2018 (10) TMI 349 - AAR - GST

Classification of goods - rate of tax - Coir Sheets / Rubberised Coir sheets or Blocks - Held that - As the information given by the applicant is not sufficient enough to conclude the rate of tax applicable for the products they are referring to in their application, as coir products (except coir mattresses) are covered under schedule II and coir mattresses whether or not covered are covered under schedule III to Notification No.1/2017 2017-Central Tax (Rate), dated 28.6.2017 as amended , and even the mattress layers needs to be classified in the Tariff heading 9404 covered under Schedule III to the Notification referred above, the applicant has been asked during the time of personal hearing to produce copy of the product catalogue to decide the correct rate of tax applicable - If the product is being used in manufacturing Mattresses, then it attracts rate of duty applicable under schedule III of the Notification No.1/2017-Central Tax (Rate), dated 28.6.2017 as amended. Since the applicant has not produced the required information even after giving enough time, the issues raised in their application cannot be decided for want of information from their end and advance ruling cannot be given in this case. Application disposed off.

Summary

Issues:
Rate of Tax on "Coir Sheets / Rubberised Coir sheets or Blocks"

Analysis:
I. The applicant, M/s. Victory Comfort Products, sought an advance ruling on the classification and rate of tax applicable to "Coir Sheets / Rubberised Coir sheets or Blocks" under Section 97(1) of the TGST Act, 2017.

II. The applicant submitted Form GST ARA-01, along with a statement detailing their interpretation of the law and relevant facts. They also paid an application fee of ?5,000.

III. During a personal hearing, the applicant explained that their product is a coir sheet made of coir fibre, natural latex rubber, and chemicals. They described the manufacturing process, end uses, and the current tax rate they were applying.

IV. The Authority examined the information provided by the applicant and noted that coir products (except coir mattresses) are taxed at 6% CGST + 6% SGST, while mattress supports and similar furnishing fall under a different tax rate.

V. However, due to insufficient information from the applicant regarding the exact nature of their product and its classification, the Authority requested a product catalogue to determine the correct tax rate. Despite reminders and additional time provided, the applicant failed to produce the necessary information.

VI. As a result of the applicant's non-compliance and failure to provide essential details, the Authority concluded that the issues raised in the application could not be decided, and an advance ruling could not be granted. The application by M/s. Victory Comfort Products was consequently disposed of.