PROCEEDINGS OF THE

AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present: Sri T. Yugandhar Reddy, Addl. Commissioner (VAT)

Sri K. Raghavaiah, Jt. Commissioner (Audit))

Sri P.Satyanarayana Reddy, Jt. Commissioner (Enft.))

***

CCT's Ref.No: PMT/P&L/A.R.Com/ 142/ 2006. Dated: 20.11.2006.

Ref:- CCT's Ref.No: PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

O R D E R:

I. M/s. Antares Medical Services (TIN. 28349733745) Hyderabad have filed an application and sought clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-

II. Sri B. Chalapathi Rao, Managing Partner appeared for hearing and explained the case.

III. The applicant sought to know the rate of tax applicable on the following products.

1. Acid concentrate (concentrated acidic solution for bicarbonate Haemodialysis BP)

2. Acetate concentrate (Concentrated Haemodialysis solution with Acetate BP)

3. Dextrose monohydrate I.P.

4. Sodium Chloride I.P. & Sodium Bicarbonate I.P.

5. Sodium Bicarbonate I.P.

The applicant has stated that the above products are 'Drugs' used in the Dialysis process as fluids. The applicant has also produced copy of Drug Licence No.25/RR/AP/2006/F/G issued by the Drugs control Administration, Government of Andhra Pradesh, Hyderabad duly authorizing manufacture for sale in Form 25 & Licence to repack for sale in Form 25-B for the above mentioned products. The applicant has also produced sale invoices for the same which are sold to medical shops and Hospitals.

IV. The issue has been examined with reference to the provisions of the APVAT Act and Rules and HSN Codes notified by Government vide G.O.Ms.No:398, Revenue (CT.II) Department Dated 31-03-2005 and G.O.Ms.No:490, Revenue (CT.II) Department Dated 15-04-2005 as superceded in G.O.Ms.No.1596, Revenue(CT-II) Dept. dt.27.08.2005, in G.O.Ms.No.1615, Revenue (CT-II), Dept. dt.31.08.2005, G.O.Ms.No.502, Rev. (CT-II) Dept., dt.1-5-2006 w.e.f. 1-5-2006, G.O.Ms.No.656, Revenue (CT-II), Dept. dt.2.06.2006 G.O.Ms.No.795, Revenue (CT-II), Dept. dt.29.06.2006 and the ruling is given as under:

Entry 88 to IV Schedule of APVAT Act ,2005 reads as under

" Drugs and medicines whether patent or proprietary, as defined in clauses (i),(ii) and (iii) of section 3 (b) of Drugs and Cosmetics Act, 1940 ( Central Act 23 of 1940), including hypodermic syringes, hypodermic needles, perfusion sets, urine bags, catguts, sutures, surgical cotton, dressings, plasters, catheters, cannulae, bandages and similar articles, but not including:

a) Medicated goods.

b) Products capable of being used as cosmetics and toilet preparations including tooth Pastes, Tooth powders, cosmetics, Toilet articles and soaps.

c) Mosquito Repellants in any form.

If the products are manufactured by the applicant under Drug Licences issued by the competent authorities under Drugs and Cosmetics Act, 1940 ( Central Act 23 of 1040) they fall under entry 88 of IV Schedule and are liable to tax @ 4%. Hence, clarified accordingly.

Addl/Jt/Commissioner

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.