ORDER

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:

• A holding stabilizes the mature oocyte with gentle suction applied by the micro-injector.

• From the opposite side, a thin hollow glass micropipette is used to push a single sperm, having immobilized it by cutting its tail with the point of the micropipette.

• The sperm is then released into the oocyte.

• The pierced oocyte has an excluded polar body at about 12’o clock indicating its maturity. The polar body is positioned at the 12’o’clock or 6 ‘o’clock position to ensure that the inserted micropipette does not disrupt the spindle inside the egg.

• After the procedure, the oocyte will be placed into cell culture and checked on the following days for signs of fertilization.

Thus, it can be seen that a complex process of IVF is carried out by the Micromanipulator through the most recognized procedure called ICSI.

5. The appellant, in its application for Advance Ruling filed before the GAAR, has sought ruling on following question –

“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 ‘Micromanipulator System’?”

6. The GAAR, after considering various submissions of the appellant and examining the competing entries under Chapter Heading 9011and 9018 of the First Schedule to the Customs Tariff Act, 1975 (herein after referred to as the ‘CTA, 1975’), vide Advance Ruling No. GUJ/GAAR/R/22/2020 dated 2.7.2020, held as follows –

“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.”

7. Aggrieved by the aforesaid Advance Ruling, the appellant has filed the present appeal.

8.1 The appellant has submitted that it is a trader of ‘MM System’, wherein goods are imported and supplied to various customers in India. It has further been submitted that the import consignments of the appellant were subject to classification dispute by the Customs Authorities for which the appellant contested the matter up to Customs, Excise and Service Tax Appellate Tribunal (CESTAT). Meanwhile, the appellant filed aforesaid application for Advance Ruling on 04.07.2018 to avoid confusion under Goods and Services Tax Law.

8.2 The appellant has submitted that the Hon’ble CESTAT, vide Order Number A/88111-88116/2018 dated 17.12.2018, has upheld the classification of impugned goods under Tariff Item 9018 90 99. It has also been informed that the said Order of the Hon’ble CESTAT has been accepted by the Commissioner of Customs (Import), Air Cargo Complex, Sahar, as communicated vide letter F.No. S/3-Gen100/2018-19/TCI(I) dated 01.04.2019.

8.3 It has been submitted by the appellant that the GAAR did not peruse the ‘MM System’ on tests of functionality under HSN 9018, rather the Tariff Heading 9018 has been perused merely to find out whether ‘MM System’ is specifically mentioned therein or not. Therefore, the impugned order has been issued without appreciating the ‘MM System’ on tests of functionality. The appellant has relied upon the decisions in case of Sprint R.P.G. India [2000 (116) ELT 6 (SC)], Fedders Llyod Corporation [2001 (135) ELT 1331 (T)] and Prag Industries [1998 (103) ELT 62 (T)] in support of the contention that essential character / use of the product has also to be considered for classification. The appellant has also submitted that it has already been established in the case of Indian Carbon Limited [AIR 1972 SC 154] that a “goods in all its forms” are classifiable under the Chapter Heading under which the principal good is classifiable.

8.4 The appellant has submitted that the GAAR has classified the ‘MM System’ under HSN 9011 as ‘surgical microscopes’ on the basis of observation that procedure of IVF cannot be performed in absence of microscope because the entire procedure needs precision and perfection for which a microscope with extremely powerful objective lenses and high magnification is required. It has been submitted how entire machinery / equipment can be called as microscope by observing the procedure, viz. Microscope is an aid to perform the IVF procedure through micro-manipulator wherein the role of microscope is to magnify and nothing beyond that.

8.5 The appellant has referred to Chapter Note 3 of Chapter 9 read with Notes 3 and 4 to Section XVI and has submitted that the principal function is to carry out IVF by ICSI Procedure with the help of Micromanipulator, the said device, although equipped with the inverted microscope, shall not be classifiable under Chapter Heading 9011 as “Surgical Microscope” as the main function is not magnification but the ICSI Procedure, which is carried out by the Micromanipulator and the microscope merely magnifies the objects so as to carry out the procedure in a proper manner. Thus, by application of Section Note 3 to Section XVI, the impugned goods merit classification under Chapter Heading 9018 and not under Chapter Heading 9011.

