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2021 (10) TMI 204 - AAR - GSTClassification of goods - rate of tax - Aluminium Composite Panel / sheet - HSN Code 3920 or HSN Code 7606 or HSN Code 7610? - HELD THAT - Chapter 39 of the GST Tariff pertains to Plastics and articles thereof. Chapter 3920 covers other plates, sheets, film, foil, tape strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials. The applicant has clearly stated that the impugned product is Plastic sheet laminated with Aluminium Sheets - In view of Tariff Heading 3920 it is clear that the impugned products, being plastic sheets laminated with aluminium sheets, are not covered under Tariff Heading 3920. Heading 7610 of GST tariff - HELD THAT - It is seen that Heading 7610 covers Aluminium structures and its parts; aluminium plates, rods, profiles, tubes and the like, prepared for use in structures - the submissions made by the applicant do not support the fact of the subject product being termed as Aluminium Structure and/or parts thereof. From the facts and submissions before us we find that the subject product is not covered by the Tariff Heading 7610. Heading 7606 of the GST tariff - HELD THAT - Heading 7606 of the GST tariff covers ALUMINIUM PLATES, SHEETS AND STRIP, OF A THICKNESS EXCEEDING 0.2 mm - In the subject case, under the ACP Product Information has mentioned that the Top and Bottom Aluminium Foil thickness in the subject products ranges upto 0.5 mm. Thus it is seen that the subject product would essentially exceed the thickness of 0.2 mm - the subject product is covered under Heading 7606 of the GST Tariff and the rate of GST on the impugned product is 18%.
Issues Involved:
1. Classification of Aluminium Composite Panel/Sheet under appropriate HSN Code. 2. Determination of the applicable rate of tax under SGST and CGST Acts. Issue-wise Detailed Analysis: 1. Classification of Aluminium Composite Panel/Sheet under appropriate HSN Code: The applicant, M/s. Aludecor Lamination Private Limited, sought to determine whether their product, Aluminium Composite Panel/Sheet (ACP Sheets), should be classified under HSN Code 3920, 7606, or 7610. The ACP Sheets are described as "Plastic sheet laminated with Aluminium Sheets," consisting of a non-toxic polythene core laminated with thin aluminium sheets on both sides. The jurisdictional officer submitted that the ACP Sheets should be classified under HSN Code 7606, which covers "Aluminium plates, sheets and strip, of a thickness exceeding 0.2 mm," and carries a tax rate of 18%. The officer argued that HSN Code 3920 pertains to plastic sheets not reinforced or laminated with other materials, which does not apply to ACP Sheets as they are laminated with aluminium. HSN Code 7610 pertains to aluminium structures and parts thereof, which also does not fit the description of ACP Sheets. The authority reviewed the manufacturing process and use cases of the ACP Sheets, noting that the product is used in various industries such as construction, railways, signage, shipbuilding, furniture, and automobiles. The essential user characteristics of the product, such as protection from heat and water, are attributed to the aluminium lamination rather than the plastic core. The authority referred to the decision in Commissioner of Customs (Imports), Chennai vs. ICP India Pvt. Ltd (2018), where it was held that similar products are classified under HSN Code 7606. The authority concluded that the ACP Sheets should be classified under HSN Code 7606, as they are primarily aluminium products with a thickness exceeding 0.2 mm. 2. Determination of the applicable rate of tax under SGST and CGST Acts: The applicant also sought clarification on the applicable rate of tax for ACP Sheets under the SGST and CGST Acts. The jurisdictional officer and the authority both confirmed that the tax rate for products classified under HSN Code 7606 is 18%, with 9% each under CGST and SGST. Conclusion: The authority ruled that the Aluminium Composite Panel/Sheet is covered under HSN Code 7606. Consequently, the applicable rate of tax for the ACP Sheets under both the SGST Act and the CGST Act is 18% (9% each under CGST and SGST).
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