Vaccine Carrier and Vaccine Cold Box classified under HSN 3923 10 30 and taxable at 18%: AAR

Case Details: Authority for Advance Rulings, Uttar Pradesh Nilkamal Ltd., In re - [2021] 124 taxmann.com 610 (AAR- UTTAR PRADESH)

Judiciary and Counsel Details

• • Abhishek Chauhan and Dinesh Kumar Verma, Member
  • Vinod Kumar, CA for the Applicant.

Facts of the Case

The applicant was engaged in manufacturing of vaccine carrier and vaccine cold box. These products were manufactured by using materials of High Density Polyethylene [HDPE] and insulated with Polyurethane Foam (PUF) which would protect them from external heat. It filed an application for advance ruling to determine classification and taxability of products manufactured by it.

AAR Held

The Authority for Advance Ruling observed that the Vaccine Carrier or Vaccine Cold Box as such is not capable of keeping the vaccines and diluents cold unless the coolant packs or ice packs are placed inside Vaccine carrier or Vaccine Cold Box.

As per the literature of UNICEF, the Vaccine Carriers and Cold Boxes are insulated containers. As per the description of vaccine carrier and vaccine cold box submitted by the applicant as well as available on UNICEF website, these products would not merit for classification as instrument and appliances used in medical science under chapter sub-heading 9089099. Since the essential character of Vaccine Carrier and Vaccine Cold Box is insulated ware, it would fall under chapter sub-heading 39231030 and taxable at 18%.

List of Cases Referred to

• • Star Paper Mills v. Collector of C.Ex 1989 taxmann.com 631 (SC) (para 5)
  • Star Radio Electric Co. v. CST [1971] 27 STC 367 (Guj.) (para 5)
  • CCE v. Connaught Plaza Restaurant (P.) Ltd. 2012 (286) ELT 321 (SC) (para 5)
  • Indian Aluminium Cables Ltd. v. Union of India 1985 taxmann.com 427 (SC) (para 5)
  • CCE v. Sharma Chemical Works 2003 taxmann.com 1240 (SC) (para 5)
  • Sun Export Corporation v. Collector of Customs 1997 taxmann.com 696 (SC) (para 5).