TMI Blog2020 (11) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... e carrier and vaccine cold box do not merit classification under chapter subheading 9089099. As per note 1 (0 of the Chapter 90, parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV) or similar goods of plastics (Chapter 39) are not covered in Chapter 90. As the Vaccine Carrier and Vaccine Cold Box being manufactured from HDPE and PUF are goods of plastics, the same is not covered in Chapter 90. As per Rule 3a of the General Rules for interpretation of the first schedule (Import Tariff), the heading which provides the most specific description shall be preferred to heading having more general description. According to Rule 3b of the Rules of interpretation, in case Rule 3a is not applicable, the goods shall be classified as if they consisted of the material/ raw material which give their essential character. In the applicant's case, the essential character of Vaccine Carrier and Vaccine Cold Box is insulated ware. As such, Vaccine Carrier and Vaccine Cold Box merit classification in chapter subheading 39231030. - UP ADRG 67/2020 - - - Dated:- 17-11-2020 - SHRI ABHISHEK CHAUHAN AND SHRI DINESH KUMAR VERMA, MEMBER Represented by : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that Vaccine Carrier comes with an additional strap which is used to transport the carrier from one place to another. (iv) Vaccine Carrier and Vaccine Cold Box are manufactured by using the materials of High Density Polyethylene. The same are insulated with Polyurethane Foam (PUF) which protects it from external heat. The inner walls of the product are covered with ice packs which are designed according to the size of Carrier /Box. Complete product is designed as per the specification approved by World health organization's (WHO). (v) Different models of vaccine carrier have different vaccine storage capacities. Health centers usually need one or more vaccine carrier that can hold: A one-month supply of vaccines; and A one- to two-week reserve stock of vaccines. (vi) In addition to their vaccine storage capacity, vaccine carrier are selected according to their cold life, the time taken for the temperature inside a vaccine carrier or vaccine carrier to rise from +2 C to +8 C without the lid being opened. Different models have a cold life of two to six days. They are classified as Long range and short range Box. (vii) These products are used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appliance is a mechanical thing, an apparatus or device. (xiv) From the above discussion it is clear that Vaccine Carrier and Vaccine cold box is a medical appliance /device or piece of equipment designed to perform a specific task of transportation and storage of vaccines under controlled temperature hence classified under CTH 90189099 attracting rate of tax @6% under both Central and State Tax. (xv) As per Chapter Note 2(u) of Chapter 39 of GST Tariff, the Chapter 39 does not cover articles classifiable under Chapter 90. Thus, even if any goods are capable of being classified under Chapter 39, the same have to be classified under Chapter 90 if they satisfy the criteria laid therein. The goods classifiable under Chapter 39 are goods of general use. (xvi) Rule 3(a) of the Interpretative Rules states, 'heading which provides the most specific description shall be preferred to headings providing a more general description'. The said good are correctly classifiable under Chapter 90 of the GST Tariff as the same are differentiable from the general term of insulated wear for the following reasons: The said goods are specifically designed to protect vaccin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt that the main criteria for determining classification are normally the use it is put to by the customers who use it. In this case the above products are put to use as an appliances for storage and transportation of vaccines which classify it under heading 9018 appliances used in medical science. (xxiii) In other words they have to be constructed in the sense that the people conversant with the subject-matter of the statute, would attribute to it. In view of the above discussed facts about nature of the impugned goods and, following the above ratio it can be said that the subject goods are covered under the terms instruments and appliances . (xxiv) In the matter of Sun Export Corporation Vs. Collector of Customs, Bombay [1997 (93) ELT 641 (SC)] it was held that if an item is prima facie classifiable under two or more headings, it shall be classified under the heading which occurs last in numerical order and when two views are possible, the one favorable to the assessee has to be adopted. (xxv) The impugned Vaccine Carrier and Vaccine Cold Box are manufactured specially for the purpose of use in carrying and transporting vaccines at maintaining desired tempe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act would also mean a reference to the same provision under the UPGST Act. Further to the earlier, henceforth 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 of classification Vaccine Carrier and Vaccine Cold Box under Chapter subheading 90189099 or 39231030 or any other chapter and rate of tax in case of same falling in any other chapter. The applicant has arrived the classification of the same under Chapter subheading 90189099. 11. As per Customs Tariff Act, 1975, the HSN 9018 covers INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL OR VETERINARY SCIENCES, INCLUDING SCIENTIGRAPHIC APPARATUS, OTHER ELECTROMEDICAL AP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication under chapter subheading 9089099. 15. We find that chapter subheading 39231030 covers insulated ware as detailed below- Chapter 39- PLASTICS AND ARTICLES THEREOF 3923 ARTICLES FOR THE CONVEYANCE OR PACKING OF GOODS, OF PLASTICS; STOPPERS, LIDS, CAPS AND OTHER CLOSURES, OF PLASTICS 3923 10 - Boxes, cases, crates and similar articles: 3923 10 10 --- Plastic containers for audio or video cassettes, cassette tapes, floppy disk and similar articles 3923 10 20 --- Watch-box, jewellery box and similar containers of plastics 3923 10 30--- Insulated ware 16. The applicant had submitted that the Vaccine Carrier and Vaccine Cold Box are manufactured by using the materials of High Density Polyethylene and the same are insulated with Polyurethane Foam (PUF) which protects it from external heat. The UNICEF had also treated the same as insulated container. As the vaccine Carrier and Cold box are manufactured from the HDPE and PUF and the same is an insulated container, it is appropriately classifiable under chapter subheading 39231030. 17. As per note 1 (0 of the Chapter 90, parts of general use, as defined in Note 2 to Section XV, of base metal ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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