TaxTMI 
TaxTMI 
2024 (2) TMI 645
X X X X Extracts X X X X
X X X X Extracts X X X X
....ices companies, Pharmaceutical Industries and Hospitals. 3. The applicant has sought advance ruling in respect of the following questions:- 1. What is the correct HSN code to be used for Sterilization Reels and Pouches manufactured by our company? 2. What is the correct rate of GST applicable to Sterilization Reels and Pouches manufactured by us under the said HSN code? 4. The question is about applicable GST rate under the provisions of CGST Act and liability to pay GST, hence is admissible under Section 97(2)(a) of the CGST Act 2017. Further, as per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. 5. Statement of relevant facts having a bearing on the question(s) raised- Applicant is a ISO 13485, ISO 11607 and CE certified company and manufactured micro barrier sterilization reels and pouches used by medical devices companies, Pharmaceutical Industries and Hospitals. All medical devices companies which come in contact with human wound, flesh and blood needs to be sterilization to avoid infection. Ster....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l Products should be considered under GST for this business process. 7. The application for advance ruling was forwarded to the Central Jurisdictional GST Officer vide letter dated 12.09.2023 and reminder letter dated 04.10.2023 to offer their comments/views/verification report on the matter. Assistant Commissioner, CGST- Division-VJ, Noida has submitted his comments vide his letter dated 12.10.2023 wherein it has been submitted that- 7.1 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....8 06 2017 as amended is CGST-9%; SGST-9%. 8. The applicant was granted personal hearings on 27.10.2023 and 21.11.2023 which was attended by Mr. Ashu Daimiya, CA, Authorized Representatives on 21.11.2023 during which they reiterated the submissions made in the application of advance ruling. DISCUSSION AND FINDING 9. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST 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 provision under the UPGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 10. We have gone through the Form GST ARA-01 filed by the applicant and observed that the applicant has ticked following issues on which advance ruling required- (1) Classification of goods and/or services or both. At the outset, we Find that the issue raised in the application is squarely covered under Section 97(2) of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes." Furthermore, Note 1 and Note 2 of Section VI of Chapter 30 of Customs Tariff Act, 1975 is relevant here which reads as: 1. (A) Goods (other than radioactive ores) answering to a description in heading 2844 or 2845 are to be classified in those headings and in no other heading of this Schedule. (B) Subject to paragraph (A) above, goods answering to a description in heading 2843, 2846 or 2852 are to be classified in those headings and in no other heading of this Section. 2. Subject to Note 1 above, goods classifiable in heading 3004, 3005, 3006, 3212, 3303, 3304, 3305, 3306, 3307, 3506, 3707 or 3808 by reason of being put up in measured doses or for retail sale are to be classified in those headings and in no other heading of this Schedule Therefore, in terms of the referred Note 2 of Section VI of Schedule appended to Customs Tariff Act, 1975, primary condition for the product to classify under heading 30.05 is that it should be put in measured doses or for retail sale. The present product is not at all for retail sale as the applicant h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5.1 Here it may be pointed out that the party is into manufacturing of Sterilization Reels and Pouches used by medical devices companies. The packing material should be such that sterilizations should be retained because there is a time gap between sterilization of products and its use. The applicant has submitted that the inputs used to manufacture the products used for sterilization of Medical Equipments are Medical Grade Paper, Tyvek Paper, CPP Blue, CPP Transparent. CPP transparent films are basically transparent cast polypropylene films and widely known for its versatility, appearance and excellent performance. It offers flexible packaging. Thus the constituent of the product under consideration is both plastic and medical-grade paper. 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 as....