TaxTMI 
TaxTMI 
2019 (8) TMI 281
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.... Wipes" with 2% Chlorhexidine Gluconate and supply it to the dealers. They have sought Advance Ruling on the following question: "Applicable rate of tax on the sales (supply) of "Wet Wipes"" The Applicant has submitted the copy of application in Form GST ARA - 01 and also copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017. 2. The applicant has stated that the "Wet Wipes", which they intend to manufacture is made up of Non-Woven Cellulose material. It is an Anti-Bacterial Product which is used as a Sanitary towel to wipe the private parts of Male & Female who are bed ridden or old aged people and that this would prolong the occurrence of Bed-sore. They have further stated that this product is different from general wet wipes which are available in all Departmental Stores. This product is used only for specific purpose i.e., only for bed ridden or old aged people and sold in Medical Shop only. ; that they came to understand that the dealers who are dealing in "Wet Wipes" are charging 6% CGST + 6% SGST under Entry 235(HSN Code 9619) of Schedule Il of the Central Goods and Servi....
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....t up in measured doses (including those in the form of transdermal administration systems) or in forms or packing for retail sale, including Ayurvedic, Unani, Homoeopathy & Siddha or Bio-chemic systems medicaments put up for retail sale. 3.2. The applicant vide their letter dated 25.04.2019 requested for Orders and submitted the following documents (received on 29.04.2019) i. original article published in "The New England Journal of Medicine" about the effect on the usage of the applicant's product. ii. Details of raw materials used and the composition in the manufacture of their product iii. Process Flow Chart iv. Copy of sale bill issued to a patient by M/s. IP Pharmacy, Dr. V.Balaji Dr. V. Seshiah Diabetes Care and Research Institute, Chennai 600029 in Bill No. C01000774 dated 22/04/2019 v. Proforma Invoice 3.3 The articles furnished are on the 'Effect of Daily Chlorhexidine Bathing on Hospital- Acquired Infection'. The composition of raw materials used in the manufacturing process of wet wipes as submitted by the applicant is tabled below: COMPOSITION Chlorhexidine Gluconate 2% Antibacterial Glycerin 0.5....
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....ows: 1. This Chapter does not cover: (e) preparations of headings 3303 to 3307, even if they have therapeutic or prophylactic properties; CTH 3004 : Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of mixed or unmixed products for Therapeutic or Prophylactic uses, put up in the measured doses (including those in the form of transdermal administration systems or informs or packings for retail sale). The Explanatory Notes(HSN) to Chapter Head 3004 is as follows: This heading covers medicaments consisting of mixed or unmixed products, provided they are: (a) Put up in measured doses or in such as tablets, ampoules (for example, re-distilled water, in ampoules of 1.25 to 10 cm^3 for use either flor the direct treatment of certain diseases, e.g., alcoholism, diabetic coma or as a solvent for the preparation of iniectible medicinal solutions). Capsules, cachets, drops or pastilles, medicaments in the form of transdermal administration systems, or small quantities of powder, ready for taking as single doses for therapeutic or prophylactic use. The heading also includes measured doses in the form of transdermal admi....
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....--- Tampons 96190030 --- Napkins and napkin liners for babies 96190040 --- Clinical diapers 96190090 --- Other The Explanatory Notes to the chapter reads as: 96.19 Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material. This heading covers sanitary towels (pads) and tampons, napkins (diapers) and napkin liners for babies and similar articles, including absorbent hygienic, nursing pads, napkins (diapers) for adults with incontinence and pantyliners, of any material. In general, the articles of this heading arc disposable. Many of these articles are composed of (a) an inner layer (e.g., of nonwovens) designed to wick fluid from the wearer's skin and thereby prevent chafing; (b) an absorbent core for collecting and storing fluid until the product can be disposed of; and (c) an outer layer (e.g., of plastics) to prevent leakage or fluid from the absorbent core. The articles of this heading are usually shaped so that they may fit snugly to the human body. This heading also includes similar traditional articles made up solely of textile materials, which are usually re-u....
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....materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable." Since primary function of the article should be taken into consideration while deciding the classification, it is clear that the essential character of the wipes in the instant case is imparted by the components which are to be mixed with the textile material. iv. As per the explanatory notes to the HSN, the HS code 5603 clearly excludes nonwoven, impregnated, coated or covered with substances or preparations such as perfumes or cosmetics, soaps or detergents, polishes, creams or similar preparations. The HSN is reproduced as follows : "The heading also excludes: Nonwoven, impregnated, coated or covered with substances or preparations [i.e. perfumes or cosmetics (Chapter 33), soaps or detergents (heading 3401), polishes, creams, or similar preparations (heading 3405), fabric, softeners (heading 3809)] where the textile material is present merely as a carrying medium. Further,....
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.... or not perfumed or having disinfectant properties. 33079090 cover others Explanatory Notes to chapter 3307 states (V) Other products, such as : (1) Depilatories. (2) Scented sachets containing parts of aromatic plants used for perfuming linen cupboards. (3) Perfumed papers and papers impregnated or coated with cosmetics. (4) Contact lens or artificial eye solutions. These may be for cleaning, disinfecting, soaking or enhancing comfort during wear. (5) Wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics. (6) Animal toilet preparations, such as dog shampoos, and plumage-improving washes for birds. (7) Sodium chloride solutions put up for hygiene use in packings for retail sale, other than medical or pharmaceutical, whether or not sterile. From the said clarification issued by CBIC based on the decision arrived at the GST Council on wet baby wipes, it is evident that wipes with textile material as a carrying medium will be classified under CTH 3307. In the case at hand it is seen that in the products of the applicant, from the submissions that the Non-woven fabric is the med....