TMI Blog2018 (6) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... rther, there is a similar entry under Sl No. 578 - List 30 Entry E(9) of Notification No. 5012017 - Customs dated 30.06.2017 where under the effective rate of Basic Customs Duty is Nil. On a plain reading of entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I and entry at Serial No. 221 of Schedule II of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017, it is evident that joint replacements are specifically covered under the entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I whereas the entry at Sl. No. 221 of Schedule II is a general entry that covers artificial parts of body. Therefore, applying the principle under Rule 3 of the General Rules of Interpretation of the First Schedule to the Customs Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HSNCode 90213100 and are included under Schedule I. The applicant further stated that the items mentioned in the Annexure are included under Schedule I; Serial No.257 - List 3E(9) - Implants for handicapped patients, joint replacements etc and the rate of GST is 5%. As per Order No. C7 4264/06/CT dated 14.12.2007 of the erstwhile KVATAct, these items i.e.; Total Knee Implants and Total Hip Implants were falling under First Schedule of the KVAT Act and hence, were exempt from tax. 3. A personal hearing was granted to the applicant on 17.05.2018. Shri. Lalji Vijayan, Chartered Accountant represented the applicant in the personal hearing and made the following written subniissions on behalf of the applicant. 4. The applicant is, inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. Schedule with identical entry is notified under SGST Act by G.O. (P) No. 6412017/TAXES dated 30.06.2017. On the contrary, Serial No. 221 of Schedule II attracting 12%GST is a general entry with the following description; Splints and other fracture appliances, artificial parts of the body, other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens [other than orthopaedic appliances, such as crutches, surgical belts and trusses, hearing aids}. JJ Entry 221 of Schedule II is a generic and wider entry covering items like fracture appliances, artificial parts of the body, etc. 5.. For the purpose of classification and the determination of applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication shall be effected as follows; (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. In view of the above, implants for joint replacement is clearly and most specifically covered under Sl No. E(9) of List 3 of Entry 257 of Schedule I attracting 5%GST. Further, there is a similar entry under Sl No. 578 - List 30 Entry E(9) of Notification No. 5012017 - Customs dated 30.06.2017 where under the effective rate of Basic Customs Duty is Nil. The entry is reproduced below; Sl. No. Chapter/Heading/Sub -Heading/Tariff Item Description of goods (1) (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under HSN Code 1 Chapter Sub-Heading 90213100 - Artificial Joints of the Customs Tariff Act, 1975 is covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 - Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%or Serial No. 221 of Schedule II of the Notification No. 0112017 - Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 12%. 9.. On a plain reading of entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I and entry at Serial No. 221 of Schedule II of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017, it is evident that joint replacements are specifically covered under the entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I wherea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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