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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 ..... 3 ('KVAT Act, 2003' for short), in which on an Application filed by the petitioner - Company seeking clarification from the Respondent - Commissioner of Commercial Taxes, about the Rate of Tax applicable to Blood Collection Monitors, Blood Storage Refrigerators and Deep Freezers, Platelet Agitators with incubators and Plasma Expressers (Electrical and Manual) and Cryobaths, the learned Commissioner held affirming that the said goods would not fall within the ambit and scope of Entry 61 of the III Schedule to the KVAT Act, 2003, which reads as "61. Medical Equipments, Devices and Implants" taxable at the rate of 4% but would be taxable at the rate of 12.5% in the Residuary Entry as per Section 4(1)(b)(iii) of the KVAT Act, 2003. 2. The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 storage refrigerators are mandatorily prescribed to be used in blood banks as blood cannot be stored in regular refrigerators since they are not equipped with mandatory parameters like ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sult in any adverse reaction to patients after transfusion. This equipment is essential and mandatory for plasma therapy, and is used in cases of burns, and skin and intestinal diseases in order to replenish fluids and proteins lost from the human body. e. Plasma and Cryobath: These are used for uniform thawing of frozen plasma and frozen cryo precipitate at-40 degrees and 80 degrees Celsius, respectively. Frozen plasma is thawed at a temperature of 37 degrees Celsius to retain coagulations factors, which are essential for patients suffering from burns, dengue, and skin and intestinal diseases in order to replenish fluids and proteins lost from the human body. Cryo precipitate, on the other hand, is also thawed at 37 degrees Celsius to ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has tried to distinguish between the "Blood Bank Equipments" and "Medical Equipments" by submitting that certain equipments referred to above were only for the purposes of storing like Refrigerators used for storing Blood samples and therefore, they cannot be said to be "Medical Equipments" as they do not help in any diagnosis or treatment etc. of the human beings or animals. He, therefore, supported the impugned order passed by the Respondent - Commissioner of Commercial Taxes. 5. Having heard the learned counsels at the Bar, this Court is satisfied that the well settled legal principles for interpretation of various Entries under the Tax Laws are that such Commodities have to be interpreted in the manner in which the persons concerned wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Equip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT Act, 2003. 10. 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. 11. The learned Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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