the product helps only in reducing the pain and has not been established to be a recommended treatment for the disorder. It is seen that the product though not notified as a ‘medical device’ as required Under Section 3(b)(iv) of Drugs and Cosmetics Act 1940, is still marketed as Self-heating Pain relief Patch’ and can be worn anywhere for alleviating the pain. Therefore, the product merits classification under CTH 3005 as the Customs Tariff is aligned with the HSN. Further, on perusal of the invoices furnished by the applicant, the applicant’s product is currently classified under HSN 3005 which is evident from the invoice raised in November’2021. The product Comfort patch is to be classified under HSN 3005 and the applicable CGST is @6% as per serial Number 64 in schedule II of Notification 01/2017 -Central Tax (Rate) dated: 28.06.2017 and applicable SGST is @ 6% as per Serial No. 64 of Schedule II of Notification G.O. (Ms) No.62 (No. II(2)/ctr/532(D-4)/2017) TNGST (Rate), dated: 29.06.2017.
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