Issue: Classification under KVAT Act, 2003
Facts: Petitioner was aggrieved by the order by Commissioner of Commercial Tax under Section 59(4) of KVAT, 2003 in which it was held that blood collection monitors, blood storage refrigerators, platelet agaitators with incubators, plasma expressers, plasma and cyrobath will come under the Residuary Entry under Section 4(1)(b)(iii) and it would be taxable @ 12.5%. According to the petitioners the aforesaid products should be fall under Entry 61 of III Schedule as “Medical Equipments, Devices and Implants” and should be taxable @ 4%.
Submissions: According to petitioners, the aforesaid products are used for collection of blood samples in proper and safe prescribed manner, and further use in medical aid. Whereas, the Respondents contended that the said products does not help in diagnosis or treatment but they are in the nature of refrigerators, weighing machines and storage equipments. Further, according to Revenue these items could not be termed as ‘Medical equipments’
Judgment: The Hon’ble High Court held that in common parlance the aforesaid products in dispute are integrally connected and their separate existence in isolation cannot be conceived, much less sustained as they related with the diagnosis, prevention, monitoring, treatment or alleviation of diseases. Therefore, the aforesaid products come under the category of “Blood bank equipments and other medical equipments”.