Aluminium Foil Container is classifiable under 7615 with applicable GST rate

[CA Bimal Jain]

The Hon’ble Madras High Court in the case of M/S. VEERAM NATURAL PRODUCTS, REPRESENTED BY ITS PARTNER V.A. KODISWARAN VERSUS THE COMMISSIONER OF GST & CENTRAL EXCISE, THE ADDITIONAL COMMISSIONER OF GST & CENTRAL EXCISE (APPEALS) , THE ASSISTANT COMMISSIONER OF CGST & CENTRAL EXCISE, THIRUTHANGAL  - 2024 (8) TMI 1440 - MADRAS HIGH COURT held that the aluminium foil container is classifiable under Chapter Heading 7615 of the Customs Tariff Act, 1975 with 12% of GST based on Apex Court Judgment.

Facts:

M/s Veeram Natural Products (“the Petitioner”), classified their products under the heading 7615 of Customs Tariff Act, 1975 as ‘Table, kitchen or other household articles of aluminium'.

The Department contended that products are liable to be classified under the heading of 7607 as ‘Aluminium foil container’ which attracts 18% of GST.

However, the Commissioner of CGST & Central Excise (“the Respondent”) is claiming the product would come under the Chapter heading 7607 with 18% of GST.

The Respondent has passed the Order-in-Original dated June 21, 2022 (“the Impugned Order-1”) and thereafter, passed the Common Order- in- Appeal July 04, 2023 (“the Impugned Order-2”) against the Petitioner. 

Hence, aggrieved by the Impugned Orders, the Petitioner has filed the present writ petition before the Hon’ble Madras High Court for the assessment period from June 2018 to June 2021.

Issue:

Whether product Aluminium Foil Container is classifiable under 7615 with GST 12%?

Held:

The Hon’ble Madras High Court in M/S. VEERAM NATURAL PRODUCTS, REPRESENTED BY ITS PARTNER V.A. KODISWARAN VERSUS THE COMMISSIONER OF GST & CENTRAL EXCISE, THE ADDITIONAL COMMISSIONER OF GST & CENTRAL EXCISE (APPEALS) , THE ASSISTANT COMMISSIONER OF CGST & CENTRAL EXCISE, THIRUTHANGAL  - 2024 (8) TMI 1440 - MADRAS HIGH COURT held as under:

• Relied on, M/S. VEERAM NATURAL PRODUCTS, REPRESENTED BY ITS PARTNER V.A. KODISWARAN VERSUS THE COMMISSIONER OF GST AND CENTRAL EXCISE, THE ADDITIONAL COMMISSIONER OF GST AND CENTRAL EXCISE (APPEALS) , MADURAI - 2023 (10) TMI 983 - MADRAS HIGH COURT against the order dated October 28, 2020, where the Court had disposed the writ petition by following the order of the Hon’ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS HINDALCO INDUSTRIES LTD. - 2023 (6) TMI 844 - SC ORDER held that the product Aluminium Foil Container is classifiable under 7615 with GST 12%.
• Held that, while dropping the demand in the aforesaid proceedings for the period commenced from July 2022- December 2022.  Hence, the writ petition was allowed  and consequently, the amount, that was pre-deposited by the petitioner, was directed to be refunded in accordance with law within 30 days.

Our Comments:

The Entry for classification is provided by Ministry of Finance vide Notification No. 01/2017- Central Tax (Rate) dated June 28, 2017:

S. No.	Chapter/ Heading/Sub-Heading/Tariff item	Description of Goods
(1)	(2)	(3)
267	7606	Aluminium plates, sheets and strip, of a thickness exceeding 0.2 mm
275A	7615	All goods other than table, kitchen or other household articles, of aluminium; Utensils; Milk cans made of Aluminium.

S. No. 275A was inserted vide Notification No. 41/2017 dated November 14, 2017. It was applicable from November 15, 2017. Further, milk cans made of aluminium were inserted in the description vide Notification No. 02/2024-Central Tax (Rate) dated July 12, 2024. It was applicable with effect from July 15, 2024.

(Author can be reached at [email protected])