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TMI Blog2021 (1) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry 257 of Schedule-I and General Entry at Serial No.218 of Schedule-II of Notification No.01/2017-Central Tax (Rate), it is evident that Urine collection bags are specifically covered under the entry at Serial No.E(8) of List 3 of Entry 257 of Schedule I whereas the entry at Sr.No.218 of Schedule-II is a general entry that covers all instruments and appliances used in medical, surgical, dental or Veterinary sciences including scientigraphic apparatus, other electro medical and sight-testing instruments and the GST liability under the said heading is 12% (6% SGST + 6% CGST). 2. The applicant have further stated that for the purpose of classification and the determination of applicable rate for a supply of goods under the CGST Act, 2017, the various Chapter Headings, sub-headings, Interpretative Rules and Chapter Notes under the Customs Tariff Act, 1975 has been adopted by Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 and the explanation appended to the above Notification reads as follows: "(iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entigraphic apparatus, other electro medical and sight-testing instruments and the GST liability under the said heading is 12% (6% SGST + 6% CGST). Therefore, applying the principle under Rule 3 of the General Rules of Interpretation of the First Schedule to the Customs Tariff Act, 1975, the heading which provides the most specific description shall be preferred to headings providing a more general description. Hence the Urine collection bag falling under HSN Code 9018 are covered under Serial No.E(8) of List 3 of Entry 257 of Schedule I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%. 3. The applicant has submitted letter dated 22.07.2020 vide which they have attached the following documents: (i) Doctor's opinion regarding usage of Urine Collection Bag (from 7 doctors). (ii) Photocopies of 2 invoices in respect of Urine Collection Bags. (iii) Catalogue of National Healthcare. (iv) Annexure-A showing list of raw materials used in manufacture of Urine Collection Bags. (v) Annexure-B containing flow chart regarding manufacture of Urine Collection Bags. (vi) Annexure-C showing use of Urine Collection Bags. (vii) Balance sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 110 ml.) with Y-connector Luer Lock, Surgical Gloves, Medical Urine Bags, Cord Clamp, Infusion Set Non Vented with Y-Connector and Luer Lock, Infusion Set Vented with Y-connector and Luer Lock, Blood Transfusion Set Non Vented, Blood Transfusion Set Vented and IV set. 3.5 As per the submission of the applicant, the raw materials used in the manufacture of Urine Collection Bags are PVC sheets, ink, PVC tube, closure, Hanger or PP stick, cotton thread, connector cover, packing pouch, gross packing pouch and corrugated box. As per the flow chart given by the applicant, the process of manufacture of Urine Collection Bags is as under: (i) Raw materials received from store. (ii) High frequency welding of PVC sheet. (iii) Bag screen printing by ink. (iv) Assembly of non return valve and outlet. (v) Welding of non reurn valve and outlet. (vi) Bag leak test by air. (vii) Tube, connector cover, hanger assembly with bag. (viii) Urine Collection Bag pouch packing. (ix) Urine Collection Bag pre inspection. (x) Urine Collection Bag sterilization. (xi) Secondary inspection and box packing. (xii) Transfer to finish goods supply for dispatch. 3.6 As per Annexure-C submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f many kinds of medical devices including Urine collection bags falling under HSN Code 90189099 which are covered under Serial No. Entry (8) of List 3 of Entry 257 of Schedule-I of Notification No:01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%. They have also stated that the subject goods are for disabled in the nature of Urine collection bags falling under HSN Code 90189099 and corresponding Column (3) to Entry No.257 of Schedule-I of the aforementioned Notification reads as "Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule". He has stated that on a plain reading of entry at Serial No. E(8) of List 3 of Entry 257 of Schedule-I and General Entry at Serial No.218 of Schedule-II of Notification No.01/2017-Central Tax (Rate), it is evident that Urine collection bags are specifically covered under the entry at Serial No. E(8) of List 3 of Entry 257 of Schedule I, whereas the entry at Sr.No.218 of Schedule-II is a general entry that covers all instruments and appliances used in medical, surgical, dental or Veterinary sciences including scientigraphic apparatus, other electro medical and sight ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017-18 and 2018-19. 7.2 The applicant has put forward the following question on which advance ruling is required: "Whether the goods supplied by the applicant are covered under Serial No.E(8) of List 3 of Entry 257 of Schedule I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the 'CGST Act, 2017') and corresponding Notifications issued under the Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as the 'GGST Act, 2017) and the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the IGST Act, 2017) OR Serial No.218 of Schedule-II of the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST rate of 12%." 