2019 (11) TMI 39 - AAR - GST

Classification of goods - rate of tax - agricultural implements used for rubber tapping such as Spouts, Cup Holders and Collection Cups - HELD THAT - Spout, cup holder and latex collection cup are agricultural implements exclusively used for rubber tapping come under the classification HSN 8201 90 00 other hand tools of the kind used in agricultural, horticulture or forest , As such these items are exempted from GST.

Summary

Issues Involved:
Classification and rate of tax of agricultural implements used for rubber tapping such as Spouts, Cup Holders, and Collection Cups.

Analysis:
The judgment by the Authority for Advance Ruling in Kerala revolved around the classification and tax treatment of agricultural implements used for rubber tapping. The applicant, engaged in the manufacture and supply of goods for rubber farmers, sought clarification on the classification and tax rate of products like plastic cups, spouts, and cup holders used in rubber tapping activities. In the pre-GST era, these items were exempt from tax as they were considered agricultural implements.

The applicant's authorized representative provided detailed descriptions of the spouts, cup holders, and latex collection cups. It was explained that these items are crucial for rubber tapping activities, as certified by the Rubber Board. The spout, made of galvanized iron or tin sheet, guides latex into the collection cup, while the cup holder keeps the cup in place. Additionally, the latex collection cup, made of plastic, is widely used in rubber plantations for collecting latex directly from the trees.

After a thorough examination, the Authority concluded that spouts, cup holders, and latex collection cups are indeed agricultural implements exclusively used for rubber tapping. These items were classified under HSN 8201 90 00 as "other hand tools used in agricultural, horticulture, or forest." Consequently, the ruling stated that these items are exempt from GST, aligning with their classification as agricultural implements essential for rubber tapping activities.