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TMI Blog2022 (1) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... aving hardness of less than 9 on Moh's scale or the product is classifiable under Chapter Heading 90212100 since Artificial Ceramic Teeth are produced from the product which has hardness of 9 on Moh's scale. 2. Whether Artificial Teeth, Crown, Bridges, Dental Restoratives etc as produced from the Product of Applicant is classifiable under Chapter Heading 90212100. 3. Whether the health care services including providing of Artificial Teeth, Crown, Bridges etc treatment by dental clinic of Applicant to its patients, excluding health care services for bleaching of teeth and dental veneers treatment falls under Chapter Heading 999312, attracting Nil rate of GST. 4. Whether health care services namely bleaching of teeth and dental veneers for smile designing provided by dental clinic of Applicant to its patients falls under Chapter Heading 999312 at Nil rate of GST or Chapter Heading 999722 at 18% GST. At the outset, we would like to make it clear that the provisions of both the CGST Act and the GST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the Dental Laboratory is now have installed CAD/CAM milling machine using special software. Along with milling machine, special scanner is installed. Prepared model is kept in scanner which scans the model and with the help of special CAD software Lab Technicians designs required teeth, crown, bridges, dental restoratives, etc. Once design process is completed, technician gives instructions through software/computer to milling machine. On the milling machine Applicant's Product "Zirconium Oxide Ceramic Dental Blanks" is fixed. The milling machine start milling of artificial ceramic teeth, crown, bridges, dental restoratives etc from the impugned Product and after milling they are sintered to give it final hardness which is more than 9 on Moh's scale final finishing, layering, etc is then carried. Hence Impugned product is the material for making artificial ceramic teeth. 2.6 The Product - Zirconium Oxide Ceramic Dental Blanks were classified under Chapter heading 69091200 under erstwhile Central Excise Act. As per guidance note to chapter heading 69, it applies "only to ceramic products which have been fired after shaping". 2.7 the procedure for manufacture of - Zirc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices. Currently above services are taxed at Nil rate of GST. (ii) Besides above health care services, Applicant also provides following services: 1. Bleaching of teeth - which is either the restoration of natural tooth shade or whitening beyond the natural shade. Restoration of the underlying natural tooth shade is possible by removing surface stains caused by extrinsic factors, strainers such as tea, coffee, tobacco, pan etc. 2. Dental veneers treatment or smile designing. Dental veneers are wafer thin, custom made shells of tooth coloured ceramic designed to cover the front surface of teeth to improve facial appearance and/or smile. Above two services are classified by Applicant as under: 999722 Cosmetic treatment (including Cosmetic/plastic surgery) The applicant pays applicable GST at 18% on two services. Whether the healthcare service of providing of bleaching of teeth & dental veneers treatment (smile designing) are classifiable under Chapter Heading 999312 attracting Nil rate of GST or CH 999722 attracting 18% GST. B. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW 2.11 Applicant is presently classifying "Zirconium Oxide Ceramic Dental Blanks" under Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de Ceramic Dental Blanks are manufactured from special high purity raw materials which has to be bio compatible i.e. the material should not be harmful or toxic to living tissue, hence these special raw materials are very expensive as compared to regular material used for manufacture of regular ceramic products. The Product to be marketable has to be tested for many parameters to ascertain its bio-compatibility as per prescribed standard. Based on the tests and the standards for its manufacture applicant is granted certificate as per EN ISO 13485:2016 and CE certification as per Directive 93/42/EEC on medical devices. Such tests and certification are not required for regular ceramic products which falls under Chapter Heading 6909. All these tests are required only for manufacture of bio-compatible ceramic from which artificial teeth are AINDU produced which falls under Chapter Heading 9021. Hence regular ceramic material cannot be used for production of bio-compatible ceramic products NASIK 122007 which in applicant's case falls under Chapter Heading 9021. Zirconium oxide ceramic dental blanks cannot be used in manufacture of other products given its cost and specific shape etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lassification under Chapter Heading 9021. Hence, zirconium oxide ceramic dental blanks are classifiable under CH 9021 due to following: 1. Due to heavy cost of raw materials, bio-compatible tests requirements etc it can be concluded that they are exclusively used for manufacture of artificial teeth. 2. As per General Rule 2(a) of Interpretation of the Harmonized System blanks are incomplete or unfinished final product viz Artificial Teeth, hence merits classification under the same heading. 3. The general Rule of Interpretation also further classifies the term "blanks". Zirconium oxide ceramic dental blanks are in trade termed as "blanks" only which are used for completion of finished article i.e. artificial teeth. 