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2020 (11) TMI 1028 - AAR - GSTClassification of goods - Vaccine Carrier - Vaccine Cold Box - falling under chapter 90-MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS under chapter heading- 9018 sub heading 901890 and Tariff item 90189099 Other instruments and appliances used in medical science and attracting rate of tax @ 6% each under Central State Tax or not? - 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 or not. HELD THAT - 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 the same do not merit for classification as instrument and appliances used in medical science. As such the Vaccine 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.
Issues Involved:
1. Classification of Vaccine Carrier and Vaccine Cold Box under Chapter 90 or Chapter 39. 2. Appropriate rate of tax under Central and State Tax for the classified items. Detailed Analysis: Issue 1: Classification under Chapter 90 - Medical or Surgical Instruments and Apparatus - The applicant argued that Vaccine Carrier and Vaccine Cold Box should be classified under Chapter 90, subheading 90189099, as medical appliances. They cited the WHO's specifications and the exclusive use of these products in medical settings. - The applicant referenced several legal precedents and definitions to support their claim that these products are medical devices designed for specific tasks of transporting and storing vaccines under controlled temperatures. - The applicant highlighted that these products are manufactured according to WHO and UNICEF standards and are not used for ordinary purposes like picnic boxes. Issue 2: Classification under Chapter 39 - Plastics and Articles Thereof - The jurisdictional GST officer suggested that these products should be classified under Chapter 39, subheading 39231030, as insulated ware, given their construction from High Density Polyethylene (HDPE) and insulation with Polyurethane Foam (PUF). - The officer noted that despite being manufactured to WHO specifications, the primary function of these products is as insulated containers, akin to other insulated wares. Discussion and Findings: - The authority examined the submissions and found that the issue pertains to the classification of goods under Section 97(2)(a) of the CGST Act 2017. - They referred to the Customs Tariff Act, 1975, noting that Chapter 90 covers instruments and appliances used in medical science, but the Vaccine Carrier and Vaccine Cold Box do not independently maintain cold temperatures without ice packs, thus not fitting the classification of medical instruments. - The authority emphasized that these products are insulated containers as per UNICEF literature and the applicant's description, aligning more closely with Chapter 39, subheading 39231030, which covers insulated ware. - They also noted that as per Chapter Note 1(o) of Chapter 90, goods of plastics are not covered under Chapter 90. Ruling: 1. Question 1: Vaccine Carrier & Vaccine Cold Box do not fall under Chapter 90 (Medical or Surgical Instruments and Apparatus) and thus do not attract a tax rate of 6% under Central and State Tax. 2. Question 2: Vaccine Carrier & Vaccine Cold Box fall under Chapter 39, subheading 39231030 as "Insulated ware," attracting a tax rate of 9% under Central and State Tax. 3. Question 3: Not applicable, as the products are classified under Chapter 39. Conclusion: The ruling clarifies that Vaccine Carrier and Vaccine Cold Box are classified under Chapter 39, subheading 39231030 as insulated ware, attracting a 9% tax rate under both Central and State Tax. This ruling is valid within the jurisdiction of the Authority for Advance Ruling, Uttar Pradesh, and subject to provisions under Section 103(2) of the CGST Act, 2017, until declared void under Section 104(1) of the Act.
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