9911796707
TMI Blog2014 (1) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... herein though basically used for packing of goods, this is not the normal packing material used generally, unless the goods for which it is used is fragile or breakable. This is only to avoid damage being caused to the goods depending upon the nature of goods. If goods are otherwise air bubble film rolls are not used. Therefore, though this is used as a packing material for goods, it cannot be termed as packing material in general. With reference to HSN Code 3920, we have to see whether the product in question gets attracted to any of the classification under HSN Code 3920 with reference to a particular product. None of the products referred to under this HSN Code 3920 indicates Air Bubble Film Rolls. Then we have to refer to the compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it falls under residuary clause, as there is no specific entry so far as Air Bubble Film Rolls. The appellant approached the authority for clarification to confirm the correct classification of the commodity by producing relevant material as well. Initially by order at Annexure-E they opined that the Air Bubble Film is a packing material with HSN Code 3923.90.90. It further opined, since the eight digits HSN Code does not figure in schedule-III, it is taxable at 12.5% vide Entry 103 of SRO 82 of 2006. The appellant raised a grievance that Annexure-E is not a speaking order giving any clarification, therefore it is not binding on the appellant. Again, the matter was placed before the authority for clarification by producing relevant docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to them, the rules of interpretation of schedules of the KVAT Act with reference to clause (i) of paragraph 2, the commodities which are given four digits HSN Code number shall include all those commodities coming under that heading of the HSN, therefore, it has to be seen first under which HSN Code number having four digits it would be attracted and thereafter depending upon the classification and a particular product one has to apply the test to know whether a particular rate of tax is leviable or not. According to them, though the product is used as packing material in the trade and industry, the commodity essentially having a poly ethylene film which is referred to as Air Bubble Film Rolls in the commercial practice. The product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closures, of plastics. On perusal of the classification, HSN Code 3923.10 is with reference to boxes, case, crates and similar articles, HSN Code 3923.21.00. Under HSN Code 3923.10.90 general heading 'other' under which sacks and bags (including cones) made of polymers of ethylene and other plastics, including vinyl chloride are noted. HSN Code 3923.30 refers to carboys, bottles, flasks and similar articles. HSN Code 3923.50 is with reference to stoppers, lids, caps and other closures. Except sacks and bags, none of the description of other items are not even nearer to the product in question. The product herein though basically used for packing of goods, this is not the normal packing material used generally, unless the goods for which it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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