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TMI Blog2020 (1) TMI 1385X X X X Extracts X X X X X X X X Extracts X X X X ..... mean all diagnostic kits and all diagnostic reagents. It does not include the laboratory reagents as argued by the applicant. Further, the configuration of diagnostic kits reveal that some reagents are also essential parts of the diagnostic kits. If these diagnostic reagents are removed/ separated from the kit, the kit will lose the utility of diagnosis. For example Ouchterlony Double Diffusion kit has Agarose as reagent. The term and used in the Entry No. 80 of Schedule II of rate Notification all diagnostic kits and reagents in this Entry essentially means diagnostic reagents. The Tariff Heading 3822 00 11 and 3822 00 12, 3822 00 19 and 3822 00 90 also applies to goods for medical diagnostic. So, it is clear that the term diagnostic kits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment Research Institutions for scientific and laboratory research purposes. The Applicant has been importing the reagents under Tariff Heading 3822 since the pre-GST regime and supplying the same to government research institutions. 2.2 Under the erstwhile Central Excise Tariff regime, Chapter 3822 of CETA was structured similarly with Customs Tariff. With effect from 1st July 2017, under the new GST Regime, Central Excise Tariff Act, 1985 has been repealed by sub-section (1) of section 174 of the Central Goods and Services Act, 2017 and the products imported and supplied by the Applicant are covered under Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 35/2017- State Tax (Rate) dated 30.06.2017(as ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), dated 28th June, 2017, "Goods which are not specified in Schedule I, II, IV, V or VI". 3. Applicant's interpretation of law and facts: 3.1 Chapter 38 of the HSN Classification covers Miscellaneous Chemical Products. Tariff Heading No. 3822 of custom tariff act reads as under: Tariff Item Description of goods Unit 3822 Diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, other than those of heading 3002 or 3006; certified reference materials 382200 Diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, other than those of heading 3002 or 3006; certified reference materials ---For medical diagn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retation of above table. The organisation and scheme of Customs tariff heading 3822 demonstrates that tariff sub-heading 3822 00 90 covers laboratory reagents. Based on Explanation 1, it has submitted that the "Tariff item", "sub-heading" "heading" and "Chapter" shall be looked into GST by reference to what has been specified in the First Schedule to the Customs Tariff Act, 1975. Tariff Item No. 3822 is specifically covered in S.No. 80 of II Schedule to the CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017. Explanation 1 gives cross reference to First Schedule to the Customs Tariff Act, 1975 for the purpose of interpreting GST Tariff. Therefore, any item in Tariff Heading 3822 cannot be classified under "Goods which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative Rules was referred to and the Supreme Court reiterated that the Heading which provides the most specific description shall be preferred to the Heading providing a more generic description. * Based on the above submission, as the tariff item is specifically covered at S.No. 80 of Schedule II, it cannot be covered under general heading at S.No. 453 of Schedule III "Goods which are not specified in Schedule I, II, IV, V or VI". 3.4 Anomaly in GST Classification and HSN Classification under Customs: The HSN classification reads as under: 3822: Diagnostic or laboratory reagents on a backing, prepared diagnostic Apia or laboratory reagents whether or not on a backing, and certified reference materials; and GST Notification reads as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion which leads to conclusion that the Entry covers the reagents which may be either used in the laboratory or diagnosis. 4.2 In essence, the issue before this Authority is whether the term reagents used at Serial No. 80 Tariff Heading 3822 of Notification No. 1/2017-Integrated Tax (Rate), New Delhi dated 28.06.2017 covering description "All diagnostic kits and reagents", covers only diagnostic reagents both diagnostic as well as laboratory reagents. It is important to differentiate between a diagnostic and a laboratory reagent. A diagnostic reagent is a reagent used for evaluation of physical, bio-physical or bio-chemical process in human being and animals whereas prepared laboratory reagents includes other reagents also, besides those u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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