In re Shivani Scientific Industries Pvt. Ltd. (GST AAAR Gujarat)
(i) ‘Micro Manipulator System’ supplied by M/s. Shivani Scientific Industries Pvt. Ltd. is classifiable under Chapter Heading 9018 of the First Schedule to the Customs Tariff Act, 1975 as ‘Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and sight-testing instruments’.
(ii) ‘Micro Manipulator System’ supplied by M/s. Shivani Scientific Industries Pvt. Ltd. is chargeable to 12% (CGST 6% + SGST 6%) Goods and Services Tax as per Sl. No. 218 of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended and Notification No. 1/2017-State Tax (Rate) dated 30.06.2017, as amended.
FULL TEXT OF THE ORDER OF AUTHORITY OF APPELLATE ADVANCE RULING, GUJARAT
The appellant M/s. Shivani Scientific Industries Pvt. Ltd. has been engaged in the supply of medical equipment viz. ‘Micro Manipulator System’ (hereinafter referred to as ‘MM System’) which is “Intra Cytoplasmic Sperm Injection (herein after referred to as ‘ICSI’) with ejaculated, epidymal or testicular spermatozoa used in Assisted Reproductive Technology (herein after referred to as ‘ART’) Procedures”. The appellant used to receive the orders for supply of ‘MM System’ from various customers and has been selling the same with reference to the purchase orders.
2. The appellant has filed an application for Advance Ruling before the Gujarat Authority for Advance Ruling (herein after referred to as the ‘GAAR’), wherein it has been stated that the ‘MM System’ is also known as ‘IVF technology’ in the medical world and in common / trade parlance, it is also called “Micro manipulator’; that globally micro-manipulator falls under HSN 9018 but in India there is confusion as to whether it falls under HSN 9018 or 9011; that they are of the view that the product in question should be classified under Chapter Heading 9018 and not under Chapter Heading 9011. The appellant has submitted that a micromanipulator is a device which is used to physically interact with a sample under a microscope, where a level of precision of movement is necessary which cannot be achieved by the unaided human hand and may typically consist of an input joystick (a mechanism for reducing the range of movement) and an output section with the means of holding a micro-tool to hold, inject, cut or otherwise manipulate the object as required; that mechanism for reducing the movement usually requires the movement to be free of backlash which is achieved by the use of kinematic constraints to allow each part of the mechanism to move only in one or more chosen degrees of freedom, which achieves a high precision and repeatability of movement, usually at the expense of some absolute accuracy.
3. The appellant has further stated that MM System is used to perform ICSI procedure to overcome human infertility problems. The appellant has also submitted a write –up from Wikipedia.
4. The appellant has submitted the procedure of in-vitro fertilization (herein after referred to as ‘IVF’) in brief as under:
