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TMI Blog2020 (5) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaking from their customers that they would use it only for injections. It is an admitted fact that the product being supplied by the applicant can not be directly administered as injection. The concessional rate of GST is applicable only to the product Micafungin Sodium which is ready for administering by way of injection. In the instant case the applicant supplies bulk drug Micafungin Sodium to their customers and hence the said drug becomes raw material to the said customers. The applicant contends that their bulk drug is essential for `Micafungin Sodium for injection and hence their bulk drug gets covered under the entry for concessional rate of GST. The entry would have been `Micafungin Sodium , had the intention of the Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the applicant sought for advance ruling in respect of the following question: Whether the sale of Micafungin sodium by the DTA unit of the applicant is covered under Serial No.114 of Entry No.180 of the Notification No.1/ 2017-Central Tax (Rate) dated 28.06.2017 and therefore, is leviable to GST at the rate of 5%? 4. Admissibility of the application: The question is about applicability of a notification and hence is admissible under Section 97(2)(b) of the CGST Act 2017. 5. Applicant s interpretation of Law: 5.1 The applicant (DTA unit) procures the product Micafungin sodium from SEZ unit of the applicant, on filing of Bill of Entry, as required under rule 48 of SEZ Rules 2006, which is assessed as per Customs Law 85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are covered under the category of [Drug] for injection . 5.5 The applicant relies on the Hon ble Supreme Court s judgment in the case of Indian Chamber of Commerce Vs CIT, West Bengal II, Calcutta = 1975 (9) TMI 4 - SUPREME COURT , wherein the usage of the word Tor has been noted, and thereby contends that the word for is succeeded by the purpose for which it is meant to be used and therefore their product is eligible for reduced rate of GST as it is meant for the use specified in the notification, i.e. for injection. 6. In view of the above, the applicant submits that the impugned product (bulk drug) would be used by their customers to manufacture formulations or vials; the product may not be used directly for injection b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and selling the same as Bulk Drug to Third Party DTA units, who in turn use it for injections. The applicant submitted that Micafungin Sodium is an organic antifungal chemical and have provided a technical literature on it. 8.4 The applicant relied upon the United States Food and Drug Administration Regulations which defines, Bulk Drugs as any substance that is represented for use in a drug and that, when used in the manufacturing, processing, or packaging of a drug, becomes an active ingredient or a finished dosage form of a drug, but the term does not include intermediates in the synthesis of such substances. They have further relied upon United States Pharmacopeia (USP) to argue that the term, for injection can also connote dry sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c judgment of Westbury C., 1127) For has many shades of meaning. It connotes the end with reference to which anything is done. It also bears the sense of appropriate or adopted to : suitable to purpose vide Black s Legal Dictionary. An activity which yields a profit or gain in the ordinary course must be presumed to have been done for profit or gain. Of course, an extreme case could be imagined where without intent or purpose an activity may yield profit. Even so, it may legitimately be said that the activity is appropriate or adapted to such profit . 8.6 At this juncture, it is pertinent to mention here that the Larger Bench consisting of Five Judges of the Hon ble Supreme Court in the case of CIT Vs Surat Arts Silk Cloth M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant qualifies to be `Micafungin Sodium for injection , so as to attract the concessional rate of GST i.e. 5% GST. It is an admitted fact that the product being supplied by the applicant can not be directly administered as injection. The concessional rate of GST is applicable only to the product Micafungin Sodium which is ready for administering by way of injection. In the instant case the applicant supplies bulk drug Micafungin Sodium to their customers and hence the said drug becomes raw material to the said customers. The applicant contends that their bulk drug is essential for `Micafungin Sodium for injection and hence their bulk drug gets covered under the entry for concessional rate of GST. The entry would have been `Micafungin S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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