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TMI Blog2019 (4) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... classified as parts or accessories of agricultural machinery. The subject goods are rightly classifiable under CTH 39269099 as articles of plastics not elsewhere specified. Applicability of the exemption under Notification No. 2/2017 - Held that:- The exemption stipulated therein applies to goods classifiable under CTH 8201 only. The product in hand is not classified under CTH 8201 and therefore the exemption is not available to the product in hand. The product in hand being classified under CTH 3926, is covered by entry at SL No. 111 of Schedule III of Notification No 01/2017-C.T. (Rate) dated 28.06.2017 as amended and SL No 111 of Schedule III of G.O. (Ms) No. 62 dated 29.06.2017 no. II (2)/CTR/532(d-4) / 2017, which covers Other articles of plastics and articles of other materials of headings 3901 to 3914 [other than bangles of plastic, plastic beads and feeding bottles] and is taxable @ 9% CGST and 9% SGST. Admissibility of Input Tax Credit of tax paid - Held that:- The applicant has not put forth any specifics requiring a ruling. However, having held that the supply of 'Agricultural Seedling Trays', are taxable the input tax credit is available subject to fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stries and 10% in domestic applications. Mainly they are producing Agricultural seedling Trays of dimension 600mrnX300mmX30mm. These trays are solely used for raising paddy corps from the seed stage to crop planting stage for the first fifteen days. This 15 days grown crops is taken for planting through the Transplanter Machine, where ever required by the farmer. This type of process gives improvement and increase in the productivity with less space. Due to the consistent planting in equal distance gives the more productivity in less time. These Trays are only used for. 2.1 Under TNVAT, the Agricultural Seedling Trays were exempted as 'Agricultural Implements' as per Advance Ruling obtained by M/s. Saro Enterprises, who manufactures similar seedling trays. Under GST regime, the applicant state that the goods are agricultural implements under Chapter 8201 which is exempted as per SI.No. 137 of Notification No 2/2017-Central Tax dt 28.06.2017 as amended. 3. The Authorized Representative of the Applicant was heard in the matter. They submitted that the items are made of polypropylene material which is used as seedling trays for uniform planting of paddy. They ensure fast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 201. Chapter 82 falls under Section XV of Customs Tariff which covers Base Metals an articles of Base Metals . Section Note 3 states: 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, cadmium, titanium, zirconium, antimony, manganese, beryllium, chromium, germanium, vanadium, gallium, hafnium, indium, niobium (columbium), rhenium and thallium. The chapter notes for chapter 82 are as follows: 1. Apart from blow lamps, portable forges, grinding wheels with frameworks, manicure or pedicure sets, and goods of heading No.82.09, this chapter covers only articles with a blade, working edge, working surface or other working part of (a) Base Metal; (b) Metal carbides or cermets; (c) Precious or semi-precious stones (natural, synthetic or reconstructed) on a support of base metal, metal carbide or cermet; or (d) Abrasive materials on a support of base metal, provided that the articles have cutting teeth, flutes, grooves, or the like, of base metal, which retain their identity and function after the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs in an organized, labour-saving manner so that the seedling mats grown can be fed into the machines or planted as such by hand. However, the tray itself is not a part of any machine or used with any machine or electronically driven nor is it an accessory of any agricultural machinery. Rice planting machinery do not need these seedling trays to function and hence cannot be classified as parts or accessories of agricultural machinery. 5.4 The goods are trays made of polypropylene of certain dimensions. Chapter 39 covers Plastics and articles thereof Chapter 3926 covers Other articles of plastics and articles of other materials of headings 3901 to 3914 Tariff Heading 39269099 covers other articles not specified HSN Explanatory Notes to Chapter heading 3926 states This heading covers articles, not elsewhere specified or included of plastics. Accordingly, the subject goods are rightly classifiable under CTH 39269099 as articles of plastics not elsewhere specified. 5.5 It is further pertinent to note that in a similar issue in respect of M/ s. Saro Enterprises, the Agricultural seedling Trays were ruled to fall under Chapter 39269909 of the Customs Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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