Veterinary Instruments Known as "AI Crate/Travis" Attracts 18% GST: AAR [Read Order]

The Gujarat Authority for Advance Ruling (AAR), ruled that the AI Crate/Travis is classified under Tariff Item (TI) 7306 of the Customs Tariff Act and attracts 18% Goods and Service Tax (GST).

The applicant, Kantaben Rameshbhai Chaudhari, is engaged in the manufacture of veterinary instruments known as Al Crate (Artificial Insemination crate)/travis. This equipment/ instrument is used for medical treatment of animal. It is installed at Veterinary Dispensary.

The applicant is of the view that their product falls under TI 9018. He has also relied on the judgement of the Supreme Court in the case of Delhi Cloth and General Mills Co Ltd.

The use of the AI Crate (Artificial Insemination crate)/Travis, as listed out in the application are as under:

• It is used in animal husbandry department for medical treatment of cattle [cows & buffalo]
• It is mainly used in controlling large animals for the purpose of treatment and operations
• It is also used for controlling animal during artificial insemination; cattle is fixed and tied to the iron tubular Travis to ensure that they do not move during the course of treatment.

Ramesh bhai Chaudhari, S D Modi, Advocates and Kaushik Chhable, Tax Consultant, who appeared on behalf of the applicant and reiterated the facts as stated in the application and showed photograph of the instrument for which this ruling on its classification is being sought. It was further informed that the instrument is only used for artificial insemination. The Counsels lastly relied on copies of tender and certificates enclosed with application to substantiate their averment.

A Two-Member Bench comprising Milind Kavatkar (Member, SGST) and Amit Kumar Mishra (Member, CGST) observed that “The diagram of the product in question viz AI crate (Artificial Insemination crate)/Travis, and the photograph of the product that was shown during the course of personal hearing, clearly depict that the product is nothing but a structure made of tubes, pipes of iron and steel. Ideally, therefore, the product falls within the ambit of TI 7306.” The Authority thus concluded that as far as rate of tax is concerned, we find that in terms of Notification No. 01/2017-CT (Rate) dated 28.06.2017, Schedule III, Sr. No. 220, the rate of GST is 18%. The product AI crate (Artificial Insemination Crate)/Travis is leviable to GST at the rate of 18% [9% CGST and 9% SGST).

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates