2022 (1) TMI 902 - AAR - GST

Classification of goods / services - Zirconium Oxide Ceramic Dental Blanks in different sizes - whether classifiable under Chapter Heading 69091200 as Ceramic Product as at this stage Artificial Teeth are not produced from it, even though the Product is biscuit fired having hardness of less than 9 on Moh's scale or the product is classifiable under Chapter Heading 90212100 since Artificial Ceramic Teeth are produced from the product which has hardness of 9 on Moh's scale? - Artificial Teeth, Crown, Bridges, Dental Restoratives etc as produced from the Product of Applicant - classifiable under Chapter Heading 90212100? - health care services including providing of Artificial Teeth, Crown, Bridges etc treatment by dental clinic of Applicant to its patients, excluding health care services for bleaching of teeth and dental veneers treatment - falls under Chapter Heading 999312, attracting Nil rate of GST or not - health care services namely bleaching of teeth and dental veneers for smile designing provided by dental clinic - classifiable under Chapter Heading 999312 at Nil rate of GST or Chapter Heading 999722 at 18% GST? Zirconium Oxide Ceramic Dental Blanks in different sizes - whether the impugned product can be called as a ceramic ware? - HELD THAT - A reading of the Zircon Industry Association reveals that, Zircon is the primary mineral, which is a co-product from the mining and processing of ancient heavy mineral sand deposits. It is also referred to as zirconium silicate and has the chemical composition ZrSiO 4 . Zircon can be used either in its coarse sand form or milled to a fine powder, which is referred to as zircon flour. Zircon sand is used in the casting and foundry industries, whilst zircon flour is primarily used as an opacifier in the ceramics industry - Zircon can be processed to create zirconia by melting the sand at very high temperatures, typically above 2,600 C, in an electric arc furnace to form molten zirconia, also known as zirconium oxide (ZrO 2 ). The cooled and crushed zirconia is then used in many different applications including in advanced ceramics and biomedical implants. The subject product is described by the applicant as 'Zirconium Oxide Ceramic Dental Blanks'. The impugned product can be treated as a ceramic ware and therefore is covered under Chapter 69 of the GST Tariff. 'Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic attract 12% GST as per Schedule II of Notification No. 01/2017 - C.T.R. dated 28.06.2017 (Entry No. 177A). Since the impugned product cannot be considered as Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic the same is not covered under the said Entry No. 177A of the above mentioned Notification. The impugned product can be said to be a type of ceramic ware for use in laboratory, etc. and therefore the impugned product is aptly covered under Tariff heading 6909 of the GST Tariff. Whether Artificial Teeth, Crown, Bridges, Dental Restoratives etc as produced from the Product of Applicant is classifiable under Chapter Heading 90212100? - HELD THAT - The applicant has not submitted whether they also have a Dental laboratory. The question (regarding making of artificial teeth) raised by the applicant appears to be a general question which is raised in respect of an activity (making of artificial teeth) by another entity and not the applicant. Since the question raised by the applicant does not pertain to an activity being undertaken or proposed to be undertaken by them, as per the provisions of Section 95 of the CGST Act, 2017, the said question cannot be answered by this authority. Whether the health care services including providing of artificial Teeth, Crown, Bridges etc treatment by dental clinic of Applicant to its patients, under Chapter Heading 999312, attracting Nil rate of GST? - HELD THAT - Health Services in the form of Dental Services like fitment of artificial ceramic teeth, crown, bridges, dental restoratives are carried out in applicant's clinic (Clinical establishment) by qualified Dentists who can be considered as Authorised Medical Practitioners, since Dentistry is a part and parcel of Medical Practice - the Dental Services like fitment of artificial ceramic teeth, crown, bridges, dental restoratives carried out by Dentists in the applicant's clinic is nothing but Health Services and are exempt from GST as per the provisions of SL No. 74 of Notification No 12/2017 CT (Rate) dated 28.06.2017 - However the provision of fitment of artificial ceramic teeth, crown, bridges, dental restoratives carried out in applicant's clinic will be eligible for exemption only if they are carried out as a part of Health Care Services i.e. they are carried out as a diagnosis or treatment or care for illness, injury, deformity, or abnormality and not as a part of and including, cosmetic treatment. Whether health care services namely bleaching of teeth and dental veneers for smile designing provided by dental clinic of Applicant to its patients falls under Chapter Heading 999312 at Nil rate of GST or Chapter Heading 999722 at 18% GST? - HELD THAT - As per the description given by the applicant in respect of Bleaching of teeth, it is found that, the same is a restoration of natural tooth shade or whitening beyond the natural shade. This process cannot be considered as services by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy - the said service is not covered under SAC 999312. In fact the said service is explicitly covered under SAC 999722 (Cosmetic treatment (including cosmetic/plastic surgery), manicuring and pedicuring services). Dental Veneers - HELD THAT - Dental Veneer Treatment also, cannot be considered as services by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy. Further the said treatment falls under the exclusion part of the definition of Health care Services . The discussions made pertaining to Bleaching of Teeth is applicable in case of Dental Veneer Treatment also and therefore it is held that Dental veneer Treatment which is done to enhance a 'smile' is explicitly covered under SAC 999722 (Cosmetic treatment (including cosmetic/plastic surgery), manicuring and pedicuring services).

