RATE OF TAX ON DENTISTS' CHAIRS, INSTRUMENTS & APPLIANCES

[Sadanand Bulbule]

Dear experts,

Please clarify the HSN Code and the rate of GST with relevant notification issued by the GOI on the following goods:

1] Dentists' Chairs.

2] Instruments and appliances used in dental sciences.

If possible, any rulings on the classification of above goods rendered during pre or post GST regime.

[Sadanand Bulbule]

Dear all

Plz refer my reply at Sl No. 26 dated 22/09/2023, wherein it was categorically clarified that, no one including the GOI & the GST Department is authorized to modify the classification of goods under the Customs Tariff Act.

In support of this, recently the Hon'ble Madras High Court in its ruling rendered in the case of Parle Agro Pvt Ltd - 2023 (11) TMI 601 - MADRAS HIGH COURT has held that, the GST Council cannot classify the goods under the Customs Tariff Act, 1975.

So the adjudicating authorities are informed not to venture for such futile attempt. Rather calmly study the CTA and the GST Act conjointly to arrive at the proper, sustainable and judicious decision in the interest of equity. Revenue is more safe when the law is respected.

[Sadanand Bulbule]

Dear all

It is official.

1. The Customs Authorities, GOI, have classified "Dental chair incorporating dental appliances of 9018 or dental spittoons of 9018" under HSN Code 9018 4900 during pre-GST and post GST regimes. Accordingly since 01/07/2017, the said authorities are collecting 12% IGST under Section 3[7] of the CTA, 1975 on import of such goods. This classification is arrived at based on the technical specifications of the subject goods. This fact has been evidenced by the "Bills of Entry" of importers as mandated under Section 46 of the Customs Act,1962. As such 12% tax applies on such goods supplied in the course of intra-state and inter-state also. The CGST Authorities in Bengaluru have also accepted the classification of subject goods under the same HSN Code in their audit proceedings under Section 65 of the GST Act, 2017 itself.

2.Here the reference of General Rules of Interpretation [GRI] under the CTA, 1975 is very crucial as officially clarified by the Chief Commissioner of Customs, GOI, Karnataka, Bengaluru vide its letter F. No. CCCO/TECH/REP/229/2023-Tech dated 11/12/2023 addressed to me. In this regard, I remain grateful to the Chief Commissioner of Customs.

3. I deeply acknowledge the resourceful contributions of Sh. Sethi Sir and Sri. Kallesh Murthy in taking this issue to the logical end.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, Credit goes to your critical thinking, firm determination, bent of mind (fight-up-to-the-end0. Your these virtues have yielded positive result. Undoubtedly, it is the result of joint efforts but you have played a vital role. Really with achievement of our goal, I am on cloud nine.

[Sadanand Bulbule]

Dear all

With all this authentic deliberations I regret to inform that, the State GST officers are still incompetent to understand the basics of classification of goods under HSN as per the Customs Tariff Act,1975 to determine rate of tax under the GST Act. Consequently grave adjudication orders are coming out relentlessly.

Therefore I earnestly appeal to the GOI, the CBIC and the heads of State Commercial Tax Administration to take note of this fatality. The simple solution is qualified IRS officers serving in the Customs Department be deputed to each State Commercial Tax Administration on par with Kerala State to bring quintessential clarity of universal HSN and to instill professionalism. And it would be a huge asset to generate quality revenue. This is possible only when there is no egocentric attitude on the receiving side. Otherwise owing to grave orders, victimized taxpayers would be transported to graveyards regularly.

Is this what the GST system is meant for? Never. A tree which doesn’t give shadow must be rooted out mercilessly.
Time is waiting for better change at least on the dawn of New Year-2024.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, The matter should be brought to the notice of the Chairperson, GST Council through All India Trade & Industry Association.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, In order to get natural justice, in additional to filing appeal, please also send a copy of Order-in-Original, SCN, copy of reply to the SCN and copy of the copy of above discussion in this forum to the Chairperson, CBIC. New Delhi

I hope you will get justice and it will solve problem of others on this issue.

[Sadanand Bulbule]

Dear Sirji

I have emailed all the related records including TMI discussion to the Chairman, CBIC and the Commissioner [Legal Affairs] CBIC requesting to issue a suitable circular to remove the artificial clouds seeded by the State GST Officers.

Thank you so much for evincing keen interest to get this needless dispute solved in the larger benefit of the trade and industry.

[KASTURI SETHI]

Dear Sir,

I am dead sure that your sincere all-out efforts will yield results in favour of Trade & Industry, rather, in the interest of natural justice and, in turn, in the interest of the whole nation (BHARAT). Injustice at the hands of Original Adjudicating Authority is not the end of the road.

One more humble request. Pl. email gentle reminder to both every fortnight.

[Sadanand Bulbule]

Dear Sirji

Thank you so much for wishing the best of the best for the nation's growth this way. Besides, very shortly I am filing a Writ Petition under Article 226 before the Hon'ble State High Court challenging the validity of mindless and meaningless adjudication order. I know the bunch of super-enlightened brains behind the outcome of this shoddy order. And I am prepared to take up this matter even before the Hon'ble Supreme Court, if need be.

One can hide the truth, but not from the truth.

[Sadanand Bulbule]

Dear all

On 18/01/2024, we had filed Writ Petition No.2094 of 2024 in the Hon'ble High Court of Karnataka, Principal Bench at Bengaluru under Article 226 challenging the legality of foisting unimaginable amount of tax, interest and penalty on the subject goods under discussion.

Today after hearing the petitioner and the Government Advocate, the Hon'ble High Court is pleased to pass an interim order "staying the operation of the impugned order dated 30/12/2023 until the next date of hearing".

[KASTURI SETHI]

Dear Sir,

You have achieved a real milestone. Hope that your destination is not far away.. Stay Order by High Court is not a small matter.

[Sadanand Bulbule]

Dear Sirji

Your real time contribution is precious, voluminous and really commendable. You are also partner in this interim victory. My salutes to you Sir.

[KALLESHAMURTHY MURTHY K.N.]

S. Bulbale Sir,

Your immense efforts will bring positive results.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, I do not deny my contribution but there is no hesitation in accepting the fact that regarding your high level of art of drafting I stand nowhere.

AI Summary

Classification of dentists' chairs as medical instruments determines lower GST liability under HSN 9018 versus furniture rates.
Dentists' chairs that incorporate dental appliances or spittoons are excluded from Chapter 94 by Chapter Note 1(ij) of the Customs Tariff Act, 1975 and, based on functional character and predominant use, are classifiable under HSN 9018 (instruments and appliances used in dental sciences) for GST purposes. Notifications setting GST rates must harmonize with the Customs Tariff Act and cannot override chapter or section notes. Where classification is doubtful the revenue bears the onus and the assessee gains the benefit of doubt; authoritative classification or judicial remedies may be pursued to resolve disputes.