8.6 It has been further submitted that the Micromanipulator and the inverted Microscope are individual components of the ‘MM System’ and are both meant to contribute to the principal function of the Micromanipulation System, which is to carry out the IVF by ICSI procedure; that it does not matter whether the same are separate or joined in any manner. The appellant has submitted that the crux is that the inverted microscope which is equipped along with micromanipulator contributes to the main function of IVF by way of magnification of the objects for the ICSI procedure, which is carried out by the Micromanipulator and thus the microscope merely magnifies the objects so as to carry out the main procedure in a proper manner. Thus, even by application of Section Note 4 to Section XVI, the impugned goods merit classification under Chapter Heading 9018 and not under Chapter Heading 9011.

8.7 The appellant has submitted that it laid emphasis on the content of the product literature made available to the GAAR for classification of the ‘MM System’. The appellant relied upon the judgement of the Hon’ble High Court of Bombay in the case of M/s. Kulkarni Black and Decker Ltd. Vs. Union of India [1992 (57) ELT 401 (BOM)] in support of the contention that the contents of the pamphlets are one of the relevant circumstance which can be taken into consideration while determining classification.

8.8 The appellant also submitted the copy of ‘Applicant’s interpretation of Law’ submitted before the GAAR, which contained

(i) product description (what is ‘MM System’, procedure to be performed by Micromanipulator, ICSI Procedure);

(ii) Classification of MM System (meaning of instrument, appliance and apparatus, Medical Science, MM System is a medical device;

(iii) why classification shall be made under Chapter Heading 9018 (Chapter Notes, Section Notes, Use of Equipment, Use of microscope is merely incidental);

(iv) why classification shall be made under Chapter Heading 9018 by applying General Rules of Interpretation / trade parlance theory;

(v) why classification shall not be made under Chapter Heading 9011 as explanatory note to the Chapter Heading 9011 clarifies that standalone microscope is covered under the said heading;

(vi) ICSI procedure, as available on Wikipedia;

(vii) Nikon Certificate regarding use of impugned item;

(vii) Certificates from various medical professionals / department regarding use;

(viii) copy of ICSI flow chart.

9. The appellant has informed that it has cancelled its Registration from 01.10.2019 in the State of Gujarat under section 29(1)(a) of the GST Law.

10. The appellant has also requested that the date of communication of Advance Ruling be considered as 28.09.2020 as the same was not communicated at address mentioned in Form GST ARA-01 as well as to the office of the authorized representative and it was collected on 28.09.2020.

FINDINGS :

11. We have carefully gone through and considered the submissions made by the appellant in the grounds of appeal and at the time of personal hearing as well as Advance Ruling given by the GAAR and other materials available on record.

12. The issues involved in this case are the determination of the correct classification of the product Micro Manipulator System (MM System) and determination of the Goods and Services Tax applicable thereon.

Classification of goods

13.1 The appellant has submitted that the ‘MM System’ being supplied by it is classifiable under Chapter Heading 9018 of the CTA, 1975 whereas the GAAR has held it classifiable under Chapter Heading 9011 (Tariff Item 9011 80 00) of the CTA, 1975.

13.2 Therefore, it would be useful to refer to the competing Chapter Headings 9011 and 9018 in the CTA, 1975, which are reproduced herein below :-

Chapter Heading	Description of goods	Unit
(1)	(2)	(3)
9011	Compound optical microscopes, including those for photomicrography, cinephotomicrography or microprojection
9018	Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and sight-testing instruments

14.1 The relevant portion of Explanatory Notes of HSN for Tariff Heading 9011 are reproduced below –

“Whereas magnifiers of heading 90.13 have only a single stage of magnification of relatively low power, the compound optical microscope of this heading has a second stage of magnification for the observation of an already magnified image of the object.

A compound optical microscope normally comprises:

(I) An optical system consisting essentially of an objective designed to produce a magnified image of the object, and an eyepiece which further magnifies the observed image. The optical system usually also incorporates provision for illuminating the object from below (by means of a mirror illuminated by an external or an integral light source), and a set of condenser lenses which direct the beam of light from the mirror on to the object.

(II) A specimen stage, one or two eyepiece-holder tubes (according to whether the microscope is the monocular or binocular type), and an objective holder (generally revolving).

