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2019 (2) TMI 1914 - AAR - GSTClassification of the product - Odomos - medicament classifiable under sub - heading 3004 90 99, or otherwise? - HELD THAT - Heading 3808 of Chapter 38 of Customs Tariff Act covers a range of products (other than those having the character of medicaments, including veterinary medicaments-heading 30.03 or 30.04) intended to destroy pathogenic germs, insects, (mosquitoes, moths, Colorado beetles, cockroaches, etc.) mosses and moulds, weeds, rodents, wild birds, etc. products intended to repel pests - the statue is very clear as far as the classification of items intended to repel pests is concerned and same evident from explanatory note to Chapter 38.08 of Customs Tariff. Thus, the product odomos' achieves its result by odour which makes the conditions unattractive for mosquitoes when coated on human body and accordingly it appears well covered under chapter 38.08 of Customs Tariff Act adopted for the purpose of classification of products under GST Law. Further, the Applicant has been constantly supplying the said product under chapter 38.08 (as per the Jurisdictional report).
Issues Involved:
1. Classification of the product 'Odomos' under the GST Act. 2. Determination of whether 'Odomos' qualifies as a medicament or as a mosquito repellent. Issue-Wise Detailed Analysis: 1. Classification of the product 'Odomos' under the GST Act: The applicant, M/s. Dabur India Ltd., sought an advance ruling for the classification of their product, 'Odomos'. The product is a cream applied to the skin to provide protection from mosquitoes. The applicant argued that 'Odomos' should be classified under Chapter Heading 3004 as a medicament due to its therapeutic or prophylactic properties. They cited the presence of NNDB as an active ingredient, which interferes with mosquitoes' olfactory receptors, preventing them from detecting and biting humans. The applicant also referenced previous court decisions, including CST vs. Balsara Hygiene Products Ltd., where 'Odomos' was classified as a medicament. 2. Determination of whether 'Odomos' qualifies as a medicament or as a mosquito repellent: The applicant contended that 'Odomos' should be classified as a medicament under Chapter Heading 3004, which includes products for therapeutic or prophylactic use. They argued that 'Odomos' prevents diseases transmitted by mosquitoes, thus qualifying as a prophylactic substance. The applicant also highlighted that 'Odomos' is manufactured and sold under a license granted under the Drugs and Cosmetics Act, 1940. However, the Authority for Advance Ruling (AAR) examined the classification under the relevant provisions of the Customs Tariff Act, 1975. The AAR noted that Chapter Heading 3808 covers products intended to repel pests, including mosquitoes. The explanatory notes to Chapter 38.08 specify that products achieving their results by odour, such as 'Odomos', fall under this heading. The AAR also referenced the Supreme Court's decision in ICPA Health Products Ltd. (P) Ltd. v. CCE, Vadodara, which defined 'prophylactic' as a medicament intended to prevent diseases. The AAR concluded that 'Odomos' does not have therapeutic properties and is intended to repel mosquitoes, not prevent diseases directly. Therefore, 'Odomos' should be classified under Chapter 38.08 of the Customs Tariff Act, 1975, as a mosquito repellent. RULING: "Odomos is well covered under Chapter 38 of the Customs Tariff Act and is classified under HSN 38089191." This ruling clarifies that 'Odomos' is classified as a mosquito repellent and not as a medicament under the GST Act.
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