TaxTMI 
TaxTMI 
TaxTMI 
2020 (5) TMI 222
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....ction 97 of CGST Act, 2017 read with Rule 104 of CGST Rules 2017 86 Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The applicant (DTA unit) is engaged in manufacture of generic active pharmaceutical ingredients (APIs), novel biologics, biosimilar insulins and antibodies. The applicant purchases "Micafungin Sodium" from the SEZ unit of M/s. Biocon, who imports and sells the same, after processing, as bulk drug. The applicant sells the bulk drug, so purchased, to third party customers, who in turn uses for preparations of injections. 3. In view of the above, the applicant sought for advance ruling in respect of the follow....
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....customers, said drug is used by the customers for supply of the same for injection. The term 'bulk drug' is not defined under the GST law and hence if it is capable of being utilized for injection, it gets covered under Sl.No.114 of List I, specified under Entry No.180 of Schedule I of the Notification supra and therefore is leviable to GST @ 5%. 5.4 The applicant, in this regard, draws reference to the Nomenclature guidelines provided by the US Pharmacopeia which states/gives the meaning of the phrase "for injection" and contends that "any drug in the form of dry solids which confirms with the requirements of injection on addition of a suitable vehicle are covered under the category of [Drug] for injection". 5.5 The applicant relies on t....
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....uthorised representative of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 8.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.3 The applicant is engaged in procuring 'Micafungin Sodium' from their SEZ unit after paying IGST at the rate of 5% and selling the same as Bulk Drug to Third Party DTA units, who in turn use it for injections. The applicant submitted ....
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.... on the basis of the judgment of Hon'ble Supreme Court of India in the case of Indian Chamber of Commerce Vs CIT West Bengal II, Calcutta = 1975 (9) TMI 4 - SUPREME COURT. The aforesaid SC judgment is in relation to the Income Tax Act and the Hon'ble Supreme Court, while discussing the Income Tax exemption, under `charitable purpose' whether the activity (of Income Tax Payer) is for profit or not, have noted the meaning of 'for' as under: Further, what is an activity for profit depends on the correct connotation of the preposition. 'For' used with the active participle of a verb means for the purpose of (Sec judgment of Westbury C., 1127) 'For' has many shades of meaning. It connotes the end with reference to which anything is done. It a....
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....pply, in terms of CGST Act 2017. 8.8 The phrase "Micafungin Sodium for Injection" very clearly specifies the manner of administering Micafungin Sodium in the body. The applicant, during the personal hearing, with regard to possibility of administering Micafungin Sodium by any way other than injection, have not put anything on record but have stated that they take a certificate/ undertaking from their customers that they would use it only for injections. 8.9 In view of the foregoing the question before us to decide is whether the bulk drug `Micafungin Sodium' being supplied by the applicant qualifies to be `Micafungin Sodium for injection', so as to attract the concessional rate of GST i.e. 5% GST. It is an admitted fact that the product b....