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TMI Blog2021 (7) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... in Schedule II to the Notification No. 01/2017-Integrated Tax (Rate) dated 28-06-2017 (as amended) is applicable for import as well as supply of "Laboratory reagents for rapid testing of food safety parameters", attracting a levy of integrated tax at the rate of 12% or Entry No. 453 to Schedule III, attracting a levy of integrated tax at the rate of 18%? 4. Brief facts of the case: 4.1. The applicant is engaged in contract of chemical and microbiological testing services and trading (import and sale) of Neogen Group products in the Indian market. The range of trading items includes Neogen's food safety products comprising of kits and laboratory reagents for dangerous or unintended substances' testing for food safety parameters. Their products are used by food processing companies, regulatory bodies etc to manage the risk in food caused by pathogens and toxic substances. The exhaustive list of about 254 products dealt by them that are predominantly used for food testing in lab / field / mobile vans/ for testing of processed and unprocessed foods, juices, cereals, nuts, spices etc and raw materials like wheat, rice, corn, fruits, and also milk (aflatoxin), poultry (egg alle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Chapter Heading 3822 of the Customs Tariff are covered under the entry at SI No. 80 of the Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017. The decision is squarely applicable to their case. 5.3. The entry at SI No. 453 of Schedule III of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017 is a general / residuary entry. It is a well settled principle that in the case of classification of goods, the specific entry shall be preferred over a general entry. The laboratory reagents have specific entry at SI No. 80 of Schedule II of the said Notification and hence cannot be classified under residuary entry at SI No. 453 of Schedule III of the said notification. They placed reliance on the judgments of the Hon'ble Supreme Court in the cases of Commissioner Vs Wockhardt Life Sciences Ltd [2012 (3) TMI 40] and Mauri Yeast India Pvt Ltd Vs State of UP [2008 (4) TMI 101]. 6. Comments of the Jurisdictional Officer: The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act. The jurisdictional officer has not offered any comments and hence it is presumed that the jurisdictional officer has no specific comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection and Chapter Notes and the General Explanatory Notes are applicable for interpretation of the GST Tariff / Rate Schedule. Accordingly, the ratio of various judgments of the Supreme Court, High Court and Tribunals regarding classification of commodities under the Customs Tariff and Central Excise Tariff are equally applicable and have precedent value in relation to the classification of goods under the GST Tariff / Rate Schedule as the classification under the Customs and Central Excise Tariffs and the GST Tariff / Rate Schedule are aligned and based on the Harmonised System of Nomenclature Codes. [HSN Codes], 8.4. The General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 are as follows; Rule 1: The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions Rule 2: (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... article has, by all standards, a reasonable claim to be classified under an enumerated item in the Tariff Schedule, it will be against the very principle of classification to deny it the parentage and consign it to an orphanage of the residuary clause. The question of competition between two rival classifications will, however, stand on a different footing." 8.6 The Hon'ble Supreme Court in the case of CCE Vs Jayant Oil Mills Pvt Ltd reported in 1989 (40) ELT 287 (SC) observed, inter alia, as follows; "It is well settled that resort could not be had to the residuary item if the product comes within the ambit of any other tariff item." 8.7. In Bharat Forge and Press Industries (P) Ltd Vs CCE, Baroda reported in 1990 (45) ELT 525 (SC); the Hon'ble Supreme Court in Para 3, inter alia, observed as under; "The question before us is whether the department is right in claiming that the items in question are dutiable under Tariff Entry 68. This, as mentioned already, is the residuary entry and only such goods as cannot be brought under the various specific entries in the tariff should be attempted to be brought under the residuary entry. In other words, unless the department can esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods are the composition, the product literature, the label, the character of the product and the use to which the product is put. 9. In order to decide the issue, it is to be analysed in the light of the settled principles of classification of goods under the Customs Tariff as explained above; whether the products supplied by the applicant qualify to be classified under Customs Tariff Heading 3822 and is included in the purview of entry at SI No. 80 of Schedule II of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017. 9.1. Chapter 38 of the Customs Tariff pertains to miscellaneous chemical products. The Heading 3822 of the Customs Tariff is reproduced below; Tariff Description of goods 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 3822 00 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 diagnosis: 3822 00 11 ---- Pregnancy confirmation reagent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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