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TMI Blog2021 (1) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... 5%. They requested to determine the tax liability of their product falling under HSN 2919. 4. Accordingly, applicant sought Advance Ruling on the following question : 1. Classification of goods and determination of tax liability of product under HSN 2919 of following goods : Calcium-3-methyl-2oxo-valerate (Alpha-Ketoanalogue Isoleucine Calcium Salt), Calcium-3-methyl-2oxobutyrate (Alpha-Ketoanalogue Valine Calcium Salt), Calcium-4-methyl-2oxo-valerate (Alpha-Ketoanalogue Leucine Calcium Salt), Calcium-DL-2-hydroxy-4(methylthio) butyrate (Alpha-Ketoanalogue Methionine Calcium Salt, Calcium -2 oxo-3-phenyl propionate (Alpha-Ketoanalogue phenylalanine Calcium Salt) Applicant's interpretation of law and/or facts 5. The applicant submitted that as per Notification No. 01/2017-Ct (Rate) dated 28.06.2017 their products is liable to GST @ 5% in respect of goods specified in Schedule-I under Sr. No. 180 under Ch. 30 and under Schedule-1 List -1 Sr. No. 54 as such their product name is "Ketoanalogue preparation of essential amino acids". Personal Hearing 6. Personal hearing in the matter was held on 06-08-2020. Authorised representative of the company appeared on behalf of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 beings, or animals, including preparations applied on human body for the purpose of repelling insects like mosquitoes; Clause (i) of Section 3(b) defines a 'drug' as all medicines for internal or external use 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. 12. In Ishwar Singh Bindra Vs. The State of UP [(1969) 1 SCR 219], 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Learners defines 'medicine' thus: "Medicine is the treatment of illness and injuries by doctors and nurses; is a substance that you drink or swallow to cure an illness." 14.2 Cambridge Dictionary defines 'medicine' as: "A drug that is used to treat illness or injury; the science dealing 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. 15. 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. 16. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bulk drugs/raw material. Therefore 5% GST is not applicable to the bulk drug Alpha-Ketoanalogue Isoleucine Calcium Salt, Alpha-Ketoanalogue Valine Calcium Salt, Alpha-Ketoanalogue Leucine Calcium Salt, Alpha-Ketoanalogue Methionine Calcium Salt, Alpha-Ketoanalogue phenylalanine Calcium Salt, in terms of List I to Entry No. 180 of Schedule I to the Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. Further the applicant in his submission has stated that their product i.e. bulk drugs fall and intermediate under HSN 2919 and accordingly sought the ruling regarding rate of GST tax of the said goods. 19. The applicant has referred to Advance Ruling in the case of M/s. LAURUS LABS LTD {Order No. AAR/AP/03(GST)/2018, dated 28-3-2018} reported in 2018 (18) GSTL 58 (AAR-GST), wherein the Andhra Pradesh Authority for Advance Ruling held that,, "Pharmaceutical products - Efavirenz, Emtricitabine, Suntinib Malate, Raltegravir Potassium and Latanoprost - Rate of tax - Products though bulk drug covered under List 1 under Serial No. 180 of Schedule-I to Notification No. 1/2017-C.T. (Rate) and taxable @ 5% GST". The said Ruling is not applicable in the applicant case because the go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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