TaxTMI 
TaxTMI 
2020 (1) TMI 1385
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....The applicant has filed an application for advance ruling before this Authority seeking ruling on the following issue: 1.2 Whether "LABORATORY REAGENT" is classifiable under Tariff Heading 38220090 at S.No.80 of Schedule II or as "Goods which are not specified in Schedule I, II, IV, V or VI" at SI. No. 453 of Schedule III under the CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017 (as amended) and Notification No. 35/2017- State Tax 2 dated 30.06.2017 (as amended). 2. Submissions made by the Applicant: 2.1 The Applicant is engaged in the business of importing and supplying the laboratory reagents to Government Research Institutions for scientific and laboratory research purposes. The Applicant has been importing....
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....ated 28th June, 2017. 2.4 Recently, the Customs Appraising Department, has observed that the laboratory reagents classified under Tariff Heading 3822 for customs purposes cannot be classified under the same Tariff head for the purpose of levy of IGST. As per the Customs Appraising Department S.No.80 of Schedule II to the CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017 describes "All diagnostic kits and reagents" which covers only diagnostic reagents and not laboratory reagents. According to them, IGST should be charged @18% under the residuary S.No. 453 of the Schedule III of CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017, "Goods which are not specified in Schedule I, II, IV, V or VI". 3. A....
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....ll diagnostic kits and reagents under Tariff Heading 3822. 3.3 In order to interpret the CGST and SGST notification, it is important to read explanation to the above notification. Explanation to CGST Notification No.1/2017-Central Tax (Rate), dated 28th June, 2017 which very clearly states as under: Explanation. - (1) In this Schedule, tariff item, heading, sub-heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Sc....
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....ation by the Customs Appraising Department is blatantly contrary to the said Rule. The applicant has also placed reliance on the decision of the Hon'ble Supreme Court in the case of HPL Chemicals Ltd.-vs.-Commissioner of Central Excise, Chandigarh, 2006 = 2006 (4) TMI 1 - SUPREME COURT wherein it was held that classification of goods is a matter relating to chargeability and the burden of proof is squarely upon the Revenue. If the Department intends to classify the goods under a particular heading or sub-heading different from that claimed by the assesse, the department has to adduce proper evidence and discharge the burden of proof. It was also held that since the goods were covered by a specific heading, in that case Heading No. 25.01....
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....cant is that the product i.e. laboratory reagents (other than diagnostic reagents is covered under Tariff Heading 3822 of the GST Tariff of Goods and is taxable at 12%. The applicant has also been heard at length in person and the comments of the Jurisdictional Officer were also sought. The comments of the Jurisdictional Officer have been perused and placed on file. The additional submissions dated 09.01.2020 made by the applicant have also been perused and placed on file. In the additional submission, the applicant has contended that Entry No. 80 of Schedule II of rate Notification reads "All diagnostic kits and the reagents". The expression "and" is conjunctive and as such the term reagents has to be treated separately. The applicant furt....