In re Imperial Life Sciences Pvt. Ltd (GST AAAR Haryana)
In view of the discussions and findings and the CBIC’s Circular No. 163/19/2021-GST dated 6th October 2021, issued under F.No. 190354/ 206/2021-TRU, AAAR hold that concessional GST rate of 12% is applicable on all goods falling under heading 3822, vide Entry at S.No. 80 of Schedule II of notification No.1/2017-Integrated Tax (Rate) dated 28.6.2017, including to Laboratory Reagents being imported and supplied by the Appellant.
Read AAR Order : GST on Laboratory Reagents
FULL TEXT OF THE ORDER OF AUTHORITY FOR APPELLATE ADVANCE RULING, HARYANA
The present appeal has been filed under Section 100 (1) of Central Goods and Service Tax Act, 2017 /Haryana Goods and Service Tax Act, 2017 (hereinafter referred to as CGST Act / HGST Act, respectively) by M/s Imperial Life Sciences Pvt. Ltd against the Advance Ruling No. HAR/HAAR/R/2019-20/15 issued vide Memo No. 1055/AAR dated 28.08.2020.
A copy of order of the Advance Ruling Authority issued on dated 28.08.2020 was received by the appellant on 31.08.2020 and the appeal has been filed on 30.09.2020 which is within time in terms of Section 100(2) of the CGST Act 2017.
I. BRIEF FACTS OF THE CASE:
M/s Imperial Life Science Pvt. Ltd. is engaged in the import and supply of laboratory reagents (tariff heading 3822) to the Government Research Institutions. Till the end of June, 2019, IGST was being levied by Customs Appraising Department on laboratory reagents @12% in terms of S.No.80 of Schedule II to the CGST Notification 01/2007-CT dated 28.06.2017. However later Customs observed that laboratory reagents of Customs tariff heading 3822 cannot be so taxed and IGST would be charged under the residuary S.No.453 viz. ‘Goods which are not specified in Schedule I, II, IV, V or VI’, of Schedule III of the Notification.
II. QUESTION FOR ADVANCE RULING:
The question raised for Advance Ruling by the Appellant was,-
“Whether “LABORATORY REAGENT” is classifiable under Tariff Heading 38220090 at S. No. 80 of the 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 CGST Notification No. 1/2017-Central Tax (R) dated 28th June 2017 (As amended and Notification No. 35/2017-State Tax 2 dated 30.06.2017 (as amended)?”
Advance Ruling:
The AAR ruled, –
“The Laboratory Reagents are the goods which are not specified in Schedule I, II, IV, V or VI of the Notification 01/2017-Central Tax (Rate) and Integrated Tax (Rate) dated 28.06.2017 and as such it is recovered under Serial No.453 453 of Schedule III of Notification 01/2017-Central Tax (Rate) and Integrated Tax (Rate) dated 28.06.2017.”
III. GROUNDS OF APPEAL:
The Appellant have submitted the following as the Grounds of Appeal:-
a. That, the Ruling granted is incorrect both on law as well as facts;
b. That, Chapter 38 of the Customs Tariff Act, 1975 (hereinafter referred to as ‘CTA’) provides for classification of “Miscellaneous chemical products” and Chapter Heading 3822 covers “Diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, other than those of heading 3002 or 3006; certified reference materials”.
c. Sub-heading 382200 covers “Diagnostic or laboratory reagents” as under:-
