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TMI Blog2018 (5) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... l? - interpretation of statute - Held that: - The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise - the Chapter Notes may also be referred to understand the inclusions and exclusions therefrom. The applicant is advised to understand the above Rules and determine the classification accordingly - In absence of the needful information as to the constituent materials of the trophies, no exact decision can be given. Application disposed off. - GST-ARA-12/2017/B-15 - - - Dated:- 23-3-2018 - MAHARASHTRA AUTHORITY FOR ADVANCE RULING PROCEEDINGS (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by ACRYMOLD, the applicant, seeking an advance ruling in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss, metal, plastic etc) under which HSN code should it be classified? Can we have an official domestic classification for these products (like in china) so that a uniform IGST/CGST rate is charged across our industry by all traders, As there is no formal association who can handle this i beg to ask you to take notice of this case with utmost urgency. I am attaching some copies of Bill of Entry and Invoices from Mumbai and other states this Ietter I write to you not to complain against any particular trader/Manufacturer, but tor saving traders manufacturers who are following correct business practises. Hoping that you will consider this application at the earliest and escalate this issue so that there is no loss of revenue for the Centre as well as the state. Statement of relevant facts having a bearing on the question (s) raised. Trophies listed under HSS code 83062920 For Metal Statements containing the applicant s interpretation of low and/or facts, as the case may be, in respect of the aforesaid question(s) (i.e. applicant's view point and submission on issues on which the advance ruling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ?? ?? 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim , could be seen thus- l have perused the application submitted by the dealer. It is observed that the dealer is an importer, manufacturer and trader in Trophies. These trophies are made with the combination of Metal, wood, glass etc. The dealer has applied for advance ruling of rate of tax of these articles As regards this, I have examined the HSN code classification of these goods. It is observed that HSN code describes the articles which are made up or only one substance. For example - 1) HSN code 83062920 (Rate of tax 12%) describe trophies, however Chapter Head 83 is specifically meant for the articles made up of Base metal. 2) HSN code 70181090 describes articles made up of glass only (Rate of tax 18%) 3) HSN code 39261019 is meant for other articles of plastic and articles of other materials (Rate of tax is 18%). 4) HSN code Chapter heading 4414 to 4421 applies to articles of the wood (Rate of tax is 18%). 5) HSN code 68099000 is meant for articles made up of plaster of Paris (Rate of tax 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we sell all trophies made of any material under this HSN? 2. If different code is allocated to trophies assembled of different material, I would like to know if there is a combination of different materials and about 75% (value terms) is getting used of any one Raw Material, under which HSN should we make bill? We shall deal with the questions in the order as follows : Question 1 If the word TROPHY is specifically mentioned under 83062920, So can we sell all trophies made of any material under this HSN? To answer the question, we refer to the Customs Chapter 83. This Chapter is for Miscellaneous articles of base metal . A base metal is a common and inexpensive metal, as opposed to a precious metal such as gold or silver. Base material is different from base metal. The Harmonized Commodity Description and Coding System Explanatory (HSN) Notes and the Customs Tariff Notes in respect of SECTION XV about BASE METALS AND ARTICLFS OF BASE METAL clarifies thus - 3. Throughout this Schedule, the expression base metals means : iron and steel, copper, nickel, aluminium, lead, zinc, tin, tungsten (wolfram), molybdenum, tantalum, magnesium, cobalt, bismuth, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being entirely composed of that metal as an alloy of which, by virtue of Note 5, it is classified; and (c) a cermet of heading 8113 is regarded as a single base metal. We find that the HSN Notes of the Section XV under the Heading General also clarify thus - GENERAL This Section covers base metals (including those in a chemically pure state) and many articles thereof A list of goods of base metal not covered by this Section is reproduced at the end of this Explanatory Note. The Section also includes native metals separated from their gangues, and the mattes of copper, nickel or cobalt. Metallic ores and native metals still enclosed in their gangues are excluded (heading 26.01 to 26.17). In accordance With Note 3 to this Section, throughout the Nomenclature. the expression base metals means : iron and steel, copper, nickel, aluminum, lead, zInc, tin, tungsten (wolfram), molybdenum, tantalum, magnesium, cobalt. bismuth, cadmium, titanium, Zirconium, antimony, manganese, beryllium, chromium, germanium, vanadium, gallium. hafnium. indium, niobium, (columbium), rhenium and thallium. Each of the Chapters 72 10 76 and 78 to 81 covers particular unwro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proportions of the metals present for the purposes of this rule, it should be noted that: (1) All varieties of iron and steel are regarded as the same metal. (2) An alloy is regarded as being entirely composed of that metal as an alloy of which it is classified (e.g.. for these purposes, a part made of brass would be treated as if it were wholly of copper). (3) A cermet of heading 81.13 is regarded as single base metal As can be seen, the constituent materials, the combination with non-metals, etc. have to be seen to understand the classification. Therefore, even though the word TROPHY is specifically mentioned under 83062920, all trophies made of any material cannot be classified under this HSN and are to be classified as per the applicable provisions of the Customs Tariff Headings. Question 2 If different code is allocated to trophies assembled of different material, I would like to know if there is a combination of different materials and about 75% (value terms) is getting used of any one Raw Material, under which HSN should we make bill? We have to say that this again is a very general question. The interpretive rules governing the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lude a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule). presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However. when two or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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