2023 (7) TMI 811 - AAR - GST

Classification of goods - rate of tax - AI crate (Artificial Insemination Crate)/Travis - classified under TI 9018 or under TI 7306? - HELD THAT - The diagram of the product in question viz Al crate (Artificial insemination crate)/Travis, and the photograph of the product that was shown during the course of personal hearing, clearly depict that the product is nothing but a structure made of tubes, pipes of iron and steel. Ideally, therefore, the product falls within the ambit of TI 7306. Even otherwise, it is found that for the product to be classified under TI 9018, it should be a instrument or an appliance or at least an apparatus. The applicant has not produced anything before the Authority which would enable to arrive at a finding to hold that the product in question is a instrument or an appliance or an apparatus. This being the fact, the product would not fall within the ambit of TI 9018. Rate of tax - HELD THAT - In terms of notification No. 1/2017- Central Tax (Rate), Schedule III, Sr. No. 220, the rate of GST is 18%. Reliance can be placed in the case of IN RE M/S. S.K.M.L. INDUSTRIES, 2021 (8) TMI 528 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH where it was held that After a detailed examination of the specific features of the Product i.e., 'Iron Tubular Trevis', or 'Insemination Crate-Cum-Trevis', we are of the opinion that it falls under Entry No.220 of Notification 1/2017 - (Integrated Tax) with HSN code 7306 of Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel attracting 18 % rate of tax.

Summary

Issues Involved:
1. What is the rate of tax applicable for the veterinary instrument known as AI crate (Artificial Insemination Crate)/Travis?
2. Classification of the aforementioned product.

Summary:

Issue 1: Rate of Tax Applicable for AI Crate (Artificial Insemination Crate)/Travis

The applicant sought an advance ruling on the tax rate applicable to their product, AI Crate (Artificial Insemination Crate)/Travis. The ruling determined that the product is leviable to GST at the rate of 18% [9% CGST and 9% SGST] as per notification No. 1/2017- Central Tax (Rate), Schedule III, Sr. No. 220.

Issue 2: Classification of AI Crate (Artificial Insemination Crate)/Travis

The applicant contended that their product should fall under TI 9018, described as "Instruments and appliances used in medical, surgical, dental or veterinary sciences." However, upon examination, the ruling found that the AI Crate is essentially a structure made of tubes and pipes of iron and steel, which falls within the ambit of TI 7306. The ruling emphasized that the product does not qualify as an instrument, appliance, or apparatus under TI 9018. Consequently, the product AI crate (Artificial Insemination Crate)/Travis is classified under TI 7306 of the Customs Tariff Heading (CTH).

Conclusion:

The ruling confirmed that the AI Crate (Artificial Insemination Crate)/Travis is subject to an 18% GST rate and is classified under TI 7306 of the CTH.