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TMI Blog2022 (1) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... rs for smile designing provided by dental clinic - classifiable under Chapter Heading 999312 at Nil rate of GST or Chapter Heading 999722 at 18% GST? Zirconium Oxide Ceramic Dental Blanks in different sizes - whether the impugned product can be called as a ceramic ware? - HELD THAT:- A reading of the Zircon Industry Association reveals that, Zircon is the primary mineral, which is a co-product from the mining and processing of ancient heavy mineral sand deposits. It is also referred to as zirconium silicate and has the chemical composition ZrSiO 4 . Zircon can be used either in its coarse sand form or milled to a fine powder, which is referred to as zircon flour. Zircon sand is used in the casting and foundry industries, whilst zircon flour is primarily used as an opacifier in the ceramics industry - Zircon can be processed to create zirconia by melting the sand at very high temperatures, typically above 2,600 C, in an electric arc furnace to form molten zirconia, also known as zirconium oxide (ZrO 2 ). The cooled and crushed zirconia is then used in many different applications including in advanced ceramics and biomedical implants. The subject product is described by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever the provision of fitment of artificial ceramic teeth, crown, bridges, dental restoratives carried out in applicant's clinic will be eligible for exemption only if they are carried out as a part of Health Care Services i.e. they are carried out as a diagnosis or treatment or care for illness, injury, deformity, or abnormality and not as a part of and including, cosmetic treatment. Whether health care services namely bleaching of teeth and dental veneers for smile designing provided by dental clinic of Applicant to its patients falls under Chapter Heading 999312 at Nil rate of GST or Chapter Heading 999722 at 18% GST? - HELD THAT:- As per the description given by the applicant in respect of Bleaching of teeth, it is found that, the same is a restoration of natural tooth shade or whitening beyond the natural shade. This process cannot be considered as services by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy - the said service is not covered under SAC 999312. In fact the said service is explicitly covered under SAC 999722 (Cosmetic treatment (including cosmetic/plastic surgery), manicuring and pedicuring services). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal clinic of Applicant to its patients falls under Chapter Heading 999312 at Nil rate of GST or Chapter Heading 999722 at 18% GST. At the outset, we would like to make it clear that the provisions of both the CGST Act and the GST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by M/s Jyoti Ceramic Industries Pvt. Ltd., the applicant are as under:- 2.1 The Applicant, situated at Plot No. C-21, NICE, Satpur, Nashik 422007, Maharashtra, India is engaged in the manufacture, sale export of various ceramic products, known as Industrial or Technical Ceramics . The Applicant is also engaged in running a dental clinic at separate location at 7, Rushiraj Heights, Mahatma Nagar, Nashik 422007, Maharashtra. 2.2 Applicant was registered under erstwhile tax regime and was discharging exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter milling they are sintered to give it final hardness which is more than 9 on Moh's scale final finishing, layering, etc is then carried. Hence Impugned product is the material for making artificial ceramic teeth. 2.6 The Product - Zirconium Oxide Ceramic Dental Blanks were classified under Chapter heading 69091200 under erstwhile Central Excise Act. As per guidance note to chapter heading 69, it applies only to ceramic products which have been fired after shaping . 2.7 the procedure for manufacture of - Zirconium Oxide Ceramic Dental Blanks is as follows: Clinical grade of Yittria stabilised zirconium oxide powder is taken and mixed with other ingredients like binders etc as per pre-defined recipe. After mix is prepared it is pressed by using different pressing technique to form a shape in form of round disc, rectangular blocks etc as required. The formed shapes are then finished and are biscuit sintered (fired) i.e. not fully sintered just to give it sufficient hardness to facilitate easy milling of artificial teeth, crown, bridges, dental restorative etc on CAD/CAM milling machines as enumerated above. 2.8 Artificial ceramic teeth, crown, bridges, dental rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer thin, custom made shells of tooth coloured ceramic designed to cover the front surface of teeth to improve facial appearance and/or smile. Above two services are classified by Applicant as under: 999722 Cosmetic treatment (including Cosmetic/plastic surgery) The applicant pays applicable GST at 18% on two services. Whether the healthcare service of providing of bleaching of teeth dental veneers treatment (smile designing) are classifiable under Chapter Heading 999312 attracting Nil rate of GST or CH 999722 attracting 18% GST. B. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW 2.11 Applicant is presently classifying Zirconium Oxide Ceramic Dental Blanks under Chapter Heading 69091200 and paying GST as per chapter heading note No.1, to Chapter 69 which specifies that this chapter heading applies to only ceramic product which has been fired after shaping. The product per se in its form is not artificial teeth, crown, bridges, dental restoratives etc, however product is made and solely design for production of artificial teeth, crown, bridges, dental restoratives etc. It is pertinent to note that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per prescribed standard. Based on the tests and the standards for its manufacture applicant is granted certificate as per EN ISO 13485:2016 and CE certification as per Directive 93/42/EEC on medical devices. Such tests and certification are not required for regular ceramic products which falls under Chapter Heading 6909. All these tests are required only for manufacture of bio-compatible ceramic from which artificial teeth are AINDU produced which falls under Chapter Heading 9021. Hence regular ceramic material cannot be used for production of bio-compatible ceramic products NASIK 122007 which in applicant's case falls under Chapter Heading 9021. Zirconium oxide ceramic dental blanks cannot be used in manufacture of other products given its cost and specific shape etc. Zirconium oxide ceramic dental blanks are produced in different grades having different translucency shades so as to match the aesthetic of natural teeth. This further strengthen the use of blanks only for making artificial teeths no other products. Similarly Ceramic Blanks manufactured from other material cannot be used for manufacture of artificial teeth given specification and bio-compatibility requiremen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncomplete or unfinished final product viz Artificial Teeth, hence merits classification under the same heading. 