9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 307 - AAAR - GSTClassification of goods - Plastic Seedling tray - part and accessories of agriculture machinery or not - rate of GST - whether classified under Chapter 8201 or otherwise? - SI.No. 137 of Notification No 2/2017-Central Tax dt 28.06.2017 - challenge to AAR decision - Held that - Base metals and articles of base metals only are covered under Section XV of the Customs Tariff Act. Those articles which are made of base metals or on support of base metal are only covered under Chapter 82 of the customs Tariff Act - As apparent from the submissions of the Appeal itself the article under consideration is made only of plastics/ polypropylene. In the case at hand, the product, Agricultural Seedling Tray , is made up of Plastics and not of any of the base metals specified in the section notes as stated by the Appellant themselves - only those hand tools which are of base metal and has a working edge, used as a hand tool in agriculture merits classification under this residual entry. The product at hand is neither made of base metal nor has a working edge as required of a tool under this chapter and therefore the product is not to be classified under Chapter 8201. Classification under a Heading is to be governed only by the relevant Tariff-entries, Heading-description, etc. Heading 8201, as discussed above, do not envisage that all items used for agriculture would be covered therein but specifically as given in the General Explanatory Notes to Chapter 82, mentioned above, are to be classified based on the constituent material it is made of - The lower authority has considered the above and accordingly pronounced the Ruling. There is no reason to interfere with the same. AAR decision upheld.
Issues Involved:
1. Classification of 'Agricultural Seedling Trays' manufactured and supplied by the Appellant. 2. Applicable tax rate on 'Agricultural Seedling Trays'. 3. Determination if the product falls under Chapter 8201 as a tool used in agriculture and is exempt from GST. Detailed Analysis: Issue 1: Classification of 'Agricultural Seedling Trays' The Appellant sought an Advance Ruling on the classification of 'Agricultural Seedling Trays' made of plastic. The original Advance Ruling Authority classified these trays under CTH 39269099, identifying them as articles of plastics not elsewhere specified. The Appellant contended that these trays should be classified under Chapter 8201 as agricultural implements, which would make them exempt from GST. Issue 2: Applicable Tax Rate on 'Agricultural Seedling Trays' The original Advance Ruling Authority determined that the 'Agricultural Seedling Trays' are subject to a tax rate of 9% CGST and 9% SGST. The Appellant argued that since the trays are used solely for agricultural purposes, they should be exempt from GST, similar to their classification under the TNVAT Act where they were considered agricultural implements and exempted from tax. Issue 3: Determination if the Product Falls Under Chapter 8201 The Appellate Authority evaluated whether the product could be classified under Chapter 8201, which covers hand tools used in agriculture, horticulture, or forestry, typically made of base metals. The Authority noted that Chapter 82 only includes tools made of base metals, and the trays in question are made of plastic (polypropylene). The principle of 'ejusdem generis' was applied, indicating that general terms following specific expressions take their meaning from those specific terms. Since the trays are not made of base metals and do not have a working edge, they do not fit under Chapter 8201. The Authority concluded that the trays are correctly classified under CTH 39269099 as articles of plastics. Conclusion: The Appellate Authority upheld the original Advance Ruling, confirming that the 'Agricultural Seedling Trays' made of plastic are classified under CTH 39269099 and are subject to a tax rate of 9% CGST and 9% SGST. The Authority found no basis to classify the trays under Chapter 8201, as they do not meet the criteria of being made from base metals or having a working edge. The appeal was disposed of accordingly, with no changes to the original ruling.
|
