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TMI Blog2021 (1) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, in common parlance we can say that Bulk drugs is basically an Active Pharmaceutical Ingredients (API) meaning any pharmaceutical, chemical, biological or plant product, which is used as such or as an ingredient in any formulation. Thus, it is an admitted fact that the product being supplied by the applicant cannot be directly administered in a human being. The concessional rate of GST is applicable only to the medicine or drugs, which are ready for administering in the human being or person. In the instant case, the applicant supplies bulk drug to their customers and hence the said bulk drug becomes raw material to the said customers - The applicant contention is that their bulk drug i.e. Danuorubicin, Epirubicin, Idarubicin and Zoledronin Acid is covered under the entry No. 180 of Not. No. 01/2017-CT (Rate) dated 28.06.2017 and eligible for concessional rate of GST. In the said entry No. 180 of said Notification word Bulk Drugs would have been included, had the intention of the Government been to extend the benefit of concessional rate to the bulk drugs/raw material. Therefore 5% GST is not applicable to the bulk drug Danuorubicin, Epirubicin, Idarubicin and Zoledronin A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under : (14) Daunorubicin (155) Epirubicin (169) Idarubicin (229) Zoledronic Acid Schedule III- 18% Sl. No. Chapter Heading/Sub-heading/Tariff Item Description of goods 1 2 3 40 29 All organic chemicals other than giberellic acid 6. In view of the above, the applicant sought for the Advance Ruling in respect of the following question: Whether the applicant is eligible to claim the benefit of lower rate of 5% {CGST- 25.% + SGST-2.5%} under Sr. No. 180 of Schedule I of the rate schedule for goods under Not. No. 01/2017-CT (Rate) dated 28.06.2017 as well as of State Tax Notification. Applicant s Interpretation of Law/Taxation under GST Regime 7. The applicant has submitted that as mentioned above, Chapter 30of GST Tariff of India covers Drugs or Medicines including their salts and esters. According to their interpretation, the word Drugs is not qualified by any other word which would restrict its coverage and therefore in their humble submission the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Authority for Advance Ruling is as under, The applicant is eligible to claim the benefit of lower rate of GST @5% under Sr. No. 180 of Schedule-I of the rate schedule under Not. No. 01/2017-CT (Rate) Dated 28.06.2017 read with corrigendum dated 30.06.2017on supply of 1. Efavirenz 2. Emitricitabine 3. Suntinib Malate 4. Raltegravir Potassium 5. Latanoprost. 12. The applicant further submitted that based on the aforesaid submission, as per the Notification No. 01/2017-CT (Rate) dated 28.06.2017 and Order No. AAR/AP/03(GST)/18 dated 28.03.2018 = 2018 (6) TMI 460 - AUTHORITY FOR ADVANCE RULING-ANDHRA PRADESH issued by Andhra Pradesh Authority of Advance Ruling, they may be allowed to supply of their buyers the four products namely Danuorubicin, Epirubicin, Idarubicin and Zoledronin Acid at the lower rate of 5% to be covered as per entry under Sr. No. 180 of Schedule I of the Not. No. 01/2017-CT (Rate) dated 28.06.2017 Personal Hearing 13. Personal hearing in the matter was held on 02-07-2020. Authorised representative of the company appeared on behalf of the applicant and re-iterated the submission made in the Application. DISCUSSION FINDINGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of human beings or animals and all substances intended to be used for or in the diagnosis, treatment, mitigation or prevention of any disease or disorder in human being, or animals , including specified preparations. 19. In Ishwar Singh Bindra Vs. The State of UP [(1969) 1 SCR 219] = 1968 (5) TMI 56 - SUPREME COURT , the central question before a three judge Bench of this Court was the interpretation of Section 3(b)(i) of the 1940 Act. The Hon ble Court held, 16. The term medicine is not defined in the 1940 Act. It is a trite principle of interpretation that the words of a statute must be construed according to the plain, literal and grammatical meaning of the words. Justice G.P. Singh in his seminal work Principles of Statutory Interpretation states: The words of a statute are first understood in their natural, ordinary or popular sense and phrases and sentences are construed according to their grammatical meaning, unless that leads to some absurdity or unless there is something in the context or in the object of the statute to suggest the contrary...in the statement of the rule, the epithets natural , ordinary , literal , grammatical and popular are em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aling with the preserving of health and with preventing and treating disease or injury. The ordinary or popular understanding of the term medicine or drugs is characterized by its curative properties in general and specifically, its use for or in diagnosis, treatment, mitigation or prevention of any disease or disorder. 22. Note I of SECTION VI of PRODUCTS OF THE CHEMICAL OR ALLIED INDUSTRIES of the Customs Tariff Act, 1975 reads as under: 2. Subject to Note 1 above, goods classifiable in heading 3004, 3005, 3006, 3212, 3303, 3304, 3305, 3306, 3307, 3506, 3707 or 3808 by reason of being put up in measured doses or for retail sale are to be classified in those headings and in no other heading of this Schedule. 23. In view of the above deliberate discussion, it is crystal clear that under Sr. No. 180 of Schedule-I of Not. No. 01/2017-Ct (Rate) dated 28.06.2017, as amended, only such medicine and drugs are covered, which can be used for or in diagnosis, treatment, mitigation or prevention of any disease or disorder in human beings. 24. The term bulk drugs is not defined in CGST, Act 2017. Therefore, we take the reference from DRUGS (PRICES CONTROL) ORDER, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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