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TMI Blog2024 (2) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- The product under consideration is not excluded under the explanatory notes to the heading 39.23 and the product is squarely covered under the sub-heading 39.23.90 - On going through the Tariff item 39.23.90.20, it is observed that the description is Asecptic bags . The term Aseptic is commonly known as the state of being free from disease causing micro-organisms. There are two categories of asceptic : medical and surgical. General asceptic fields are used when key parts can be easily protected using a combination of micro-critical fields and non-touch technique. Examples of general asceptic fields include sterile dressing packs, IVC starter kits etc. Therefore, the product manufactured by the applicant i.e sterilization reels and pouches may be classifiable under Tariff item 39.23.90.20. However, the product manufactured by the applicant is Sterilization reels and pouches and therefore the product is not limited to Asceptic Bags as specified in Tariff item 39.23.90.20. But the applicant is manufacturing sterilization products which safely fall under residual Tariff item i.e Others of 39.23.90.90. - SHRI AMIT KUMAR AND SHRI HARILAL PRAJAPATI, MEMBER Represented by : Ashu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to clarification to use correct one from below give HSN codes:- I. HSN code 300590 with GST at the rate of 12%. II. HSN code 39239090 with GST at the rate of 18%. The Applicant is willing to determine the correct HSN code and rate of GST applicable to their products and ensure that they comply with the applicable tax laws. 6. The applicant has submitted their interpretation of law as under- What is the correct HSN code to be used for Sterilization Reels and Pouches manufactured by our company? 1. As per the Chapter 39 of the CGST Tariff, Plastics And Articles Thereof - 2. As per the Chapter 30 of the CGST Tari ff, Pharmaceutical Products Let's evaluate the terms used in the above clause:- In common parlance the meaning of following terms are as under:- Chapter 39 Plastics and Articles Thereof. Chapter 30 Pharmaceutical Products 3.0 Our Understanding and Interpretation:- 3.1 According to Chapter 30 of die CGST Tariff, pharmaceutical products are classified under CGST Tariff and attract a tax rate of 12%. Based on the above information, it is evident that invoicing for pharmaceutical products should be done under Chapter 30 with the given different HSN Code by the Manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it should be put in measured doses or for retail sale. The present product is not at all for retail sale as the applicant has themselves stated that the product is not medical equipment in its own or a pharmaceutical product but the packing material used for sterilized packing for the medical equipment. Furthermore, heading 30.05 of schedule attached to Customs Tariff Act, 1975 reads as under:- 30.05- Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes. From the plain reading for the explanatory notes and the Section Notes it can be said that the product under consideration is neither for medical, surgical, dental or veterinary purposes nor it is the product put up for retail sale It is the product for use in packing of medical equipment and for end use at institutional level and not for retail sale or retail packing. Therefore, the heading 30.05 is ruled out for the product under consideration. 7.2 In order to examine tariff item 39.23.90.90, as suggested by the applicant, for it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pouches manufactured by us under the said HSN code? 13. The applicant further wants the clarification to use correct one from the following two HSN Codes,- a. HSN Code 300590 with GST at the rate of 12%; or b. HSN Code 39239090 with GST al the rate of 18%. 14. From the description and information given for the product under consideration, it is clear that the product is not medical equipment but is the packing material which keeps the medical equipment sterilized after packing till the same is put to use at the end. The applicant has sought clarification as to whether the said product is classifiable under HSN Code 30.05 or not. As per Explanation (iii) of Notification 01/2017-Central Tax (Rate) dated 28.06.2017, the Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Further, Explanation (iv) of the said Notification mandates that The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be in the piece, in discs or in any other form. Wadding and gauze for dressings (usually of absorbent cotton) and bandages etc., not Impregnated or coated with pharmaceutical substances, are also classified in this heading, provided they are put up in forms or packings for retail sale directly to private persons, clinics, hospitals, etc., without repacking, and usually are recognizable by their characteristics (presented in rolls or folded, protective packaging, labelling, etc.) as exclusively intended for medical, surgical, dental or veterinary The heading excludes bandages, adhesive plasters, etc., containing zinc oxide, and plaster-coated fracture bandages, not put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes. 14.3 From the plain reading for the explanatory notes and the section notes it can be said that the product under consideration is neither for medical, surgical, dental or veterinary purposes nor it is the product put up for retail sale. It is the product for use in packing of medical equipment and for end use at institutional level and not for retail sale or retail packing. Therefore, the heading 3005 is ruled out for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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