In Re : Shri Gopal Gireesh, Veena Chemicals
GST
2018 (6) TMI 705 – AUTHORITY FOR ADVANCE RULINGS, KERALA – 2018 (13) G. S. T. L. 469 (A. A. R. – GST), [2018] 2 GSTL (AAR) 53 (AAR)
AUTHORITY FOR ADVANCE RULINGS, KERALA – AAR
Dated:- 29-5-2018
ORDER No. CT/4683/2018-C3
GST
Mr. Senthil Nathan S, IRS, Joint Commissioner, Office of the Commissioner of Central Tax & Cental Excise, Thiruvananthapuram And Mr. N. Thulaseedharan Pillai, Joint Commissioner (General), Office of the Commissioner of State Taxes, Thiruvananthapuram
RULING
1. Shri. Gopal Gireesh, Veena Chemicals, Thiruvananthapuram a retail dealer of implants for joint replacements (hereinafter called the applicant) is a registered person having GSTIN 32ADXPG4961E1ZF. The applicant has preferred an application for Advance Ruling on the rate of tax in respect of the commodities listed in the Annexure to the Application.
2. The applicant has stated in the application that all the commodities listed in the Annex
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enclosed as Annexure are implants for joint replacements falling under HSN Code 90213100. The question to be decided is whether the products get covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5% or Serial No. 221 of Schedule II of the Notification No.' 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 12%. The products listed in Annexure are falling under Customs Tariff Head 90213100 – Artificial Joints. Such implants for joint replacement are specifically covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017.
Sl. No.
Chapter/Heading/Sub -Heading/Tariff Item
Description of goods
(1)
(2)
(3)
257
90 or any other Chapter
Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule
List 3:
E(9): I
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s and Chapter Notes under the Customs Tariff Act, 1975 has been adopted by Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017. The Explanation appended to the Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 reads as follows;
“Explanation: –
(1) In this Schedule, tariff item, heading, sub-heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(2) The rules for the interpretation of the first Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of above table.”
Accordingly, the appropriate classification as determined under the Customs Tariff Act, 1975 including on an application of the Chapter Notes and General Explanatory Notes, would apply for the purpose of levy of GST.
6. As per Rule 3 of the
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90 or any other Chapter
Assistive devices, rehabilitation aids and other goods for disabled, specified in List 30
List 30:
E(9): Instruments and implants for severely physically handicapped patients and joints replacement and spinal instruments and implants including bone cement.
The industry dealing in joint replacement products also avails benefit of Nil BCD on import of implants for joint replacement under the above entry.There needs to be harmonization in the interpretation I applicability I coverage of entries under the Customs Tariff and GST. Shri. Lalji Vijayan, Chartered Accountant representing the applicant further reiterated and confirmed that all the commodities as listed in the Annexure to the application by their technical I trade names are nothing but implants for joint replacement falling under Customs Tariff Heading 90213100 – Artificial Joints. In support of the above, the applicant produced sample copies of the invoices issued by M/s Johnson and Johnson Pvt Ltd
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evident that joint replacements are specifically covered under the entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I whereas the entry at Sl. No. 221 of Schedule II is a general entry that covers artificial parts of body. Therefore, applying the principle under Rule 3 of the General Rules of Interpretation of the First Schedule to the Customs Tariff Act, 1975; that the heading which provides the most specific description shall be preferred to headings providing a more general description we hold that the joint replacements falling under HSN Code 90213100 are covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GSTat the rate of 5%.
RULING
The implants for joint replacements falling under HSN Code 90213100 are covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%.
Case
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