4. Zirconium oxide ceramic dental blanks are of particular shape & thicknesses designed only for producing artificial teeth. Besides they come in different grades of translucency & shades so as to look & match the aesthetic of natural teeth. 03. CONTENTION - AS PER THE CONCERNED OFFICER: The jurisdictional/concerned officer has not made any submissions in the matter. 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 02.06.2021. Authorized Repres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cooled and crushed zirconia is then used in many different applications including in advanced ceramics and biomedical implants. The subject product is described by the applicant as 'Zirconium Oxide Ceramic Dental Blanks'. 5.3.3 From the submissions made by the applicant and a reference of the Zircon Industry Association we find that, the impugned product can be treated as a ceramic ware and therefore is covered under Chapter 69 of the GST Tariff. 5.3.4 We find that 'Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic" attract 12% GST as per Schedule II of Notification No. 01/2017 - C.T.R. dated 28.06.2017 (Entry No. 177A). Since the impugned product cannot be considered as Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic the same is not covered under the said Entry No. 177A of the above mentioned Notification. 5.3.5 We also find that, as per Entry No. 185 B of Schedule III of Notification No. 01/2017 - C.T.R. dated 28.06.2017, Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appears to be a general question which is raised in respect of an activity (making of artificial teeth) by another entity and not the applicant. Since the question raised by the applicant does not pertain to an activity being undertaken or proposed to be undertaken by them, we are of the opinion that, as per the provisions of Section 95 of the CGST Act, 2017, the said question cannot be answered by this authority. 5.5. The third question asked by the applicant is whether the health care services including providing of artificial Teeth, Crown, Bridges etc treatment by dental clinic of Applicant to its patients, under Chapter Heading 999312, attracting Nil rate of GST. 5.5.1 The Explanatory notes for the Scheme of Classification of Services is based on the explanatory notes to the United Nations Central Product Classification (UNCPC). The explanatory notes indicate the scope and coverage of the heading, groups and service codes of the Scheme of Classification of Services. 5.5.2 The Services Accounting Code (SAC) 9993 covers Human Health and Social Care Services. SAC 99931 covers Human Health Services. Accounting Code 999312 covers Medical and Dental Services. Service Code 999312 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancy in any recognised system of medicines in India and includes services by way of transportations of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or function of body affected due to congenital defects, development abnormalities, injury or trauma". 5.5.5 Para 2(k) of Notification No. 09/2017-IT(R) dated 28.6.2017 defines "authorised medical practitioner" as "o medical practitioner registered with any of the councils of the recognised system of medicines established or recognised by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force". 5.5.6 As per Para 2(s) of Notification No. 09/2017- IT(R) dated 28.6.2017, "clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of natural tooth shade or whitening beyond the natural shade. As per the submissions, restoration of the underlying natural tooth shade is possible by removing surface stains caused by extrinsic factors, strainers such as tea, coffee, tobacco, pan etc. 5.6.2 As mentioned above, "health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportations of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or function of body affected due to congenital defects, development abnormalities, injury or trauma" 5.6.3 As per the description given by the applicant in respect of Bleaching of teeth, we find that, the same is a restoration of natural tooth shade or whitening beyond the natural shade. This process cannot be considered as services by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy. Further the definition of "Health Care Services" specifically excludes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , even though the Product is biscuit fired having hardness of less than 9 on Moh's scale or the product is classifiable under Chapter Heading 90212100 since Artificial Ceramic Teeth are produced from the product which has hardness of 9 on Moh's scale? Answer:- In view of the discussions made above, the Product namely "Zirconium Oxide Ceramic Dental Blanks" in different sizes as sold by Applicant are classifiable under Chapter Heading 69091200 Question 2:- Whether Artificial Teeth, Crown, Bridges, Dental Restoratives etc as produced from the Product of Applicant is classifiable under Chapter Heading 90212100. Answer:- Since the question raised by the applicant does not pertain to an activity being undertaken or proposed to be undertaken by them, the said question is not being answered by this authority as per the provisions of Section 95 of the CGST Act, 2017, Question 3: - Whether the health care services including providing of Artificial Teeth, Crown, Bridges etc treatment by dental clinic of Applicant to its patients, excluding health care services for bleaching of teeth and dental veneers treatment falls under Chapter Heading 999312, attracting Nil rate of GST? Answ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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