TaxTMI 
TaxTMI 
2025 (6) TMI 911
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....ertain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 1. FACTS AND CONTENTION - AS PER THE APPLICANT: 1.1 The Applicant is a public limited company established in the year 1989 having its registered office at 306 A, Bhabha Building, N. M. Joshi Marg, Mumbai - 400 011 and factory at J25 & J26, M.I.D.C., Awdhan, Dhule-424006. The Applicant is engaged in the manufacture and sale of electronic weighing scales and systems under the brand name 'Phoenix'. The Applicant is registered under the Central Goods and Services Tax Act, 2017 and Maharashtra State Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act" and "MGST Act" respectively) having GSTIN 27AABCN1116EIZI. 1.2 Among the product portfolio of the Applicant are two products, namely "Infantometer PIM-101" and "Stadiometer PSM-101", which are growth monitoring devices which are manufactured using qualitative components and are integrate....
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....s used exclusively for clinical and medical experimental purposes and are covered under the heading 9018 90 19 with rate of tax being 12 per cent. b. In the case of M/s. Precision Electronic Instruments Co., vide Advance Ruling No. HR/HAAR/2021-22/17, dated 30th June 2021 the Haryana AAR has agreed with the advance ruling pronounced in Medi Waves Inc. (supra) to hold that Infantometer and Stadiometer are medical instruments used exclusively for clinical and medical experimental purposes and are not scale rods or divided scales of general nature. Hence, both the products are covered under Tariff Item 9018 90 19 other category) with rate of tax being 12%. 1.5 This has created a doubt as to the correctness of Applicant's classification. Additionally, the Applicant has observed that its competitors are classifying the same goods under HSN code 9018 and charging GST @ 12%. Therefore, to sustain itself in this competitive market, the Applicant has filed the present application for advance ruling before the Hon'ble Authority for Advance Rulings, Maharashtra. 2. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW 2.1 Applicant is of the view that its present classifica....
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....ions through open tendering process. Some of the entities issuing purchase orders to the Applicant are listed below: i. Directorate of Women Development & Child Welfare, Telangana ii. Directorate of Women and Child Development, Kerala iii. Women and Child Development Department, Chhattisgarh iv. Odisha State Medical Corporation Limited v. Integrated Child Development Services Scheme (ICDS) operating under the Women and Child Development Department, Maharashtra 2.6 All the entities mentioned above are exclusively working in the medical field wherein these instruments are used exclusively for medical purposes. Further, though the Applicant is the OEM and is supplying the products directly to various State Governments, under normal circumstances, the products are primarily available in surgical shops and not in hardware stores. 2.7 Reason 2: Specific entry of classification shall prevail over a general entry Tariff Heading 9017 covers instruments for measuring length, for use in the hand, not specified or included elsewhere in the chapter. However, Infantometer and Stadiometer are specifically covered by Tariff Heading 9018. As suc....
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....fic description shall be preferred over to headings providing a more general description. However, when two or more headings each refer to part only of the materials or sub-stances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. b. Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (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. c. When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration." (Emphasis added) 2.10.3 Heading 9017 refers to "Drawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc....
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....how the goods are identified by the consumers as at present is a relevant criterion for their classification, as held by the Hon'ble Supreme Court in the case of CCE v. Fusebase Eltoto Ltd. [1993 (67) E.L.T. 30 (SC)]. 2.10.9 Infantometer and stadiometer are understood to be diagnostic medical equipment in common parlance. In this regard, a useful reference may be made to the judgement of the Supreme Court in M/s Indo-International Industries vs. Commissioner of Sales Tax, UP [1981 (8) E.L.T. 325 (S.C.)] [25.03.1981]. Relevant portions of para 4 & 5 of the judgement have been reproduced hereunder: "4. It is well settled that in interpreting Items in statutes like the Excise Tax Acts or Sales Tax Acts, whose primary object is to raise revenue and for which purpose they classify diverse products, articles and substances resort should be had not to the scientific and technical meaning of the terms or expressions used but to their popular meaning, that is to say, the meaning attached to them by those dealing in them. If any term or expression has been defined in the enactment, then it must be understood in the sense in which it is defined but in the absence of any definition....