The whole is fixed to a stand to which a limb or bracket and various adjusting accessories may be attached.

This heading covers microscopes as used by amateurs, teachers etc. and those for industrial use or for research laboratories, they remain in the heading whether or not they are presented with their optical elements (objectives, eyepieces, mirrors etc.). The heading includes universal microscopes; polarising microscopes; metallurgical microscopes; stereoscopic microscopes; phase contrast and interference microscopes; reflecting microscopes; microscopes with drawing attachments; special  microscopes for examining clock or watch jewels; microscopes with heating or freezing stages.

Special purpose microscopes include:

(1) Trichinoscopes, ……….

(2) Microscopes for measuring or checking operations in certain manufacturing processes; ……….

(3) Laboratory measuring microscopes ………

(4) Surgical microscopes for use by surgeons when operating on a very small portion of the body. Their light sources result in independent light paths which provide a three-dimensional image.

This heading also covers:

(A) Microscopes for photomicrography and microscopes for cinephotomicrography. In addition to the visual observation of the specimen, these also permit the photographic recording of magnified images. They may be composed either of a microscope permanently incorporating a photographic or cinematographic camera (usually specially designed for this purpose), or of a conventional microscope to which a conventional photographic or cinematographic camera can be temporarily fixed by means of a simple attachment.

Separately presented photographic or cinematographic cameras for photomicrography or cinephotomicrography are excluded (heading 90.06 or 90.07, respectively)

(B) Microscopes for microprojection with compound magnification. These are used for the horizontal or vertical projection of images magnified by a microscope incorporated in the apparatus. They are equipped with special microscopes enabling rapid change of focus, and are used in education, scientific and medical demonstration rooms, technical laboratories etc.”

………

This heading also excludes :

(a) ……..

(b) Ophthalmic binocular-type microscope (heading 90.18)

(c) to (e) ……

14.2 Thus, it is seen that Chapter Heading 9011 covers ‘compound optical microscope’ as used by amateurs, teachers etc. and those for industrial use or for research laboratories, whether or not they are presented with their optical elements (objectives, eyepieces, mirrors etc.). This Chapter Heading also include ‘Surgical microscopes’ for use by surgeons when operating on a very small portion of the body, in which their light sources result in independent light paths which provide a three-dimensional image. It has specifically been mentioned that this Chapter Heading excludes ‘Ophthalmic binocular- type microscope (heading 90.18).

15.1 The relevant portion of Explanatory Notes of HSN for Tariff Heading 9018 are reproduced below –

“This heading covers a very wide range of instruments and appliances which in the vast majority of cases are used only in professional practice (e.g. by doctors, surgeons, dentists, veterinary surgeons, midwives) either to make a diagnosis, to prevent or treat an illness or to operate etc. Instruments and appliances for anatomical and autoptic work, dissection etc. are also included as are under certain conditions, instruments and appliances for dental laboratories (See Part (II) below). The instruments of the heading may be made of any material (including precious metals).

The heading does not cover:

(a) to (ij)……

(k) Microscopes etc. of heading 90.11 or 90.12.

(l) to (r) ……

On the other hand, this heading includes specialised measuring instruments used exclusively in professional practice, such as cephalometers, dividers for measuring cerebral lesions, obstetrical pelvimeters etc.

It should also be noted that a number of the instruments used in medicine or surgery (human or veterinary) are, in effect, tools (e.g. hammers, mallets, saws, chisels, gouges, forceps, pliers, spatula, etc.), or articles of cutlery (scissors, knives, shears etc.). Such articles are classified in this heading only when they are clearly identifiable as being for medical or surgical use by reason of their special shape, the ease with which they are dismantled for sterilisation, their better quality manufacture, the nature of the constituent metals or by their get-up (frequently packed in cases or boxes containing a set of instruments for a particular treatment: childbirth, autopsies, gynaecology, eye or ear surgery, veterinary cases for parturition etc.)

The instruments and appliances classified here may be equipped with optical devices; they may also make use of electricity, either as motive power or for transmission, or as a preventive, curative or diagnostic agent.

This heading also covers instruments and appliances operated by laser or other light or photon beam processes and ultrasonic instruments and appliances.

