In re Shivani Scientific Industries (GST AAR Gujarat)
The product ‘Micromanipulator system’ manufactured and supplied by M/s. Shivani Scientific Industries pvt.ltd. is classifiable under Tariff item no. 9011 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). The said product is covered under Entry No. 184 of Schedule-IV of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 (upto 14.11.2017) and under Entry No.411F of Schedule-III of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 (as amended) (w.e.f. 15.11.2017) issued under the CGST Act, 2017. Applicability of the rate of GST on the said product would be 28% (14% SGST + 14% CGST) upto 14.11.2017 and 18% GST (9% SGST + 9% CGST) with effect from 15.11.2017.
Read AAAR Ruling : ‘Micro Manipulator System’ classifiable under Chapter Heading 9018
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
BRIEF FACTS
The applicant vide their application for Advance Ruling has submitted that they are engaged in the supply of medical equipment viz. ‘Micro-manipulator System’ which is “Intracytoplasmic Sperm Injection (ICSI) with ejaculated, epidymal or testicular spermatozoa used in Assisted Reproductive Technology Procedures’ (hereinafter referred to as MM System). The applicant have stated that they have received the orders for supply of ‘MM System’ from various customers and is selling the same to them with reference to their purchase orders. The applicant has put up the following question for determination before AAR:
“Whether ‘Micro-manipulator system’ which is “Intracytoplasmic Sperm Injection (ICSI) with ejaculated, epidymal or testicular spermatozoa used in Assisted Reproductive Technology Procedures’ is classifiable under tariff heading 9018 or 9011, that is, what is the rate of tax on ‘Micro-ma.nipulator System’?”
2. The applicant has stated the Micro-manipulator system (‘MM system’ in short) 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 the 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 CH-9018 and not under CH-9011. The applicant submits 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 microtool 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 applicant has further stated that Micromanipulator is used to perform “Intra Cytoplasmic Sperm Injection (ICSI) procedure to overcome human infertility problems; that as per Wikipedia “Micromanipulators are usually used in conjunction with microscopes and depending on the application, one or more Micromanipulators may be fitted to a microscope stage or rigidly mounted to a bench next to a microscope; that a typical application of micromanipulation is human intra cytoplasmic sperm injection(ICSI); that the applicant has stated that ICSI procedure is an in-vitro fertilization (IVF) procedure and a type of assisted reproductive technology (ART); that ART procedures involve surgically removing eggs from a woman’s ovaries, combining them with sperm in the laboratory, and returning them to the woman’s body or donating them to another woman. The applicant has listed the 5 basic elements required by an IVF lab to correctly perform ICSI technique as under:
(a) Laminar flow cabinet: It has to contain a hot surface and an environment with 5% of CO2.
(b) Inverted microscope: It should have 20X and 40X lens, with Hoffman optics, and a 37degree centigrade surface to have an optimal maintenance of the biological material.
(c) Micromanipulators (micro manipulation device): They allow us to move in three dimensions, so that there will be one on the left to control the holding of the micropipette and another to the right for the injection micropipette. In addition, there is an electric manipulator for large movements and a hydraulic one for the finest (adjustment of the pipettes is done with the hydraulic and quick movements to place them with the electric).
(d) Micro injectors (micro manipulation device): There are hermetic syringes filled with mineral oil controlled by the micromanipulators and connected to the micro injection pipettes (to aspirate and inject the spermatozoa) by a flexible tube.
(e) Anti-vibration table: It has to contain hydrogen to assure the optimal work conditions.
4. The applicant has submitted the procedure of Invitro fertilization in brief as under:
