What is the classification and rate of tax of the product “Three Piece Eye Dropper”?
Transaction Date: 09-12-2005. Held : Covered by C-54, Rate of Tax is 4%. Facts in Issue The applicant is a private limited company manufacturing fibreglass reinforced plastic products. One of its units is manufacturing “Three Piece Eye Dropper” made of plastic consisting of bottle, nozzle and cap used as presterilised primary packing for eye formulations. The raw material required for manufacturing the “Three Piece Eye Dropper” are mainly LDPE, HDPE, pigment, etc. The raw materials are mainly imported. All the three components; i.e., bottles, nozzles & caps are manufactured and packed independently in equal quantities and dispatched to customers. After the medicine manufacturing companies fill the medicine in the bottle, the nozzle is fitted and the bottle is sealed with the cap. The applicant charges VAT @ 4% on the product being covered by entry at Sr. No. 164 of Excise heading 3923 of the notification dated 1-4-2005 under Schedule entry C-54 of the MVAT Act, 2002. Submissions of the
