Case Law Details
In re Strides Emerging Markets Ltd (GST AAAR Karnataka)
The active ingredient in ‘Nicotine Polacrilex Lozenge’ is Nicotine which is a natural alkaloid. Nicotine is bound to an ion-exchange resin (polymethacrilic acid) and administered in the form of tablets, chewing gum, lozenge or patches The chemical formulation of the nicotine bound to the resin polacrilexis such that it provides the user of the product blood nicotine levels via buccal absorption that will approximate those produced by the inhalation of tobacco smoke. We find that the Nicotine Polacrilex Lozenge is a chemical preparation and hence is more aptly classifiable under Chapter Heading 38.24 of the Customs Tariff Act, 1975.
In the GST rate Notification No 01/2017-Central Tax (Rate) dated 28.06.2017, the “Prepared hinders for foundry’ moulds or cores; Chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included” falling under Chapter Heading 38.24 are covered under entry SI.No 97 of Schedule III with a GST rate of 18% (CGST 9% plus SGST 9%).
FULL TEXT OF THE APPELLATE AUTHORITY FOR ADVANCE RULING ,KARNATAKA
At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017 and KGST Act, 2017) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding similar provisions under the KGST Act.
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