2019 (2) TMI 1525 - AAR - GST

Classification of goods - Gudakhu - liability to pay NCCD (National Calamity Contingency Duty) - Held that - Gudakhu as manufactured by the applicant is certainly not classified under any specific tariff item in any of the sub-headings under the Heading 24 03. Accordingly, it can be classified and rightly so under the residual tariff item 2403 99 90 - other of the said Chapter Heading because of its composition, character and use. Determination of the liability to pay NCCD (National Calamity Contingency Duty) - Held that - It is clarified that the aforesaid duty is a levy under the Central Excise Act and not under the CGST/ OCST/IGST Act. The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. NCCD being not a levy under the OGST/CGST Act, it is not within the competence and mandates of the Authority of Advance Ruling constituted u/s 96 of the OGST Act to give a ruling on the liability of the applicant to pay NCCD.

Summary

Issues:
1. Classification of 'Gudakhu' under GST Tariff Heading
2. Determination of the liability to pay NCCD (National Calamity Contingency Duty)

Issue 1: Classification of 'Gudakhu' under GST Tariff Heading

The applicant sought an Advance Ruling on the appropriate classification of 'Gudakhu' under the GST Tariff Heading. The applicant contended that 'Gudakhu' should be classified under the code 2403 11 10, considering it as a tobacco product. The applicant referenced a case from the Hon'ble Odisha High Court to support this classification. However, the jurisdictional officer argued that 'Gudakhu' is not entirely tobacco but a product consisting of various materials, primarily applied on teeth and chewed. The officer proposed classifying it under a different heading, 'Other--2403 99 901', as it is different in essential character from the specified tobacco products meant for chewing only. The Authority analyzed the composition, character, and use of 'Gudakhu' and concluded that it should be classified under the residual tariff item 2403 99 90 due to its distinct characteristics and use as a toothpaste.

Issue 2: Determination of the liability to pay NCCD (National Calamity Contingency Duty)

Regarding the liability to pay NCCD, the Authority clarified that this duty falls under the Central Excise Act and not the CGST/OGST/IGST Act. As the Authority's jurisdiction is limited to matters prescribed in the GST Acts, it cannot rule on the liability for NCCD. Therefore, the ruling focused solely on the classification of 'Gudakhu' under the GST Tariff Heading. The Authority directed that if either the applicant or the jurisdictional officer is dissatisfied with the ruling, they may appeal to the Odisha State Appellate Authority for Advance Ruling within 30 days.

In conclusion, the Authority ruled that 'Gudakhu' manufactured by the Applicant should be classified under the GST Tariff Heading '2403 99 90'. The detailed analysis considered the composition, characteristics, and intended use of 'Gudakhu' to determine its appropriate classification.