INSTRUMENTS AND APPLIANCES FOR HUMAN MEDICINE AND SURGERY:

This group includes:

(A) Instruments which may be used under the same names for several purposes(for example):

(1) to (17) ……

(B) Special Diagnostic instruments and apparatus:

These include:

(1) to (6)

(C) Opthalmic instruments: These fall into various categories:

(1) ……….

(2) Diagnostic instruments such as opthalmoscopes; binocular loupes with head bands and binocular type microscopes, consisting of a microscope, an electric lamp with a slit, and a head rest, the whole being mounted on an adjustable support, for the examination of the eyes; tonometers (for testing the intra-ocular tension) eye specula.

(3) ………

This heading also covers electrically heated compresses for the eyes, and electromagnets designed for removing metallic particles from the eyes.

(D) to (N) ………

(O) Endoscopes:gastroscopes, thoracocopes, peritoneoscopes, bronchoscopic telescopes, cystoscopes, urethoscopes, resectoscopes, cardioscopes, colonoscopes, nephroscopes, laryngoscopes,etc. Many of these have an operating channel large enough to perform surgery via remote controlled instruments. However, endoscopes for non-medical purposes (fibroscopes) are excluded (heading 90.13).

(P) Apparatus incorporating an automatic data processing machine and designed solely for calculating the dose and distribution of therapeutic radiation.

(Q) ……

(R) Lamps which are specially designed for diagnostic, probing, irradiation etc. purposes. Torches, such as those in the shape of a pen are excluded (heading 85.13) as are other lamps which are not clearly identifiable as being for medical or surgical use (heading 94.05).

……

……

……”

15.2 Thus, it is seen that Chapter Heading 9018 covers a very wide range of instruments and appliances, which in the vast majority of cases are used only in professional practice (e.g. by doctors, surgeons, dentists, veterinary surgeons, midwives) either to make a diagnosis, to prevent or treat an illness or to operate etc. Instruments and appliances for anatomical and autoptic work, dissection etc. and for dental laboratories (under certain conditions) are also included in this Chapter Heading. It has specifically been mentioned that this Chapter Heading does not cover ‘Microscopes etc. of heading 9011 or 9012’. However, it has also been mentioned in the Explanatory Notes for Chapter Heading 9018 that the instruments and appliances classified here may be equipped with optical devices; they may also make use of electricity, either as motive power or for transmission, or as a preventive, curative or diagnostic agent.

15.3 The Explanatory Notes for Chapter Heading 9018 also provides that the group ‘Instruments and appliances for human medicine and surgery’ includes ‘Ophthalmic instruments’, which falls into various categories, including “Diagnostic instruments such as opthalmoscopes; binocular loupes with head bands and binocular type microscopes, consisting of a microscope, an electric lamp with a slit, and a head rest, the whole being mounted on an adjustable support, for the examination of the eyes; tonometers (for testing the intra-ocular tension) eye specula”. Similarly, it has been provided that Endoscopes of various types are also included in Chapter Heading 9018, many of which have an operating channel large enough to perform surgery via remote controlled instruments, though endoscopes for non-medical purposes (fibroscopes) are excluded (heading 90.13). Chapter Heading 9018 also includes “Lamps” which are specially designed for diagnostic, probing, irradiation etc. purposes.

16.1 In the light of the Chapter Heading 9011 and 9018 of the CTA, 1975 and Explanatory Notes thereto, we may now examine the issue of classification of ‘MM System’.

16.2 As per the facts narrated by the appellant, the ‘MM System’ is also known as ‘IVF technology’ in the medical world; that the ‘MM System’ 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. The appellant has submitted that ‘MM System’ is used to perform ICSI procedure to overcome human infertility problems which is an IVF procedure and a type of 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.

16.3 The appellant 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 microinjection 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.

16.4 It appears from the above mentioned facts narrated by the appellant that ‘MM System’ is a device used in ICSI procedure, IVF procedure or ART. It also appears that ‘MM System’ consists of above mentioned five main components / elements which include ‘inverted microscope’, ‘micro manipulator’ and ‘micro injector’.

