9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 193 - AAR - GSTClassification of goods - rate of GST - Quicklime having 86% Calcium oxide content - Slaked lime having 86% Calcium hydroxide content - Held that - Chapter 2522 of Customs Tariff covers Quicklime, Slaked Lime and Hydraulic Lime, Other Than Calcium Oxide and Hydroxide of Heading 2825 and CTH 2522 1000 covers Quick lime and CTH 25222000 covers slaked lime - According to Wikipedia, Calcium Oxide is in manufacturing of cement, paper, and high-grade steel, for medicinal purpose and insecticides. Calcium Hydroxide is used in food, paper industry and in water and sewage treatment plant. It is seen that purified forms of calcium oxide and calcium hydroxide having industrial applications with high purity, which is the case in hand here, are covered under CTH 28259090 for calcium oxide and CTH 28259040 for calcium hydroxide. It is found from the manufacturing process and the requirement of the intended buyers, that the goods to be supplied is industrial grade Calcium Hydroxide of high purity of 86% and industrial grade Calcium oxide of high purity of 86% are rightly classifiable under CTH 28259040 and CTH 28259090 respectively taxable at 9% CGST and 9% SGST as per entry sl.No.38 of Schedule III of Notification no. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017 as amended respectively.
Issues Involved:
Classification and applicable GST rate for Quicklime and Slaked Lime with specific purity content. Analysis: The Applicant sought an Advance Ruling on the classification and GST rate for Quicklime and Slaked Lime with 86% Calcium Oxide and Calcium Hydroxide content, respectively. The Applicant manufactures these products, intending to sell them to Water Treatment Plants and Industries. They argued that Quick Lime and Slaked Lime with purity levels between 70-90% fall under Chapter 28. They provided supporting documents like Purchase Orders, Invoices, Lab Reports, and a description of the manufacturing process. The manufacturing process involves calcining limestone to obtain Quick Lime (Calcium Oxide) and then converting it to Slaked Lime (Calcium Hydroxide) by adding water. The Applicant's products are intended for industrial use, not building purposes. The Applicant relied on a previous Advance Ruling by the Central Board of Excise and Customs to support their classification. The key issue to be decided was the classification and GST rate applicable to Quicklime and Slaked Lime with 86% purity content. The Authority analyzed the Customs Tariff and HSN Explanatory Notes to determine the classification. Quicklime and Slaked Lime fall under Chapter 2522, while purified forms of Calcium Oxide and Calcium Hydroxide are excluded from this chapter. Chapter 28 covers Inorganic Chemicals and compounds, including Calcium Oxide and Hydroxide. The HSN Explanatory Notes clarified that purified forms of Calcium Oxide and Hydroxide are classified under Chapter 28. The Authority applied this interpretation to the Applicant's case, concluding that their products are industrial grade Calcium Hydroxide and Calcium Oxide of high purity, classified under CTH 28259040 and CTH 28259090, respectively, taxable at 9% CGST and 9% SGST. In conclusion, the Authority ruled that the Applicant's Industrial Grade Quick Lime and Slacked Lime with 86% purity content are rightly classified under CTH 28259090 and CTH 28259040, respectively. These products are taxable at 9% CGST and 9% SGST as per specific entries in the relevant notifications and amendments.
|
