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TMI Blog2018 (7) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... on process which involves freezing the product, lowering pressure, then removing the ice by sublimation. Freeze drying results in a high quality product because of the low temperature used in processing - the application of the process of lyophilization is found not only in pharmaceutical industry, but also in various other industries - On examination of the process of Lyophilization, it is found that the goods “ Lyophilizers” are classifiable under Tariff heading 84198990 as per the Section notes to Section XVI and Chapter notes to Chapter 84 of the Customs tariff. As the rules for interpretation of Customs Tariff Act, 1975 was made applicable to GST Tariff, the goods “ Lyophilizers” are classifiable under heading 8419 of the GST Tariff. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST/TGST Rules, 2017and sought Advance Ruling on the following issues: (i) The rate of tax applicable as on 15.11.2017 on the Lyophilizers- Machinery for the plant which is being cleared under chapter heading 8419. 2. The applicant submitted the application in Form GST ARA-01 and Statement containing the applicant s interpretation of law relevant facts and requested for advance ruling on the Lyophilizers- Machinery for the plant which is being cleared under chapter heading 8419.They have submitted a copy of Challan evidencing payment of application fee of ₹ 5,000/-. 3. The applicant has submitted detailed statement of facts having a bea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re subjected to steam sterilization by using high pressure steam to sanitize the complete system. (c ) Use in the Industry and classification: Lyophilizers are considered as capital equipment in Pharma industry. The above machinery is used in drug Pharmaceutical Industry for the manufacture of vaccines/Injectables which are life saving drugs. Therefore, Lyophilizers in other words can be called as Machinery meant for manufacturing life saving drugs . HSN Code used for clearance: The above goods are being cleared under chapter heading 8419. 3.3 From 01.07.2017 to 14.11.2017, the applicant collected and paid GST at the rate of 14% since the above machinery was not finding place in any entry of the goods enumerated in any of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his interpretation of law and/ or facts, as the case may be, on the issue on which advance ruling was sought as follows: (a) The above goods are being cleared under chapter heading 8419 which is notified for the levy of GST at 9% vide Notification No.41/2017- Central Tax(rate) dated 14.11.2017 i.e., in respect of the amendments carried to schedule III- 9% vide (lxxx) i.e., in the substituted version of Entry No.320 in the said schedule. (b) The above goods falls under Machinery in the substituted version of Entry No.320 of schedule III. (c) The goods manufactured and cleared by the applicant discharges the function of process involving a change in temperature i.e Heat exchange which is notified in the above notification against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the manufacture of vaccines/Injectables which are life saving drugs, the applications of freeze drying is also found in food processing industry as the flavours, smells and nutritional content generally remain unchanged, making the process popular for preserving food. However Pharmaceutical companies often use freeze-drying to increase the shelf life of the products, such as live virus vaccines, biologics and other injectables. By removing the water from the material and sealing the material in a glass vial, the material can be easily stored, shipped, and later reconstituted to its original form for injection. Thus the application of the process of lyophilization is found not only in pharmaceutical industry, but also in various other ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id Schedules . 11. As per S.No.320 to Schedule - III of the Notification No. 41/2017 dated 14.11.2017, Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, non-electric [other than Solar water heater and system] falling under heading 8419 of the GST Tariff have been brought under Schedule-III of the Notification, no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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