8. On going through the submissions given by the applicant as well as the documents submitted by them, we find that they have mentioned that the product 'Urine collection bag' manufactured and supplied by them, which are for the disabled would be correctly classifiable under Entry No.257 in Schedule-I of NotificationNo.01/2017-Central Tax (Rate) dated 28.06.2017as there is a specific entry of their product at Sr.No.8 of Lis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter is attached to a bag to collect the urine. The other end is inserted into the urethra of the individual and guided through it until it enters the bladder and urine starts to flow. If the individual is not confined to bed, the drainage bag can be worn strapped to his/her leg and hidden under the clothing." 10.1 From the above, it can be confirmed that the 'Urine collection bags' is indeed a device which can be used in the field of medical sciences only. We are therefore required to find out whether the said product falls under the Heading 9018 or otherwise. In order to examine this aspect, we would be required to go through the Heading 9018 as appearing in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), which reads as under: 9018 INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL OR VETERINARY SCIENCES, INCLUDING SCIENTIGRAPHIC APPARATUS, OTHER ELECTROMEDICAL APPARATUS AND SIGHT-TESTING INSTRUMENTS Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters): 9018 11 00 -- Electro-cardiographs 9018 12 -- Ultrasonic scanning apparatus: 9018 12 10 --- Linear ultrasound scan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ---- Other: 9018 90 91 ---- Hilerial or venous shunts 9018 90 92 ---- Baby incubators 9018 90 93 ---- Heart-lung machines 9018 90 94 ---- Defibrillators 9018 90 95 ---- Fibrescopes 9018 90 96 ---- Laproscopes. 9018 90 97 ---- Vetrasonic lithotripsy instruments 9018 90 98 ---- Apparatus for nerve stimulation 9018 90 99 ---- Other 10.2 Also, the explanatory notes to the Harmonized Commodity Description and Coding System with respect to Sub-heading 9018 (which contains an illustrative list of all the products falling under the sub-heading No.9018) and may help us in understanding the products covered under the said heading are described thereunder. Portions of notes pertaining to Dental instruments and appliances and Veterinary instruments and appliances have not been described, as 'Urine collection bags' would not, by any stretch of imagination, be covered under these headings. Further, parts and accessories have also not been described as they pertain to objects like electro-diagnostic ultrasonic scanning apparatus (SH-9018.12), electro-diagnostic magnetic resonance imaging apparatus (SH-9018.13) and electro-diagnostic apparatus (SH-9018.14). The explanatory no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, dividers for measuring cerebral lesions, obstetrical pelvimeters etc. It should also be noted that a number of the instruments used in medicine or surgery (human or veterinary) are, in effect, tools (e.g. hammers, mallets, saws, chisels, gouges, forceps, pliers, spatula, etc.), or articles of cutlery (scissors, knives, shears etc.). Such articles are classified in this heading only when they are clearly identifiable as being for medical or surgical use by reason of their special shape, the ease with which they are dismantled for sterilisation, their better quality manufacture, the nature of the constituent metals or by their get-up (frequently packed in cases or boxes containing a set of instruments for a particular treatment: childbirth, autopsies, gynaecology, eye or ear surgery, veterinary cases for parturition etc.. The instruments and appliances classified here may be equipped with optical devices; they may also make use of electricity, either as motive power or for transmission, or as a preventive, curative or diagnostic agent. This heading also covers instruments and appliances operated by laser or other light or photon beam processes and ultrasonic instruments and applia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, strabometers, keratometers, keratoscopes, eye measurement meters designed to measure the distance between the pupils, trial cases (of lenses) and trial frames (for carrying the trial lenses), optometric scales, test charts. However, optometric scales and charts on paper, paperboard or plastics, used for colour perceptions are excluded. (Chapter 49). This heading also covers electrically heated compresses for the eyes, and electromagnets designed for removing metallic particles from the eyes. (D) Ear instruments e.g. auriscopes. However tuning forks, whether or not for medical use are excluded (heading 92.09). (E) Anaesthetic apparatus and instruments (Face masks, face-piece harness, intratracheal tubes etc.). (F) Instruments for nose, throat or tonsel treatment: clamps (for straightening the nasal cartilage); transimullation apparatus (for sinuses and nasal fossae); tonsilotones, guillotines; direct laryngoscopes, laryngeal brushes etc. (G) Pharyngeal, oesophageal, stomach or tracheotomy instruments: oesophagoscopes, bronchoscopes, stomach pumps, intubation tubes etc. (H) Urinary canal or bladder instruments: urethromes, lithotrity instruments, bladder grid suction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd of it's functioning. It includes apparatus incorporating a scintillation counter the data from which is converted into analogue signals for the purpose of making medical diagnosis (e.g. gamma camera, scintillation