3. The general Rule of Interpretation also further classifies the term blanks . Zirconium oxide ceramic dental blanks are in trade termed as blanks only which are used for completion of finished article i.e. artificial teeth. 4. Zirconium oxide ceramic dental blanks are of particular shape thicknesses designed only for producing artificial teeth. Besides they come in different grades of translucency shades so as to look match the aesthetic of natural teeth. 03. CONTENTION - AS PER THE CONCERNED OFFICER: The jurisdictional/concerned officer has not made any submissions in the matter. 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 02.06.2021. Authorized Representative of the applicant, Shri. Viraf Deboo was present. Jurisdictional officer was absent. The Authorized Representatives made oral submission with respect to admission of their application. 4.2 The application was admitted and called for final e-hearing on 17.11.2021. The Authorized Representatives of the applicant, Shri. Viraf Deboo, Commercial director an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the impugned product can be treated as a ceramic ware and therefore is covered under Chapter 69 of the GST Tariff. 5.3.4 We find that 'Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic attract 12% GST as per Schedule II of Notification No. 01/2017 - C.T.R. dated 28.06.2017 (Entry No. 177A). Since the impugned product cannot be considered as Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic the same is not covered under the said Entry No. 177A of the above mentioned Notification. 5.3.5 We also find that, as per Entry No. 185 B of Schedule III of Notification No. 01/2017 - C.T.R. dated 28.06.2017, Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods attract 18% GST. 5.3.6 The impugned product, in light of the submissions made by the applicant and the above discussions, can be said to be a type of ceramic ware for use in laboratory, etc. and therefore we find that the impugned product is aptly c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 95 of the CGST Act, 2017, the said question cannot be answered by this authority. 5.5. The third question asked by the applicant is whether the health care services including providing of artificial Teeth, Crown, Bridges etc treatment by dental clinic of Applicant to its patients, under Chapter Heading 999312, attracting Nil rate of GST. 5.5.1 The Explanatory notes for the Scheme of Classification of Services is based on the explanatory notes to the United Nations Central Product Classification (UNCPC). The explanatory notes indicate the scope and coverage of the heading, groups and service codes of the Scheme of Classification of Services. 5.5.2 The Services Accounting Code (SAC) 9993 covers Human Health and Social Care Services. SAC 99931 covers Human Health Services. Accounting Code 999312 covers Medical and Dental Services. Service Code 999312 includes:- (i) general medical services consisting of the prevention, diagnosis and treatment by doctors of medicine of physical and/or mental diseases, such as:- a. consultations b. physical check-ups, etc. Note: These services are not limited to specified or particular conditions, diseases or anato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct anatomy or function of body affected due to congenital defects, development abnormalities, injury or trauma . 5.5.5 Para 2(k) of Notification No. 09/2017-IT(R) dated 28.6.2017 defines authorised medical practitioner as o medical practitioner registered with any of the councils of the recognised system of medicines established or recognised by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force . 5.5.6 As per Para 2(s) of Notification No. 09/2017- IT(R) dated 28.6.2017, clinical establishment means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnosis or investigative services of diseases. 5.5.7 The Applicant has submitted that it also operates a dental clinic wherein all dental treatment including the fitment of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the natural shade. As per the submissions, restoration of the underlying natural tooth shade is possible by removing surface stains caused by extrinsic factors, strainers such as tea, coffee, tobacco, pan etc. 5.6.2 As mentioned above, health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportations of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or function of body affected due to congenital defects, development abnormalities, injury or trauma 5.6.3 As per the description given by the applicant in respect of Bleaching of teeth, we find that, the same is a restoration of natural tooth shade or whitening beyond the natural shade. This process cannot be considered as services by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy. Further the definition of Health Care Services specifically excludes cosmetic or plastic surgery, except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Product is biscuit fired having hardness of less than 9 on Moh's scale or the product is classifiable under Chapter Heading 90212100 since Artificial Ceramic Teeth are produced from the product which has hardness of 9 on Moh's scale? Answer :- In view of the discussions made above, the Product namely Zirconium Oxide Ceramic Dental Blanks in different sizes as sold by Applicant are classifiable under Chapter Heading 69091200 Question 2:- Whether Artificial Teeth, Crown, Bridges, Dental Restoratives etc as produced from the Product of Applicant is classifiable under Chapter Heading 90212100. Answer :- Since the question raised by the applicant does not pertain to an activity being undertaken or proposed to be undertaken by them, the said question is not being answered by this authority as per the provisions of Section 95 of the CGST Act, 2017, Question 3: - Whether the health care services including providing of Artificial Teeth, Crown, Bridges etc treatment by dental clinic of Applicant to its patients, excluding health care services for bleaching of teeth and dental veneers treatment falls under Chapter Heading 999312, attracting Nil rate of GST? ..... X X X X Extracts X X X X X X X X Extracts X X X X
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