Order date – 21 November 2022

 Key Pointers –

• The Appellant, M/s. Sivantos India Pvt. Ltd. is engaged in the business of trading of hearing aids and their parts and accessories. The parts and accessories supplied by the Appellant are imported from manufacturer and supplied for use solely with the hearing part.
• The Appellant is currently supplying parts and accessories of hearing aids by classifying them under HSN 90219010 and charging GST @ 18% under Slno.453 to schedule III to Notification No. 01/2017 CT (Rate) dated 28-06-2017
• The issue involved here is about the classification and rate of tax on the parts and accessories which are suitable for use solely with hearing aid also whether the same are exempt by virtue of Slno. 142 of Notification No.2/2017 Ct (Rate) dated 28-06-2017 as amended from time to time?
• The AAAR State that since the parts and accessories of hearing aids falls under tariff item 90219010 are not specifically mentioned in any of the entries of the exemption Notification No.2/2017 Ct (Rate) and are also not specifically mentioned in either Schedule I, II, IV, V, and VI of the rate Notification No. 01/2017 CT (Rate), they will get covered under entry Slno.453 of Schedule III of Notification No. 01/2017 CT (Rate) as this is a residuary entry which covers goods under any chapter which are not specified under any of other rate schedule.
• The AAR also held that the description of goods in entry Slno.221 of Schedule II/255A of Schedule I does not include within its scope parts and accessories of hearing aids. Therefore AAAR upheld the ruling given by the lower authority that parts and accessories of hearing aids falling under tariff item 90219010 are not entitled for exemption under entry Slno. 142 of Notification No.2/2017 Ct (Rate) dated 28-06-2017.
• Hence the parts and accessories of hearing aids are chargeable to tax @18% in terms of entry Slno.453 to schedule III to Notification No. 01/2017 CT (Rate) dated 28-06-2017.