Summary

Issues Involved:

1. Classification of "Zirconium Oxide Ceramic Dental Blanks."
2. Classification of Artificial Teeth, Crowns, Bridges, and Dental Restoratives.
3. Classification of health care services provided by the applicant's dental clinic.
4. Classification of bleaching of teeth and dental veneers for smile designing.

Issue-wise Detailed Analysis:

1. Classification of "Zirconium Oxide Ceramic Dental Blanks":

The applicant manufactures "Zirconium Oxide Ceramic Dental Blanks" and classifies them under Chapter Heading 69091200 as "Ceramic Product." The product is biscuit fired with a hardness of less than 9 on Moh's scale. The applicant contends that the product should be classified under Chapter Heading 90212100 as it is used to produce artificial ceramic teeth with a hardness of 9 on Moh's scale. The Authority for Advance Ruling (AAR) examined the product's characteristics and industry standards, concluding that it is a type of ceramic ware used in laboratory and technical applications. Thus, the product is classified under Chapter Heading 69091200, attracting 18% GST.

2. Classification of Artificial Teeth, Crowns, Bridges, and Dental Restoratives:

The applicant sought clarification on whether artificial teeth, crowns, bridges, and dental restoratives produced from their product fall under Chapter Heading 90212100. The AAR noted that the question pertains to activities conducted by dental laboratories, not the applicant. Since the query does not relate to the applicant's activities, the AAR declined to answer this question under Section 95 of the CGST Act, 2017.

3. Classification of Health Care Services Provided by the Applicant's Dental Clinic:

The applicant's dental clinic provides various treatments, including fitting artificial teeth, crowns, and bridges. The AAR examined the classification of these services under Chapter Heading 999312, which covers medical and dental services. According to the explanatory notes and relevant notifications, health care services provided by clinical establishments and authorized medical practitioners are exempt from GST. The AAR confirmed that dental services like fitting artificial teeth, crowns, and bridges are health care services and fall under Chapter Heading 999312, attracting a Nil rate of GST, provided they are not cosmetic services.

4. Classification of Bleaching of Teeth and Dental Veneers for Smile Designing:

The applicant provides bleaching of teeth and dental veneers for smile designing, which they currently classify under Chapter Heading 999722, attracting 18% GST. The AAR analyzed whether these services could be classified under Chapter Heading 999312 as health care services. The definition of health care services excludes cosmetic or plastic surgery unless undertaken to restore or reconstruct anatomy or function due to congenital defects, abnormalities, injury, or trauma. The AAR determined that bleaching of teeth and dental veneers are cosmetic treatments aimed at enhancing appearance and do not qualify as health care services. Therefore, these services fall under Chapter Heading 999722, attracting 18% GST.

Order:

1. "Zirconium Oxide Ceramic Dental Blanks" are classified under Chapter Heading 69091200.
2. The question regarding the classification of artificial teeth, crowns, bridges, and dental restoratives is not answered as it does not pertain to the applicant's activities.
3. Health care services, including fitting artificial teeth, crowns, and bridges, fall under Chapter Heading 999312, attracting a Nil rate of GST when provided as health care services, not cosmetic services.
4. Bleaching of teeth and dental veneers for smile designing fall under Chapter Heading 999722, attracting 18% GST.