2020 (8) TMI 638 - AAR - GST

Classification of goods - rate of tax - agricultural implements used for rubber tapping namely latex Collection Cup - HELD THAT - This authority has already issued ruling on the issue vide IN RE M/S. GEO THOMAS AND COMPANY 2019 (11) TMI 39 - AUTHORITY FOR ADVANCE RULING, KERALA , that latex collection cup is exclusively used as an agricultural implement for rubber tapping. The Rubber Board has accepted that plastic latex collection cups are agricultural implements widely being used in rubber plantations for collection of latex directly from the rubber trees. Therefore, it can be safely classified as agricultural implements manually operated used in the rubber plantations for harvesting the rubber latex - It is not specifically classified in Chapter 82 of Customs Tariff. However, these items comes under the description covered under HSN 8201 90 00 other hand tools of the kind used in agriculture, horticulture or forest as it is essentially used for collection of rubber latex by rubber cultivators. Plastic latex collection cup is an agricultural implement exclusively used for rubber tapping and comes under the classification HSN 8201 90 00 other hand tools of the kind used in agriculture, horticulture or forest . As such it is exempted from GST as per Sl.No. 137 of Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017.

Summary

Issues: Classification and rate of tax of agricultural implements used for rubber tapping namely latex Collection Cups.

The judgment by the Authority for Advance Ruling, Kerala, involved a request for clarification on the classification and tax rate applicable to plastic cups used in the agricultural activity of rubber tapping. The applicant, engaged in manufacturing and supplying these cups, sought a ruling on whether these cups qualified as agricultural implements. The cups were used for collecting rubber latex from rubber trees, attached with cup holders below tapping cuts. The Rubber Board certified that these cups were indeed used for agricultural activities. The Authority had previously ruled that latex collection cups were agricultural implements for rubber tapping. The cups were not specifically classified in the Customs Tariff but were deemed to fall under HSN 8201 90 00, categorized as "other hand tools used in agriculture, horticulture, or forest." Consequently, the ruling classified the plastic latex collection cups as agricultural implements exempt from GST under Notification No. 02/2017-Central Tax (Rate).