2020 (1) TMI 790 - AAR - GST

Permission for withdrawal of Advance Ruling application - classification of goods - Reagents used by the applicant for laboratory testing of water samples - whether classified under Sl.No.80 of the IGST schedule-II at 12% under IGST Notification No.1/2017-Integrated Tax (Rate) dated 28.06.2017? HELD THAT - The applicant vide their letter dated 02.01.2020, requested this authority to permit them to withdraw their application for advance ruling, quoting the reason that the ruling of this authority in IN RE M/S. CHROCHEMIE LABORATORY PVT. LTD. 2019 (10) TMI 871 - AUTHORITY FOR ADVANCE RULING, KARNATAKA which has facts similar to that of the applicant. The application filed by the Applicant for advance ruling is disposed off as withdrawn.

Summary

Issues: Classification of Laboratory Reagents under IGST Notification No.1/2017-Integrated Tax (Rate) dated 28.06.2017

Analysis:
1. Background: M/s. HACH DHR India Pvt. Ltd. sought an advance ruling under Section 97 of CGST Act, 2017 & KGST Act, 2017 regarding the classification of Laboratory Reagents used for water quality testing.

2. Applicant's Business Operations: The applicant, a private limited company in Bengaluru and a subsidiary of Danaher Corporation, imports goods for sale within India and provides Maintenance Services through contracts. They sell water quality testing instruments across India and hold GST registrations in Karnataka & Delhi.

3. Specific Question: The applicant sought clarification on whether their "Reagents" used for laboratory testing of water samples should be classified under Sl.No.80 of the IGST schedule-II at 12% under IGST Notification No.1/2017-Integrated Tax (Rate) dated 28.06.2017.

4. Applicant's Contention: The applicant argued that their "Lab Reagents" for water quality testing should be classified under tariff heading 3822, falling under SI.No.80 of Schedule-II of the Notification No. 01/2017-Integrated Tax (Rate) and should be taxed at 12% IGST. They claimed that their products do not fall under Sl.No.453 of Schedule-III, which attracts 18% IGST.

5. Withdrawal of Application: The applicant, after seeking an adjournment, requested to withdraw their application citing a similar ruling by the authority in another case. The authority disposed of the application as withdrawn based on the applicant's request.

6. Ruling: The Authority for Advance Ruling, Karnataka, disposed of the application filed by M/s. HACH DHR India Pvt. Ltd. for advance ruling as withdrawn, following the applicant's request to withdraw the application.

This detailed analysis covers the background, business operations, specific question raised by the applicant, their contentions, withdrawal of the application, and the final ruling by the Authority for Advance Ruling, Karnataka regarding the classification of Laboratory Reagents under the relevant IGST Notification.