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2022 (8) TMI 970 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKAClassification of goods - Benefit of exemption from GST - rate of tax - parts & accessories suitable for use solely with the hearing aids - exemption by virtue of Sl.No.142 of 2/2017-CT(R) as amended from time to time - HELD THAT:- The hearing aids are covered under heading 9021, under 4-digit classification; Hearing aids, excluding parts and accessories are covered under 9021 40, under 6-digit classification; Frequency modulated hearing aid system used for hearing by handicapped persons in group situation are covered under 9021 4010, under 8-digit classification and remaining are covered as others under 9021 4090. Thus it is clearly evident that the heading 9021 40 covers only the hearing aids but not parts & accessories thereof. The parts & accessories of hearing aids are specifically covered under heading 9021 9010. Note 2(a) clearly specifies that parts and accessories which are goods included in any of the headings of this Chapter (90) or of Chapter 84, 85 or 91 (other than heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings. In the instant case, the parts & accessories of hearing aids are goods that are specifically covered under heading 9021 9010 and hence they merit classification in their respective heading i.e. 9021 9010. Also Note 2(b) implies that it covers only those other parts and accessories which can't be classified in terms of Note 2(a) - In other words Note 2(a) is applicable to the instant case and Note 2(b) has to be considered in case Note 2(a) is not applicable. Thus the parts & accessories of hearing aids are rightly classifiable under heading 9021 9010. The exemption is applicable only to supply of goods, the description of which is specified at column (3) of the schedule falling under the tariff item, sub-heading, heading & chapter as specified at corresponding entry at column (2). Thus the exemption is applicable only to the supply of goods described under column (3) and not to all the goods falling under the corresponding entry in column (2) - It is clearly evident from the entry no.142 that the said entry covers only goods described as “hearing aids” and not the “parts & accessories of the hearing aids”. Thus the entry is not applicable to the instant case. It is clearly evident that hearing aids are excluded from entry no.221 of Schedule II, which attracts GST rate of 12%. The only entry that covers the parts & accessories of hearing aids is 453 of Schedule III, which attracts the GST @ 18%.
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