2019 (10) TMI 1235 - AAR - GST

Classification of goods - Cervical Pillows - whether falls under HSN tariff item 9021.10.00? - HELD THAT - The product is nothing but a pillow used for comfort sleeping. The curve in the pillow provides comfort sleep and it can be used by any person having cervical problems or not. Therefore this product cannot be classified under HSN 9021 as orthopaedic appliances including crutches, surgical belts and trusses; splints and other fracture appliances; artificial parts of the body; hearing aids and other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability . Cervical pillows fall under HSN 9404 10 00 and is taxable at the rate of 18% GST as per Sl. No. 438 of Schedule III of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.

Summary

Issues: Classification of Cervical Pillows under HSN tariff item 9021.10.00.

Classification under HSN 9021:
The applicant, a distributor of Cervical Pillows, sought an advance ruling on whether these pillows fall under HSN tariff item 9021.10.00. The product in question is designed to prevent or correct cervical spondylitis, sprains, and support the head and neck during illness. The applicant argued that the pillows should be classified under heading 9021, which covers orthopaedic appliances for bodily deformities or post-illness support. The pillows were described as made of hypo-allergenic foam with a cotton cover, providing proper sleeping posture and comfort.

Examination and Ruling:
Upon detailed examination, it was found that the Cervical Pillows, despite their therapeutic benefits, primarily serve the purpose of providing comfort during sleep. The product features, as listed on the packaging, emphasized comfort and relaxation rather than medical correction or support for deformities. The pillows were deemed suitable for anyone seeking comfort during sleep, not just individuals with cervical issues. Consequently, the Authority ruled that the Cervical Pillows do not qualify as orthopaedic appliances under HSN 9021. Instead, they were classified under HSN 9404 as "mattress supports; articles of bedding and similar furnishing," attracting an 18% GST rate as per the relevant notification.

Conclusion:
In conclusion, the Authority determined that Cervical Pillows do not fall under HSN tariff item 9021.10.00 but are appropriately classified under HSN 9404 10 00. The ruling clarified the tax implications, specifying the applicable GST rate in accordance with the relevant notification.