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TMI Blog2020 (11) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... tracting rate of tax @ 6% each under Central, State Tax? 2. Whether the above mentioned items are falling under chapter 39 PLASTICS AND ARTICLES THEREOF chapter heading 3923, subheading 392310 and Tariff item 39231030 as "Insulated ware" attracting rate of tax @ 9% each under Central and State Tax? 3. If the above products are not falling either under chapter 90 OR chapter 39, what is the appropriate classification of Vaccine Carrier & Vaccine Cold Box and what is the rate of tax under Central, State Tax? 4. 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. 5. The applicant have submitted that- (i) As per World health organization's (WHO) literature "Immunization in Practice" 2015 update, the purpose of the vaccine "cold chain" is to maintain product quality from the time of manufacture until the point of administration by ensuring that vaccines are stored and transported within WHO-recommended temperature ranges. (ii) Vaccine Carrier and Vaccine Cold Box is a special container that can be lined with frozen ice pack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herence to the PQS standards. (xi) Since the said goods are manufactured as per the strict requirements of World health organization (WHO) and used specifically for vaccination programs, it has to be classified as appliances used for medical science under CTH 90189099 attracting rate of tax @6% under both Central an State Tax. (xii) The CTH 90189099 of the GST Tariff covers 'other instruments, appliances and apparatus' used for medical purpose. The term 'instruments' has not been defined under the GST Tariff. In the matter of Star Paper Mills vs. Collector of Central Excise [1989 (43) ELT 178 (SC)] the Hon'ble Supreme Court has laid down that when a term in not defined in a statute, its dictionary meaning may be referred. As per web dictionary merriam-webster.com instrument is a "means whereby something is achieved, performed, or furthered". As regards "apparatus" it has been defined in the Concise Oxford Dictionary as equipment for doing something. Webster's Dictionary describes the term as an instrument or appliance designed for a specific operation. Likewise the expression appliance has been defined in the Concise Oxford Dictionary as utensil, device ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been regularly classified under Chapter 90 while exporting from major ports by other exporters. The similar issue has been decided by "THE COMMISSIONER OF CUSTOMS" KANDLA in favor of importer wherein department has disputed the classification of above said products under chapter 90. (xx) In the matter of Commissioner of Central Excise Vs. Connaught Plaza Restaurant (P) Ltd. [2012 (286) ELT 321 (SC)] it was held that in the absence of a statutory definition in precise terms; words, entries and items in taxing statutes must be construed in terms of their commercial or trade understanding, or according to their popular meaning. (xxi) In Indian Aluminum Cables Ltd. v. UOI 1985 (21) E.L.T. 3 (SC) Chandrachud, CJ speaking for a three Judge Bench observed: "This Court has consistently taken the view that, in determining the meaning or connotation of words and expressions describing an article in a Tariff Schedule, one principle which is fairly well-settled is that those words and expressions should be construed in the sense in which they are understood in the trade, by the dealer and the consumer. The reason is that it is they who are concerned with it and, it is the sense in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s/verification report on the matter. The Assistant Commissioner, CGST & Central Excise Division I, Gautam Budh Nagar vide his C.No.V(30)Tech/Misc. Report/D-I/GBN/18/2018/818 dated 07.10.2020 submitted that Vaccine Carrier and Vaccine Cold Box are manufactured using High Density Polyethylene (HDPE) and it is insulated with Polyurethane Foam (PU Foam) which protects it from external heat. Thus, the Vaccine Carrier and Vaccine Cold Box appears to be covered under chapter sub heading 39231030 (insulated ware). Though, Vaccine Carrier and Vaccine Cold Box are manufactured as per PQS specification prescribed by WHO, temperature in the same is controlled by placing ice box inside it as such the same are nothing but insulated box. He also informed that no such proceedings are pending for decision as on date. 7. The applicant was granted a personal hearing on 06.11.2020 which was attended by Simi Vinod Kumar, Chartered Accountant /Authorized Representative through video conferencing during which he reiterated the submissions made in the application of advance ruling. DISCUSSION AND FINDING 8. At the outset, we would like to make it clear that the provisions of both the CGST Act and the U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /file/E004-cold-boxes-vaccine-carrier%20-procurement-guidelines.pdf) Cold boxes, vaccine carriers and coolant packs are used for keeping vaccines cold during transportation. In comparison with cold boxes, vaccine carriers have a smaller volume, suitable for use by health workers during immunization campaigns and out-reach services. As these are passive devices, coolant packs are accessories for both cold boxes and vaccine carriers proving the cooling energy/warming for a limited time period. ................ Cold Boxes are insulated containers that can be lined with coolant packs to keep vaccines and diluents cold during transportation and/or short period storage. 14. We find that the Vaccine Carrier or Vaccine Cold Box as such is not capable of keeping the vaccines and diluents cold unless the coolant packs or ice packs are placed inside Vaccine carrier or Vaccine Cold Box. As per the literature of UNICEF, the Vaccine Carriers and Cold Boxes are insulated containers. As per the description of vaccine carrier and vaccine cold box submitted by the applicant as well as available on UNICEF website, we are of the firm opinion that the same do not merit for classification as instrume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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