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TMI Blog2019 (2) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... r and sewage treatment plant. It is seen that purified forms of calcium oxide and calcium hydroxide having industrial applications with high purity, which is the case in hand here, are covered under CTH 28259090 for calcium oxide and CTH 28259040 for calcium hydroxide. It is found from the manufacturing process and the requirement of the intended buyers, that the goods to be supplied is industrial grade Calcium Hydroxide of high purity of 86% and industrial grade Calcium oxide of high purity of 86% are rightly classifiable under CTH 28259040 and CTH 28259090 respectively taxable at 9% CGST and 9% SGST as per entry sl.No.38 of Schedule III of Notification no. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and G.O. (Ms) No. 62 dated 29.06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted the copy of Application in Form GST ARA - 001 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,0O0/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017. 2. The Applicant has stated that they manufacture Industrial Grade Quick Lime and Slacked Lime and the purity of Quick Lime is 86% Calcium Oxide (Cao) content and purity of Slacked Lime is 86% Calcium Hydroxide.; Normally Quick lime and slaked lime are classified under Chapter 2522 and the applicable GST Rate is 5%. CBEC Authority for Advance Rulings, in the Ruling No. AAR/02(CE)/2007 dated 30/08/2007 under paragraph 11.1. stated that,- 1. Quick Lime which is a less pure form of calcium oxide is used in building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, which in purity range between 70 to 90%, and sell to the Water Treatment Plants and Industries. They have also stated that their Products would fall under the Chapter 28. They subsequently submitted copies of Purchase Order and Invoices with Lab Reports of M/s. Kaycee Industrial Chemicals Private Limited, wherein the Applicant is the Managing Director, the Applicant is going to start sales of hydrated lime from Tuticorin Lime and Chemical Industries shortly. They also submitted Brief description of manufacturing process. 4.1 Documents submitted were verified. The manufacturing process involves they heat (Calcination) Lime Stone which is Calcium Carbonate (CaCo3) in the lime kiln; Limestone decomposes into Quick Lime which is Calcium O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classification of Quicklime having 86% Calcium oxide content and Slaked lime having 86% Calcium Hydroxide content and the applicable rate under GST. 5.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 -Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the Rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. The Customs Tariff is aligned with HSN. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k lime is used for building purposes such as white washing, whereas slaked lime is used in soil improvement and in plasters. However, purified calcium oxide and purified calcium hydroxide is excluded from 2822. Chapter 28 of Section VI of Customs Tariff covers Inorganic Chemicals, Organic or Inorganic Compounds of Precious Metals, Of Rare-Earth Metals, Of Radioactive Elements or of Isotopes. Chapter 2825 covers Hydrazine and Hydroxylamine and Their Inorganic Salts; Other Inorganic Bases, Other Metal Oxides, Hydroxides and Peroxides. CTH 28259040 covers Calcium Hydroxide and CTH 28259090 covers others. Note 1 to Chapter 28 states: NOTES: 1. except where the context otherwise requires, the headings of this Chapter apply on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed forms of calcium oxide and calcium hydroxide having industrial applications with high purity, which is the case in hand here, are covered under CTH 28259090 for calcium oxide and CTH 28259040 for calcium hydroxide. 5.4 Applying the above, to the case at hand, we find from the manufacturing process and the requirement of the intended buyers, that the goods to be supplied is industrial grade Calcium Hydroxide of high purity of 86% and industrial grade Calcium oxide of high purity of 86% are rightly classifiable under CTH 28259040 and CTH 28259090 respectively taxable at 9% CGST and 9% SGST as per entry sl.No.38 of Schedule III of Notification no. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and G.O. (Ms) No. 62 dated 29.06.2017 No. II ..... X X X X Extracts X X X X X X X X Extracts X X X X
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