17.1 The appellant has submitted copies of letters issued by following organisations / persons wherein ‘functions of ICSI Micro Manipulator System’ have been narrated –

(i) Shri Shuichi Iwabuch, Manager, Sales Section-Marketing Department, Microscope solutions Business Unit of Nikon Corporation

(ii) Shri RYO Sekiya, Director – SSBD of Olympus Medical Systems India Private Limited

(iii) Col. Sandeep Karunakaran of INHS Asvini, Mumbai

(iv) Dr. Duru Shah, President of Indian Society for Assisted Reproduction

(v) Dr. Sheila Balakrishnan, Fertility Centre, SAT Hospital, Govt. Medical College, Thiruvananthapuram.

(vi) Department of Obstetrics & Gynaecology, Government Medical College, Kottayam.

17.2 It has been observed that the letters of aforesaid organisations / persons only describes the functions of ‘ICSI Micro Manipulator System’.

17.3 Similarly, the inclusion of ‘Assisted Reproductive Techniques’ in the syllabus of University of Delhi and Krishna Institute of Medical Sciences, Deemed University only suggest that the ‘Assisted Reproductive Technique’ is the part of Medical Science. The syllabus of these institutes does not mention anything about ‘MM System’.

18.1 The appellant has submitted a write-up on ICSI Procedure, wherein under the heading ‘laboratory equipment’, it has been mentioned that there are some requirements that an IVF lab need to correctly perform ICSI technique; that there are basically 5 main elements: laminar flow cabinet, inverted microscope, micromanipulators, microinjectors and anti-vibration table. As per the submissions of the appellant, ‘MM System’ has been designed to carry out a specific function of ‘IVF’ with the help of various equipment like microscope, micromanipulator, micropipette and micro injector wherein microscope is a tool and multiple micromanipulators are devices. It has also been submitted that the microscope, that too ‘inverted microscope’ is just one of the components of the apparatus as the entire process has to be done on minute particles, however, the microscope is used merely as a visual aid and does not interfere with the main procedure, which is ICSI.

18.2 Thus, as submitted by the appellant, ‘MM System’ being supplied by it comprises of various components, one of which is microscope. Further, such ‘MM System’ is being used only by doctors in ICSI procedure, IVF procedure or ART and it does not have any use other than in medical science. The main function of the ‘MM System’ is in ‘ICSI’ procedure which is mainly carried out with the help of ‘micromanipulator’, however as the entire procedure has to be carried out on minute particles, it is done under inverted microscope. In view of these fact situations, we are inclined to agree with the appellant that ‘MM System’ is appropriately classifiable under Chapter Heading 9018 of the CTA, 1975. The ‘MM System’ cannot be excluded from Chapter Heading 9018 merely on the ground that one of its components is ‘microscope’.

18.3 In case the ‘MM System’ is supplied in unassembled or disassembled form, still the classification will be the same in view of Rule 2(a) of General Rules for the interpretation of the CTA, 1975, which provides that ‘any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article; that it shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.

18.4 We also note that the Hon’ble CESTAT vide Order No. A/88111-88116/2018 dated 08.08.2018 / 14.12.2018 has, in the appellant’s own case for the same product, though in Customs’ matter, upheld the classification of the ‘MM System’ under Chapter Heading 9018 of the CTA, 1975. The appellant has submitted that the said decision of the Hon’ble CESTAT has been accepted by the Customs Department (Committee of Commissioner) on 01.03.2019.

18.5 In view thereof, we hold that ‘MM System’ supplied by the appellant is appropriately classifiable under Chapter Heading 9018 of the CTA, 1975. It is needless to mention here that our view is applicable only where complete ‘MM System’ is supplied in assembled or disassembled form and not where only ‘microscope’ is supplied.

Rate of Goods and Services Tax

19. As per Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 1/2017-State Tax (Rate) dated 30.06.2017, ‘Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments’ falling under Chapter Heading 9018 attracts Goods and Services Tax of 12% (CGST 6% + SGST 6%) vide Sr. No. 218 of Schedule II of the said Notifications. Therefore, ‘MM System’ supplied by the appellant are chargeable to Goods and Services Tax of 12% (CGST 6% + SGST 6%)

20. In view of the foregoing, we modify the Advance Ruling No. GUJ/GAAR/R/22/2020 dated 02.07.2020 of the Gujarat Authority for Advance Ruling in the case of M/s. Shivani Scientific Industries Pvt. Ltd. and hold that –

(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.