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2018 (12) TMI 1276 - APPELLATE AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANAClassification of goods - rate of tax - Agricultural Soil testing Minilab and its Reagent Refills - whether classifiable under Tariff heading 9027 of the GST Tariff or otherwise? - N/N. 2/2017 of Section 6, sub-Section (1) of the Act. Classification of the Minilab - Held that:- By the nature, functions and usage etc., the Mridaparikshak instrument / Minilab falls within the specific phrase “instruments for physical or chemical analysis” used in Heading 9027 - this classification would be applicable under the primary criterion ‘according to the terms of Headings’ vide Rule I of the Interpretative Rules. Heading 9027 in the Tariff mentions the names of only some such instruments for physical / chemical analysis illustratively, as referred earlier. As such, the Adv. Ruling Authority was right in referring to the HSN Notes and in arriving at the conclusion basing on the specific mention therein of pH meter, Wet Chemical Analyser; which are used for the similar functions of measuring / determining the pH factor, inorganic / organic components etc., as done by the impugned Mridaparikshak / Minilab - Inasmuch as the Mridaparikshak / Minilab is found to be classifiable under Heading 9027, the plea of appellants for classifying them under Heading 8201 remains further negated by Note I (h) to Section XV which precludes instruments/apparatus of Section XVIII (under which Chapter 90 falls) from being classified under Section XV, which includes Chapter 82. Thus, Mridaparikshak-MiniIab is rightly classifiable under Heading 9027 of the Tariff as held by the Adv. Ruling Authority and not under Heading 8201 as claimed by the appellant. Classification of Refill Reagents - Held that:- Refill Reagents are not classifiable under the said Heading since these do not qualify to be considered as ‘Hand tools’ by any means. Appellants have also not put forth any separate grounds/contentions in support of their claim for classifying the Refill reagents under Heading 8201 - The appellants have, either in the grounds of appeal or further submissions, not disputed either the finding of the lower Authority that the Refill Reagents are solely or principally for use with the Mridaparikshak Minilab falling under Heading 9027 nor as to the application of Note 2 (b) of Chapter 90, for determining the classification - thus, the Adv. Ruling Authority’s decision of classifying Refill Reagents under Heading 9027 is correct and merits to be upheld. Whether the exemption entry Sl.No. 137 of Notification No. 2/2017-Central Tax (Rate) dated 28-6-201 7 is applicable to the impugned goods? - Held that:- The exemption is applicable to a sub-set from out of the broad category of “Hand tools” covered in Heading 8201. Since the impugned goods do not fall in the Heading itself, the exemption given in respect of a part of the Heading would not be applicable to them - the impugned goods are not covered by the entry SI.No. 137 in the exemption Notification as claimed by the appellant. The impugned goods are correctly classifiable under Heading 9027 of the Tariff; they are not classifiable under Heading 8201 ibid. Further the impugned goods are not eligible for the exemption vide entry Sl.No. 137 of the Notification No. 2/2017- Central Tax (Rate) dated 28-6-2017. Ruling:- The Advance Ruling pronounced vide TSAAR Order No. 02/2018 dated 30-052018 [2018 (6) TMI 465 - AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA] passed by the Telangana State Authority for Advance Ruling in re: appellant M/s. Nagarjuna Agro Chemicals Pvt. Ltd., Hyderabad is confirmed.
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