Zirconium Oxide Ceramic Dental Blanks used for the laboratory to be covered under tariff heading 6909 for GST

Zirconium Oxide Ceramic Dental Blanks used for the laboratory to be covered under tariff heading 6909 for GST

Devyani | Jan 27, 2022 |

Zirconium Oxide Ceramic Dental Blanks used for the laboratory to be covered under tariff heading 6909 for GST

Zirconium Oxide Ceramic Dental Blanks used for the laboratory to be covered under tariff heading 6909 for GST

Maharashtra AAR: The product namely “Zirconium Oxide Ceramic Dental Blanks” is a Ceramic ware for use of laboratory and the said product is aptly covered under tariff heading 6909 of the GST Tariff

Maharashtra AAR: M/s Jyoti Ceramic Industries Pvt. Ltd.; GST ARA-118/2019-20/B-06; Mumbai; 19.01.2022

The present application has been filed by the Applicant seeking advance ruling in respect of classification of any goods or services or both.

Facts:

 Applicant is engaged in the manufacture, sale & export of various ceramic products, known as “Industrial” or “Technical Ceramics.” Applicant is also engaged in running a dental clinic at separate location.

Applicant was registered under erstwhile tax regime and was discharging excise duty, service tax and VAT on the manufacture, sale & export of its products and taxable services as applicable.

Applicant’s contention regarding various items and services and their corresponding fiding by the Ld. AAR is summarised herein below:

Zirconium Oxide Ceramic Dental Blanks”

Applicant is engaged in the manufacture, sale & export of “Zirconium Oxide Ceramic Dental Blanks” in various shapes & sizes which is classified by Applicant under chapter heading 69091200.

It was observed by the AAR that the Applicant manufactures Zirconium Oxide Ceramic Dental Blanks from clinical grade raw materials (Yittria stabilised zirconium oxide powder is taken and mixed with other ingredients like binders etc. As per pre-defined recipe), which have been classified by the applicant under chapter heading 69091200 of the erstwhile Central Excise Act and also under the GST regime.

The applicant has submitted that the said product is used in dentistry for artificial teeth and should be covered under the same HSN as artificial teeth i.e.9021 of the GST Tariff.

Chapter 6909 covers Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture, ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods.

After considering the submissions made by the applicant and a reference of the zircon Industry Association it was found that the impugned product can be treated as a ceramic ware and therefore is covered under chapter 69 of the GST Tariff. It was found that the impugned product can be treated as a ceramic ware and therefore is covered under chapter 69 of the GST Tariff.

It was found that articles used for the conveyance and packing of goods of ceramic attract 12% GST as per schedule II of the aforesaid Notification. Since the impugned product cannot be considered as Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic the same is not covered under the entry no. 177A of the above mentioned notification.

The impugned product can be said to be type of ceramic ware for use of laboratory, etc. And therefore it was found that the impugned product is aptly covered under tariff heading 6909 of the GST Tariff.

Impugned product be classified under Chapter 90212100 as “Artificial Teeth and Dental fittings..”

The Bench refused to agree with the with the contention of the Applicant that the impugned product to be considered as artificial teeth and dental fittings, purely because the impugned product to be considered as Artificial teeth and dental fittings, purely because the impugned product, when it leaves the factory of the applicant are in various shapes like squares and circles, etc. are not in shape of teeth, not ready to be used as Artificial Teeth and therefore cannot be considered as artificial teeth.

As per explanatory notes to subheading 6909.12, this subheading covers high-performance ceramic articles. These articles are composed of a crystalline ceramic matrix whisker, or fibres of reinforcing material may also be dispersed in the matrix to form a composite ceramic material. In view of the same the Bench opined that the impugned product is not artificial teeth, rather the same are a type of Ceramic wares used in laboratory etc.

Whether Artificial Teeth , Crown, Bridges, Dental Restoratives etc. Produced from the product of Applicant is classifiable under Chapter heading 90212100.

 The Applicant has submitted that, besides other products, it is also engaged in manufacture, sale & export of the impugned product in different shapes & sizes. Applicant submitted that the artificial teeth, crowns, bridges, dental restoratives etc. are manufactured by dental laboratories. The applicant has not submitted that whether they also own dental laboratory. Since the question raised by the applicant does not pertain an activity being undertaken by them the said question cannot be answered by the authority as per section 95 of the CST Act, 2017.

Whether the health care services including providing of Artificial Teeth, Crown, Bridges etc. treatment by dental clinic of Applicant to its patients, under chapter heading 999312, attracting Nil rate of GST.

The explanatory notes for the Scheme of Classification of Services are based on the explanatory notes to the United Nations Central Product Classification (UNCPC).The service accounting Code (SAC) 9993 covers Human Health and Social Care Services. Accounting Code 999312 covers Medical and Dental Services.

The bench observed that Service Code 999312 is an inclusive Code and covers Dental Services provided by a registered clinic, hospital; practitioner, etc. will be covered under service code 999312.

Health services in the form of dental Services like fitment of artificial ceramic teeth, crown, bridges, and dental restoratives are carried out in applicant’s clinic by qualified Dentists who can be considered as Authorised Medical Practitioners, since dentistry is a part and parcel of Medical Practice.

However the provision of fitment of artificial ceramic teeth, crown, bridges, dental restoratives carried out in applicant’s clinic will be eligible for exemption only if they are carried out a part of Health care Services i.e. they are carried out as a diagnosis or treatment or care for illness, injury, deformity, or abnormality and not as part of and including, cosmetic treatment.

Whether health care services namely bleaching of teeth and dental veneers for smile designing provided y dental clinic of Applicant t its patients falls under Chapter heading 999312 at Nil rate of GST or Chapter Heading 999722 at 18% GST. 

Regarding Dental Veneers”, applicant has submitted that, Dental veneers treatment is known as smile designing. As per their submissions, Dental veneers are wafer thin, custom made shells of tooth coloured ceramic designed to cover the front surface of teeth to improve facial appearance and/or smile.

Dental Veneer Treatment also, cannot be considered as services by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy. Further the said treatment falls under the exclusion part of the definition of “Health care services”. The discussions in aforesaid para, pertaining to “bleaching of teeth” is applicable in case of “Dental Veneer Treatment” also and therefore we hold that Dental veneer treatment which is done to enhance a ‘smile’ is explicitly covered  under SAC 999722.

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