scanner). (V) OTHER ELECTRO-MEDICAL APPARATUS: This heading also covers electro-medical apparatus for preventive, curative or diagnostic purposes, other than X-ray etc. apparatus of heading 90.22. This group includes: (1) Electro-diagnostic apparatus which include: (i) Electro-cardiographs (apparatus, which by means of currents produced by contractions of the cardiac muscles, records heart movements as electrocardiograms.). (ii) Phonocardiographs (specially designed to register heart noises as phonocardiograms; they may also be used as electrocardiographs). (iii) Cardioscopes (used in conjunction with the two preceding instruments to enable simultaneous observation of cardiograms and phonocardiograms) (iv) Rheocardiographs(electrical apparatus for measuring changes of electrical resistance due to the functioning of the heart). (v) Electroencephalographs (for examination of the brain). (vi) Electrosphygmographs (for registering artificial pressure and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lamps though infra-red apparatus may be fitted with heating resistances or heating panels with reflectors. (9) Artificial incubators for babies: Basically these consist of a transparent cubicle of plastics, electrical heating equipment, safety and warning devices, and oxygen and air filtering and regulating apparatus. In most cases they are mounted on a trolley and have built-in baby scales. Cases containing electrodes or other devices for use with the apparatus described above are also included in this group. This heading also excludes prenatal listening apparatus for non-medical use of heading 85.18 (see the explanatory notes to that heading)." 10.4 We have gone through the above explanatory notes to the Harmonized Commodity Description and Coding System with respect to Sub-heading 9018, which also contains an illustrative list of the instruments/apparatus/ appliances listed therein covered under the Sub-Heading No.9018 but could not find any specific mention of 'Urine Collection Bag' in the said list. However, from a bare reading of the Chapter Heading 9018, it can be derived that it covers 'Instruments and appliances used in Medical, Surgical, dental or Veterinary Sciences ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Com- passes and Spar Wheels (7) Electronic measuring equipment, such as calipers, micrometers, comparators, gauges, gauge blocks Levels, Rules, Rulers and Yardsticks (8) Drafting, Drawing aids, tactile displays (9) Specially adapted clocks and watches (B)(1) Orthopaedic appliances falling under heading No. 90.21 of the First Schedule (2) Wheel chairs falling under heading No. 87.13 of the First Schedule (C) Artificial electronic larynx and spares thereof (D) Artificial electronic ear (Cochlear implant) (E) (1) Talking books (in the form of cassettes, discs or other sound reproductions) and large-print books, braille embossers, talking calculators, talking thermometers (2) Equipment for the mechanical or the computerized production of braille and recorded material such as braille computer terminals and displays, electronic braille, transfer and pressing machines and stereo typing machines (3) Braille paper (4) All tangible appliances including articles, instruments, apparatus, specially designed for use by the blind (5) Aids for improving mobility of the blind such as electronic orientation and obstacle detectbn appliance and white canes (6) Technical aids ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Urine Collection Bags, it is found that the Urine Collection Bags manufactured and supplied by the applicant are: (i) used as assistive devices for bedridden patients and is a medical device used to empty the bladder when a patient is unable to do so naturally. (ii) used in patients in whom there is case of retention of urine after catheterization (iii) used in post-operative cases where patient requires 1-3 days rest in bed after catheterization (iv)used in patients where there is obstruction in urinary tract in acute and chronic cases (v) used in case of old or aged people confined to bed, to prevent soaking of bed. Further, as per the opinion of the doctors, Urine Collection Bags usually have a drainage bag to capture the urine and for bedridden patients, the bag may drape over the side of the bed; that the bag can be emptied into the toilet as and when needed and that intermittent catheterization involves inserting and removing the catheter several times a day and this eliminates the need to wear a continuously draining catheter. However, we find that 'Urine Collection Bags' are assistive devices which are also used by people other than those who are disabled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as the criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b) , they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration." 11.2 As per 3(a) above, the heading which provides the most specific description shall be preferred to headings providing a more general description. In this case, we find that the entry No.257 of Schedule-I of Notification No.01/2017-Central Tax(Rate) dated 28.06.2017 provides a more specific description of the product manufactured and supplied by the applicant as there is a specific entry of 'Urine Collection Bag' at Entry No.8 of List 3(E) appended to the said Schedule whereas the Entry No.218 in Schedule-II of afor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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