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TMI Blog2017 (9) TMI 1536X X X X Extracts X X X X X X X X Extracts X X X X ..... d integral part of the Medical treatment and without the Diagnosis of the Blood samples, possibly, the Medical Science as far as Allopathy is concerned, cannot even work. The integrity of the Blood Banks and Blood Bank Equipments with the Medical profession comprising of Diagnosis and treatment of the human beings and animals cannot be doubted and they cannot be separated also. The nature of business of the petitioner-assessee who is a registered dealer with the Respondent Department is nothing except dealing with the Blood Bank Equipments and other Medical Equipments. It was not selling usual Refrigerators or Cold Storages. These Refrigerators are specially designed for storing only Blood samples before or after their processing. Therefore, there is no good reason even to treat the Refrigerators specially designed for Blood samples as not falling within the wide scope of Entry 61, which as quoted above reads as ”Medical Equipments, Devices and Implants” - The other Blood Bank Equipments are undoubtedly covered by Entry 61 of the III Schedule to the KVAT Act, 2003. The goods viz. “Blood Collection Monitors, Blood Storage Refrigerators and Deep Freezers, Platelet Agitators wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and ensures that the right volume of blood is collected. Blood collection monitors are mandatorily prescribed to operate a blood bank as per guidelines issued by the Ministry of Health and Family Welfare, Government of India; b. Blood Storage Refrigerators: Blood storage refrigerators are specially designed for use in blood banks, and are mandatorily prescribed in order to operate a blood bank as per guidelines issued by the Ministry of Health and Family Welfare, Government of India. This equipment ensures that blood is safely stored at a temperature between 2 to 6 degrees Celsius in order to prevent the freezing of red blood cells and avoid bacterial contamination. A blood storage refrigerator has an inbuilt thermograph/TRCU (Temperature recording and control unit), which maintains the temperature of the blood and records the same on a specially prepared chart. This thermograph chart is required to be maintained for a period of 5 years as per Central Government regulations. If there are any abnormalities in the temperature of the blood being stored, the same is indicated through audio visual alarms so that the technician can rectify the abnormality. Pertinently, blood stora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also thawed at 37 degrees Celsius to retain its anti- haemophilia factor, which is essential for patients suffering from haemophilia. 3. The learned Senior Counsel for the petitioner, Mr. Kumar, therefore, has submitted that the learned Commissioner on a misconception that the Blood Bank Equipments as aforesaid are not Medical Equipments but are in the nature of Refrigerators, Weighing Machines and Storage Equipments , has wrongly held them to be falling under the Residuary Entry and not under Entry 61 of the III Schedule to the KVAT Act, 2003. He submitted that the purpose of different and specially designed equipments as aforesaid are necessary for collection of the Blood samples in proper and safe prescribed manner and segregating the platelets and to allow uniform thawing of frozen cryo precipitate etc. are all technical aspects of the blood collection sampling which are necessary, mandatorily prescribed and integral part of the medical services rendered by the Hospitals and Nursing Homes and these machines are specially designed machines and cannot be taken out of Entry 61 so as to fall in the Residuary Entry. He submitted that if a particular commodity is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to industrial inputs and IT products. Even though entry 60 refers to Drugs and Cosmetics Act 1940 to classify the drugs and pharmaceutical preparations, medical devices and equipment are excluded. Such being the case, the commodities for which clarification is sought for are instruments and appliances which are exclusively used in Blood Bank shall be classified as unscheduled commodities. Drugs and Cosmetics Rules, 1945 classifies them as Blood Bank equipments. Government of India (No.X -11014/3/2001-DMS PFA) in Regulatory requirements of blood and/or its components including blood products has enumerated the requirements of blood bank equipments. These equipments of blood bank as enumerated in Part X-B of the Drugs and Cosmetics Rules 1945 [http://www.cdsco. nic.in/]. The goods for which the applicant has sought clarification are also the goods which are Blood Bank equipments which are instruments and appliances and they are not Medical Equipments , as the Blood Bank equipments are not medical equipments or devices as defined above. These goods are in the nature of refrigerator, weighing machine and storage equipment designed to suit the needs of Blood Bank while medical device ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent Assessing Authorities working in the said Department. Section 59 deals with Instructions to Subordinate Authorities and Section 60 of the KVAT Act deals with Clarification and Advance Rulings . These provisions contained in Chapter VI of the KVAT Act are precisely made to render Advance Rulings to obviate unnecessary litigation and give binding guidance to the lower Assessing Authorities. The rationale and reasons assigned by the learned Commissioner in the impugned order do not stand the test of judicial scrutiny and the common parlance test or Trade parlance test which have to be applied while making such interpretations in the exercise of powers under Sections 59 and 60 of the KVAT Act. 12. The present writ petition, therefore, deserves to be allowed. Accordingly, the same is allowed and setting aside the impugned order, Annexure F, dated 27/06/2016 and consequential Assessment Orders passed by the Assessing Authorities in pursuance of the said order, it is held that the goods viz. Blood Collection Monitors, Blood Storage Refrigerators and Deep Freezers, Platelet Agitators with incubators and Plasma Expressers (Electrical and Manual) and Cryobaths are taxable at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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