TMI Blog2021 (12) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... toms Tariff Act, 1975, Chapter 30 does not cover preparations of heading 3303 to 3307, even if they have therapeutic or prophylactic properties. As such, the product Himsa Plus Oil is predominantly a hair oil (i.e. preparations for use on the hair) meriting classification under Chapter sub-heading 330590 and attracts GST @ 18%. - UP ADRG 77/2021 - - - Dated:- 27-5-2021 - SHRI ABHISHEK CHAUHAN AND SHRI VIVEK ARYA, MEMBER Represented by Mr. Anurag Singh (C.A.) ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98 (4) OF THE UPGST ACT, 2017 1. M/s Surya Ayurved, 110A(1), Patel Nagar, GT Road, Kanpur-208007 (here in after referred to as the applicant) is a registered assessee under GST having GSTN: 09ATXPS8213K1ZP. 2. The applicant has sought advance ruling on following question- (1) Applicable GST rate on Himsa Plus Oil, which is a ayurvedic hair oil used for various hair disease and headache. 3. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. 4. As per statement of facts submitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 9. We have gone through the submissions made by the applicant and have examined the explanation submitted by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2)(a) of the CGST Act 2017 being a matter related to classification of goods. We therefore, admit the application for consideration on merits. 10. We observe that the applicant has sought advance ruling on the issue- (1) Applicable GST rate on Himsa Plus Oil, which is a ayurvedic hair oil used for various hair disease and headache. 11. As per Section 9(1) of the CGST Act, 2017, the levy of tax is on the supply of goods or services at such rates as may be notified by the Government on the recommendations of the Council. Accordingly, Notification No. 1/2017-Central Tax (Rate) dated 28-Jun-2017 has been issued to notify the rates. This notification divides all the goods into 6 Schedules, as follows: i. 2.5% (Schedule I); ii. 6% (Schedule II); iii. 9% (Schedule III); ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 59 3305 9011, 3305 9019 01-07-2017 to 14.11.2017 Hair oil 3305 *15-11-2017 to 24-01-2018 Preparations for use on the hair. 25-01-2018 onwards Preparations for use on the hair. [except Mehendi pate in Cones] 14. We shall now refer to the relevant Entries/tariff items in the First Schedule to the Customs Tariff Act 1975. Chapter 30 and Chapter 33 thereof are relevant for our purpose. CHAPTER 30 Pharmaceutical products Notes : 1. This Chapter does not cover : (a) . . . . . . (b) . . . . . . . . . . . . . . (e) preparations of headings 3303 to 3307, even if they have therapeutic or prophylactic properties; 15. Now, we shall refer to Chapter 33 on which the jurisdictional officer seeks to place reliance. CHAPTER 33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations Notes : 1. . . . . . . . . . . 2. . . . . . . . . . . 3. Headings 3303 to 3307 apply, inter alia, to products, whether or not mixed (other than aqueous distillates and aqueous sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forms or packings for retail sale, including Ayurvedic, Unani, homeopathic siddha or Bio-chemic systems medicaments, put up for retail sale. This Chapter 30 has to be read with the Chapter Note 1(e) which states that this Chapter (i.e. Ch. 30) does not cover preparations of heading 3303 to 3307, even if they have therapeutic or prophylactic properties. 18. Note 1(e) to Chapter 30 was considered by the Supreme Court in Puma Ayurvedic Herbal (P) Ltd. Case Vs Commissioner of Central Excise (2006) 196 ELT 3(SC). It was observed that Thus preparations falling in Chapter 33 even if they have therapeutic or prophylactic properties will not fall under Chapter 30 which deals with pharmaceutical products. The reason for this appears to be that even cosmetics may have something to improve skin or other parts of the body where they are used. In that sense they may have some therapeutic value, yet they remain cosmetic. 19. Thus on reconciling the Chapter Heading with Chapter Note, it indicates that only L- those products whose curative or preventive value is substantial and the product is manufactured primarily with a view to control or cure a disease by adding suitable pharma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bbed, poured, sprinkled or sprayed on, or introduced into, or otherwise applied to the human body or any part thereof or cleansing, beautifying, promoting attractiveness, or altering the appearance, and includes any article intended for use as a component of cosmetic; 24. The product Himsa Plus Oil is poured on hair for beautification or promoting attractiveness as the same is in the nature of cosmetics defined as above. Moreover as per Chapter Note 1(e) of Chapter 30 of the Customs Tariff Act, 1975, Chapter 30 does not cover preparations of heading 3303 to 3307, even if they have therapeutic or prophylactic properties. As such, the product Himsa Plus Oil is predominantly a hair oil (i.e. preparations for use on the hair) meriting classification under Chapter sub-heading 330590 and attracts GST @ 18% (CGST 9% and SGST 9%). 25. In view of the above discussions, we, both the members unanimously rule as under; RULING 26. Question Applicable GST rate on Himsa Plus Oil, which is a ayurvedic hair oil used for various hair disease and headache)? Answer:- Himsa Plus Oil merits classification under Chapter heading 3305.90 and attracts GST @ 18% (CGST 9% and SG ..... X X X X Extracts X X X X X X X X Extracts X X X X
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