AAR Karnataka Order in the case of M/s HACH DHR India Pvt. Ltd.

Case Covered:

M/s HACH DHR India Pvt. Ltd.

Facts of the case:

The applicant is a private limited company, situated in Bengaluru, incorporated under Companies Act, 1956 and is a subsidiary of Danaher Corporation, a global conglomerate having operations in China, Europe, and India. The business operations of the applicant include (i) import of goods from group companies located outside India & sale of such imported goods within India and (ii) Maintenance services(involving goods and /or services) by entering into annual maintenance contract & comprehensive maintenance contract.

The applicant is engaged in selling water quality testing and analytical instruments spread across India and holds GST registrations at Karnataka & Delhi. In view of the above, the applicant seeks an advance ruling with regard to the classification of Laboratory Reagents, in respect of the following question:

Whether the applicants are correct in contending that the ”Reagents” used by the applicant for laboratory testing of water samples should be classified under Sl. No.80 of the IGST schedule-II at 12% under IGST Notification No. 1/2017-Integrated Tax(Rate) dated 28.06.2017?

The applicant contends that their products ”Lab Reagents” are used in the lab to test the quality of water; highlights specifications, methods, and scope of application of two of their ”Reagents” i.e., Chlorine Reagent & Iron Reagent; claims that the products merit classification under tariff heading 3822; get covered under Sl. No.80 of schedule-II of the Notification No.01/2017-Integrated Tax(Rate) dated 28.06.2017 and accordingly taxable @12% IGST. Further, they also contend that their products are not covered under Sl. No.453 of Schedule-III as residual entry, which attracts 18% IGST.

The applicant had been given an opportunity of hearing on 02.01.2020 but sought an adjournment, vide their email dated 26.12.2019. However, the applicant vide their letter dated 02.01.2020, requested this authority to permit them to withdraw their application for advance ruling, quoting the reason that the ruling of this authority bearing number ADGR/71/2019 dated 23.09.2019, in the case of M/s Chromachemie Laboratory Pvt. Ltd., which has facts similar to that of the applicant.

In view of the above, we pass the following

Ruling:

The application filed by the Applicant for advance ruling is disposed of as withdrawn.

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