TMI Blog2021 (7) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... s which are predominantly used in food testing lab or in the field for testing of processed and unprocessed food. Hence, they do not fall under any of the sub - headings / tariff items under Heading 3002 or 3006 and therefore, they are appropriately classifiable under Customs Tariff Heading 3822 00 90. The description in the entry at SI No. 80 of Schedule II of Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017, is All diagnostic kits and reagents . Hence, it is evident that all reagents falling under Customs Tariff Heading 3822 are covered under the entry at SI No. 80 of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017. Thus, the laboratory reagents for rapid testing of foods safety parameters supplied by the applicant is appropriately classifiable under Customs Tariff Heading 3822 00 90 and is liable to GST at the rate of 12% as per entry at SI No. 80 of Schedule II of N/N. 01/2017 Integrated Tax (Rate) dated 28.06.2017. - KER/106/2021 - - - Dated:- 25-5-2021 - SHRI. SIVAPRASAD.S, IRS SHRI. SENIL A.K. RAJAN MEMBER Authorized Representative : Shri. Prabhat B.K, Chartered Accountant M/s. Neogen Food and Animal Security (India) Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 80 of the 2nd Schedule of the IGST Notification No. 01/2017- Integrated Tax (Rate) dated 28-06-2017 (as amended) provides IGST rate to the goods as under: 2nd Schedule-12% SI. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods 80 3822 All diagnostic kits and reagents Further, entry at SI No. 453 of 3rd Schedule, a residuary entry, provides applicable rate of GST at 18% on all goods that are not specified in Schedule I, II, IV, V or VI. The relevant entry reads as follows: 3rd Schedule-18% SI. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods 453 Any chapter Goods which are not specified in Schedule I, II, IV, V or VI. 4.3. They have filed this application seeking clarity on whether the laboratory reagents classifiable under the Tariff Item 3822 00 90 shall be covered under entry at SI No. 80 of Schedule II to the Notification No. 01/2017-Integrated Tax (Rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicant was granted opportunity for personal hearing on 06.01.2021. The authorised representative of the applicant attended the personal hearing. He reiterated the contentions made in the application and requested to issue the ruling on the basis of the submissions made in the application. Subsequent to the hearing the applicant produced copy of Bill of Entry evidencing that the products imported by them were classified under Customs Tariff Heading 3822 by the Customs authority at Cochin International Airport. 8. Discussion and Conclusion: 8.1. The matter was examined in detail. The issues to be decided are the classification and rate of GST of the laboratory reagents for rapid testing of food safety parameters supplied by the applicant. The laboratory reagents are predominantly used in food testing lab or in the field for testing of processed and unprocessed food, juices, cereal, wheat, rice, milk, egg, fish etc. The question that arises for consideration is whether the laboratory reagents should be classified under the HSN Code 3822 - Diagnostic or laboratory reagents attracting GST at the rate of 12% or should be classified under entry at SI No. 453 of the Third Sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racter of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. Rule 3: When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onceivable process of reasoning be brought under any of the tariff items, resort cannot be had to the residuary item. 8.8. In the case of Western India Plywoods Ltd Vs Collector of Customs reported in 2005 (188) ELT 365 SC the Hon ble Supreme Court, inter alia, held that; Application of residuary item only when no other heading expressly or by necessary implication applies. 8.9. In the case of Commissioner of Central Excise Vs M/s Wockhardt Life Sciences Ltd reported in 2012 (277) ELT 299 (SC), the Hon hie Supreme Court, inter alia, laid down the following principles for classification of goods;- There is no fixed test for classification of a taxable commodity. This is probably the reason why the 'common parlance test' or the 'commercial usage test' is the most common. Whether a particular article will fall within a particular Tariff heading or not has to be decided on the basis of the tangible material or evidence to determine how such an article is understood in 'common parlance' or in 'commercial world' or in 'trade circle' or in its popular sense meaning. It is they who are concerned with it and it is the sen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference materials --- For medical diagnosis: 3822 00 11 ---- Pregnancy confirmation reagent 3822 00 12 ---- Reagent for diagnosing AIDS 382200 19 ---- Other 3822 00 90 --- Other 9.2. On a plain reading of the Heading and the sub-headings as extracted above it is evident the Heading 3822 includes; (a) Diagnostic reagents on a backing; (b) Laboratory reagents on a backing; (c) Prepared diagnostic reagents on a backing; (d) Prepared diagnostic reagents without a backing; (e) Prepared laboratory reagents on a backing; (f) Prepared laboratory reagents without a backing; other than those of heading 3002 or 3006. 9.3. Therefore, the reagents referred to in Heading 3822 of the Customs Tariff includes both diagnostic and laboratory reagents. The Tariff Heading 3002 pertains to human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera, other blood fractions and immunological products, whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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