Case Law Details
In re Imperial Life Sciences Pvt. Ltd. (GST AAR Haryana)
Whether ‘LABORATORY REAGENT’ is classifiable under Tariff Heading 38220090 at S.No.80 of Schedule II oras “Goods which are not specified in Schedule I, II, IV, V or VI” at Sl. 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)?
The submission of the applicant 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 further adds that there is no specific exclusion or qualification for the term reagents used in Entry No. 80 of Schedule II of rate Notification which leads to conclusion that the Entry covers the reagents which may be either used in the laboratory or diagnosis.
4.2 In essence, the issue before this Authority is whether the term reagents used at Serial No. 80 Tariff Heading 3822 of Notification No. 1/2017-Integrated Tax (Rate), New Delhi dated 28.06.2017 covering description “All diagnostic kits and reagents”, covers only diagnostic reagents or both diagnostic as well as laboratory reagents. It is important to differentiate between a diagnostic and a laboratory reagent. A diagnostic reagent is a reagent used for evaluation of physical, bio-physical or bio-chemical process in human being and animals whereas prepared laboratory reagents includes other reagents also, besides those used for the purpose of diagnosis.
4.3 After perusing the documents placed on record, this Authority is of the unanimous view that the description “All diagnostic kits and reagents” mean all diagnostic kits and all diagnostic reagents. It does not include the laboratory reagents as argued by the applicant. Further, the configuration of diagnostic kits reveal that some reagents are also essential parts of the diagnostic kits. If these diagnostic reagents are removed/ separated from the kit, the kit will lose the utility of diagnosis. For example Ouchterlony Double Diffusion kit has Agarose as reagent. The term “and” used in the Entry No. 80 of Schedule II of rate Notification all diagnostic kits and reagents in this Entry essentially means diagnostic reagents. The Tariff Heading 3822 00 11 and 3822 00 12, 3822 00 19 and 3822 00 90 also applies to goods for medical diagnostic. So, it is clear from the above discussion that the term diagnostic kits and reagents does not include the laboratory reagents imported and supplied by the applicant.
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