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TMI Blog2020 (1) TMI 1385X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for advance ruling before this Authority seeking ruling on the following issue: 1.2 Whether "LABORATORY REAGENT" is classifiable under Tariff Heading 38220090 at S.No.80 of Schedule II or as "Goods which are not specified in Schedule I, II, IV, V or VI" at SI. No. 453 of Schedule III under the CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017 (as amended) and Notification No. 35/2017- State Tax 2 dated 30.06.2017 (as amended). 2. Submissions made by the Applicant: 2.1 The Applicant is engaged in the business of importing and supplying the laboratory reagents to Government Research Institutions for scientific and laboratory research purposes. The Applicant has been importing the reagents under Tariff Heading 3822 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ising Department, has observed that the laboratory reagents classified under Tariff Heading 3822 for customs purposes cannot be classified under the same Tariff head for the purpose of levy of IGST. As per the Customs Appraising Department S.No.80 of Schedule II to the CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017 describes "All diagnostic kits and reagents" which covers only diagnostic reagents and not laboratory reagents. According to them, IGST should be charged @18% under the residuary S.No. 453 of the Schedule III of CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017, "Goods which are not specified in Schedule I, II, IV, V or VI". 3. Applicant's interpretation of law and facts: 3.1 Chapt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is important to read explanation to the above notification. Explanation to CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017 which very clearly states as under: Explanation. - (1) In this Schedule, tariff item, heading, sub-heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of above table. The organisation and scheme of Customs tariff heading 3822 demo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of HPL Chemicals Ltd.-vs.-Commissioner of Central Excise, Chandigarh, 2006 = 2006 (4) TMI 1 - SUPREME COURT wherein it was held that classification of goods is a matter relating to chargeability and the burden of proof is squarely upon the Revenue. If the Department intends to classify the goods under a particular heading or sub-heading different from that claimed by the assesse, the department has to adduce proper evidence and discharge the burden of proof. It was also held that since the goods were covered by a specific heading, in that case Heading No. 25.01, the same could not be classified under the residuary heading. Rule 3 (a) of the Interpretative Rules was referred to and the Supreme Court reiterated that the Heading which prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the comments of the Jurisdictional Officer were also sought. The comments of the Jurisdictional Officer have been perused and placed on file. The additional submissions dated 09.01.2020 made by the applicant have also been perused and placed on file. In the additional submission, the applicant has contended that Entry No. 80 of Schedule II of rate Notification reads "All diagnostic kits and the reagents". The expression "and" is conjunctive and as such the term reagents has to be treated separately. The applicant further adds that there is no specific exclusion or qualification for the term reagents used in Entry No. 80 of Schedule II of rate Notification which leads to conclusion that the Entry covers the reagents which may be either use ..... X X X X Extracts X X X X X X X X Extracts X X X X
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