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TMI Blog2019 (2) TMI 1914X X X X Extracts X X X X X X X X Extracts X X X X ..... nal report). - Order No. 25 - - - Dated:- 20-2-2019 - VIVEK KUMAR JAIN AND HARI RAM, MEMBER PROCEEDING OF THE AUTHORITY FOR ADVANCE RULING U/S. 98 OF THE GOODS AND SERVICES TAX ACT, 2017 Sub:- GST ACT, 2017 - Advance Ruling U/s 98 - liability to tax under GST Act in respect to application dated 26.12.20 18 from M/s Dabur India Ltd., Ghaziabad, Uttar Pradesh - Order- Reg. ********** 1) M/s. Dabur India Ltd., Khasra No. 2834, 2835, 2836, Amka Road, Dhoom Manikpur, off NH-91, Dadri, Gautam Buddha Nagar, Uttar Pradesh (here in after called the applicant) is a registered assessee under GST having GSTN: 09AAACD0474C1Z3. 2) The Applicant is a Private Limited Company, resident in India, and is engaged in the manufacture of various Fast-Moving Consumer Goods (FMCGs) under various product categories such as Hair Care, Oral Care, Health Care, Skin Care, Home Care, Foods etc. 3) The Applicant has submitted application for Advance Ruling dated 26.12.2018 enclosing duly filled Form ARA-01(the application form for Advance Ruling) along with annexure and attachment. 4) The Applicant in his application has sought clarification and Advance Ruling for classification o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Dengue, Malaria, Chikungunya etc. Odomos and the like product are generally referred to in the market as 'mosquito repellents'. To understand the classification of Odomos, it is imperative to understand the meaning, scope and working of the expression 'mosquito repellents'. iii) According to 'Study of Safety of Mosquito Repellents, Volume 14, Issue 1 Version-II (January 2015), PP 42-45, 'mosquito repellents' can be of the following types:- a) Natural/plant repellents - Marigold, Thai lemongrass and Catnip; b) Plant derivatives - Citronella, Neem, Peppermint, Eucalyptus etc.; and c) Synthetic chemicals - Diethyl Toluidine (DEET) or NNDB, Allethrin, Bio-allethrin etc. iv) It is submitted that most 'mosquito repellents' available in the market are in the form of roll-on sticks, lotions, liquid vapors, sprays, coils, mats etc. which are meant to repel mosquitoes in a closed environment and are not meant for application on human body. However, Odomos is a product which is applied on human body to prevent mosquito bite. v) The Applicant submits that Odomos contains NNDB as an active ingredient which wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covers 'medicaments'. The term 'medicament' is not defined in the Customs Tariff Act. Thus, it is apposite to refer to the dictionaries to ascertain the natural meaning of expression 'medicament'. ii) The definition of the term 'medicament' as obtained from various sources is as under:- The term 'medicament' refers to a substance relating to medicine. The term 'medicine' has been defined in Concise Oxford English Dictionary [12th Edition (2011), Oxford University Press, refer page 888] as practice of diagnosis, treatment or prevention of a disease; and in the case of Sujanil Cholla Industries v. CCE, 2005 (181) ELT 206 (SC) (Full Bench: 3 Judges), the Apex Court held that the term refers to a product comprising of two or more constituents which have been mixed or compounded together for therapeutic or prophylactic use. iii) The above definitions reveal that 'medicaments' include substances of prophylactic use. Simply put, substances used to prevent diseases are covered within the scope of expression 'medicaments'. iv) It is submitted that diseases are classified based on the medium, for e.g. vect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it clearly indicate the disease or condition for which they are to be used, method of use, statement of use etc. Thus, the first criteria are fulfilled by Odomos. Regarding the second condition of Odomos having 'therapeutic' or 'prophylactic' properties, the Applicant submits that the expression 'therapeutic' or 'prophylactic' has not been defined either under the Customs Tariff Act, 1975 or Explanatory Notes to HSN. Here, reliance is placed on the decision of the Supreme Court in the case of ICPA Health Products Ltd. (P) Ltd. v. CCE, Vadodara, 2004 (4) SCC 481, wherein the Court after noting the meaning of the word 'prophylactic' from Concise Oxford Dictionary, 9th Edition., held that the expression prophylactic means a medicament intended to prevent diseases, a preventive medicine or course of action . T herefore, from the above, products qualifies as prophylactic product. 14) We have gone through the submission made by the Applicant and case laws submitted by them in their support. We find that heading 3808 of Chapter 38 of Customs Tariff Act covers a range of products (other than those having the character of medicaments, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Chapter-38 or under Chapter 30 of the Customs Tariff Act, 1975. We find that statue is very clear as far as the classification of items intended to repel pests is concerned and same evident from explanatory note to Chapter 38.08 of Customs Tariff which reads as under: This heading covers a range of products (other than those having the character of medicaments, including veterinary medicaments-heading 30.3 or 30.4) intended to destroy pathogenic germs, insects, (mosquitoes, moths, Colorado beetles, cockroaches, etc.) mosses and moulds, weeds, rodents, wild birds, etc. products intended to repel pests. These insecticides, disinfectants, herbicides, fungicides etc., are applied by spraying, dusting, sprinkling, coating, impregnating, etc., or may necessitate combustion. They achieve their results by nerve-poisoning, by stomach-poisoning, by asphyxiation or by odour, etc. From the above it is explicitly clear that the product odomos' achieves its result by odour which makes the conditions unattractive for mosquitoes when coated on human body and accordingly it appears well covered under chapter 38.08 of Customs Tariff Act adopted for the purpose of classif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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