No. VAT/MMB-1005/24/Adm-3                     

Mumbai, Dt.: 10-1-2006

Trade Cir.- 5T of 2006

Sub:	Schedule entry C-29 A (a):- Devices notified from time to time by the Central Government under sub-clause (iv) of clause (b) of section 3 of the Drugs and Cosmetics Act, 1940

Gentlemen/Sir/Madam,

        Entry 29A (a) contained in schedule C appended to the Maharashtra Value Added Tax Act, 2002 reads as follows:-

 

      “C 29 A (a) Devices notified from time to time by the Central Government under sub-clause (iv) of clause (b) of section 3 of the Drugs and Cosmetics Act, 1940”

 

2.       Sub clause (iv) of clause (b) of section 3 of the Drugs and Cosmetics Act, 1940 reads as follows:-

 

          “Such devices intended for internal or external use in the diagnosis, treatment, mitigation or prevention of disease or disorder in human beings or animals, as may be specified from time to time by the Central Government  by notification in the Official Gazette, after consultation with the Board.”
 

3.       The Central Government , by notification no. G.S.R. 365 (E), Ministry of Health and Family Welfare (Department of Health) dated 17^th March, 1989, had notified the following devices as drugs under sub clause (iv) of clause (b) of section 3 of the Drugs and Cosmetics Act, 1940:

i) Disposable Hypodermic Syringes
ii) Disposable Hypodermic needles

iii) Disposable Perfusion sets

iv) In – vitro diagnostic devices for HIV, HbsAg and HCV

Accordingly, these four devices were covered under the scope of the entry C 29 A(a) with effect from 1^st April 2005.

4.       Now the Central Government has issued another notification dated 6^th October 2005 bearing no. S.O. 1468 (E), Ministry of Health and Family Welfare, (Department of Health) and has further notified the following devices as drugs under sub-clause (iv) of clause (b) of section 3 of the Drugs and Cosmetics Act, 1940

1. Cardiac Stents

2. Drug eluting stents

3. Catheters

4. Intra ocular lenses

5. I.V. cannulae

6. Bone cements

7. Heart valves

8. Scalp vein set

9. Orthopaedic implants

10. Internal prosthetic replacements

5.       Accordingly, it is now clarified that the above devices will be covered under the scope of the schedule entry C 29A (a) and will be taxable @ 4% with effect  from 6^th October 2005, i.e. the date of effect of the notification issued by the Central Government.

 

6.      This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.

 

7.       You are requested to bring the contents of this circular to the notice of the members of your association.

 

                                                                                 Yours faithfully,

(B.C. Khatua)
Commissioner of Sales Tax,
Maharashtra State, Mumbai.