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....intention to the contrary is found within the Customs Tariff Act itself, the HSN and the Explanatory Notes thereto, being the official interpretation of the Harmonized System at the international level, would be of binding guidance in understanding and giving effect to the headings in the First Schedule. 2.10.12 It is in the context of the Hon'ble Supreme Court's ruling in M/s. Madhan Agro Industries (supra) that the Applicant has placed reliance on the Sixth Edition (2017) of Explanatory Notes to the Harmonised Commodity Description and Coding System issued by the World Customs Organisation. The said Explanatory Notes clarify that even tools or articles of cutlery can be classified under Heading 9018 as medical instruments / appliances provided that they are, inter-alia, clearly identifiable for medical or surgical use by virtue of their better quality of manufacture. 2.10.13 Infantometer and stadiometer are high precision scales manufactured using high quality components which ensure a longer working life and accurate results. In support of the Applicant's claim, we are pleased to enclose herewith type-test reports as per specification of IS:1269(Part-1)/1997 issued by the ....
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....C.A. Appeared and requested for admission of the application. Jurisdictional Officer Mr. Alok Bihari, Superintedent, Range-Dhule-I, Dhule Division, Nasik also appeared. The application was admitted and called for final hearing on 20.03.2025. Mr. Aditya Surte C.A. Authorized Representative, appeared made oral and written submissions. Jurisdictional Officer Mr. Mr. Vijay Hedawakar, Superintendent of CGST appeared. We heard both the sides. 5. OBSERVATIONS AND FINDINGS: 5.1. We have gone through the application and the additional submissions made by the applicant and the submissions made by the jurisdictional officer vide letter dated 25.07.2022. We find that the applicant is a manufacturer of weighing scales and is also manufacturing measuring equipment such as Infantometer and Stadiometer. As "Infantometer PIM 101" and "Stadiometer PSM 101" As per the applicant, these are precise measuring equipment, which are used to measure the growth of human beings. Infantometer is a diagnostic medical equipment used for measuring the recumbent length of an infant with greater accuracy by holding the infant in position securely. It is a precision scale useful for clinical and hospital pu....
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....pretation of this notification. 5.3 We will therefore, be required to refer to the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) in order to find out the correct classification of the said products. In this regard, we find that Chapter 90 of the Customs Tariff Act, 1975 is relevant which covers optical, photographic, cinematographic, measuring, checking precision medical or surgical instruments and apparatus: parts and accessories thereof. We find that following tariff headings are relevant in the present case: - a) 9017: Instruments for measuring length, for use in the hand (for example measuring rods and tapes, micro meters, calipers), not specified or included elsewhere in the chapter. b) 9018: - Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electro-medical apparatus and sight testing instruments. Under this heading, the particular relevant tariff item referred to by the applicant is 90189019 i.e. Other Diagnostic instruments and apparatus. The applicant has stated that this is a specific entry covering their product. 5.3. We find that the main thrust of the app....
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....t measures the length of curves, dashes, etc. by running a toothed wheel along them. Dictionary.com defines stadiometer as an instrument that measures the length of cures, dashes, etc., by running a toothed wheel along them. Stadiometers are used in various fields such as health, medical or doctor, public health sector, police and military tests, university entrance tests etc. Thus, basically stadiometer is a measuring instrument, which has medical uses but that alone would not render these products as classifiable under Chapter 9018 as diagnostic instruments. 5.6. On verification of the pamphlet of the product, the pamphlet of Stadiometer mentions that it is designed to measure height of adults and children. We find that it is nowhere mentioned in the said pamphlet that the said goods are for medical purposes or are medical equipment/ diagnostic instrument or goods to be used by medical professionals in health care setting. In fact, we find that the said product is designed for measuring the height of children and adults. It would not be out of place to point out that the height of adults and children are not measured only for medical purposes. There are various reasons for mea....
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....ndia, Department of Consumer affairs to emphasis that the goods in the instant case are of good quality and therefore they qualify as a medical diagnostic instrument. We find that the said Test Report dated 6.10.2021 only mentions that the performance of stadiometer is satisfactory and conform to the specifications IS:1269 (Part-1)/1997. However, this does not come to the aid of the applicant for classifying the product as a diagnostic instrument as it is not uncommon that good quality weighing and measuring instruments are made and sold in the market, meeting various specifications. In fact, the said specification is the standard for-material measure of length : Part 1: Woven and glass fibre tape measures and would not render the goods to be classified under 9018 as a diagnostic instrument or apparatus. Such a certificate does not assist this office in determining the classification of the said product as a diagnostic instrument used in medical science. 5.8 We find that the applicant has stressed upon the general rules of interpretation of tariff to emphasize that a specific classification is to be preferred over a general one and that the stadiometers are instruments for diagn....