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TMI Blog2020 (2) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ther classification will depend on the individual properties of the product. NFC Board manufactured by the applicant with main content as Rice husk, will more appropriately be classified under CTH 441193, the applicable rate of GST is taken up for consideration. The rate of CGST is notified vide Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended in respect of goods and that of SGST is notified vide Notification No. vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. As per Sl.No 92 of Schedule-II of the Notifications, specifies the following goods falling under Chapter 44 or any other Chapter are subject to 6% CGST. Rice Husk Board or fibre board manufactured from agricultural crop residues, irrespective of the Chapter under which the same are classified, are subjected to CGST @ 6% and 6 % SGST. - TN/54/AAR/2019 - - - Dated:- 23-12-2019 - MS. MANASA GANGOTRI KATA, IRS, AND THIRU KURINJISELVAAN V.S., M.SC.(AGRI.), M.B.A., MEMBER Note: Any appeal against this Advance Ruling order shall lie before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai as under Sub-section (1) of CGST Act / TNGST Act 2017, within 30 days from the date on the ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Carbonate (Lime powder) 14.00 Recycling waste 18.00 PVC 26.00 Processing aids such as thermos-coupling agents, etc. 8.00 Lubricant 4.00 TOTAL 100.00 Subsequently, the compound is mixed with PVC resin and extruded through a screw-barrel and mould at a preset temperature and pressure. The compound melts under high temperature in the screw-barrel and is released through the mould and is transferred to a thickness calibration unit. Later chilled water passes through the calibration unit in order to settle the thickness and to cool the board. The width of the sheets is maintained according to the width of the mould, which is generally 1350mm. Whereas, the thickness of such sheets is controlled with the flow and opening of the mould the sheet comes out as a continuous process and travels upto a pulling unit called haul off. In order to maintain the width of 1220 mm i.e 4 feet, the automatic system fitted with the machine runs continuou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther fragments constituting the particle boards of this heading are usually recognizable at the edges of the board with the naked eye. However, in some cases, microscopic examination may be required to distinguish the particles and fragments from the ligno-cellulosic fibres characterizing the fibreboard of heading 44.1 1. The particle boards are usually sanded. Moreover, they may be impregnated with one or more substances not essential for the agglomeration of their constituent materials but which confer on the board an additional property, e.g., impermeability to water, resistance to rot, insect attack, fire or the spread of flame, chemical agencies or electricity, greater density. In the last instance, the impregnating substances attain an important proportion. Oriented strand board, which is made from layers of thin strands Bf wood which are at least twice as long as they are wide. These strands are mixed with binders (usually waterproof) such as isocyanate orphenolic resins, interleaved together and laid down in layers forming a thick mat in which the strands are generally oriented lengthwise in the surface layers and generally cross oriented or laid down randomly in the inner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said category and would come under the erstwhile classification under Heading 44.06, which is presently classified under heading 44.10. The applicant has further stated that, as per the general explanation note to HSN under Chapter 44, any panel which consists of layers of wood and plastic can be classified under the said Chapter, provided if the later has a subsidiary insulation function in the making of the final product. Thus, the sole purpose of using PVC is to bind the rice husk powder, fillers and other processing additives in order to get the desired output i.e the rice husk board. PVC has a very minimal dominance in the making of the rice husk board. It is evident from manufacturing process that the major proportion of raw material used is rice husk as natural fibre along with calcium carbonate. The other materials such as recycled material processing addictive and PVC resin are comparatively less in proportion as compared to the natural fibre. The PVC resin, acts as a binding agent of all the other raw materials used. Thus, the major proportion of raw material used for manufacturing the rice husk board is the natural fibre i.e., the powdered rice husk. Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Stearic Acid Tariff a 921(HSN 3823)), Cellcom and WPC-3000E (HSN 38099390), NC Blowing Agent AKD-7800(HSN 38099390), Acrylic Processing Aid Type HL 175S(HSN 39069090), Acrylic Processing Aid Type HL-90(HSN 39069090) and sale invoices with the description Indowud NFC Board (HSN 44109090) on 10.10.2019. The sample of Indowud - A Zero Wood NFC board produced during the hearing shows that it is similar to a board made of wood. 3.4 It is seen in the product brochure that the product is Indowud NFC Boards which is a Natural Fibre Composite made of natural fibres, mineral and polymer compounds, other filers and additives. It is claimed to be a better and eco friendly alternative to wood, plywood, and MDF/HDF. It is flame resistant, termite proof, waterproof. Its application include as a substitute to wood based boards in wall paneling, Outdoor furniture, Garden, Pool and Seaside furniture, Kitchen and Dining areas, CNC routing, Thermoforming, Cabinets and wardrobes, Partitions, Fencing, Signage. The brochure further states that the natural fibres are procured from polymers and natural fibres are mixed with minerals, coupling agent, heat stabilizers and necessary additives under m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd: 44101110 --- Plain particle boards 44101120 --- Insulation board and hardboard 44101130 --- Veneered particle board, not having decorative veneers on any face 44101190 --- Others 441012 -- Oriented strand board (OSB): 44101210 --- Unworked or not further worked than sanded 44101290 --- Other 44101900 -- Other 441090 - Other: 44109010 --- Plain particle board 44109020 --- Insulation board and hard board 44109030 --- Veneered particle board, not having decorative veneers on any face ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esin is used as a binding agent. If the rice husk was directly added with binders etc without extracting the fibres, the product would be a particle board, which is not the case here. 5.4 We examine the other possible classification for the product. CTH 44 11 4411 FIBRE BOARD OF WOOD OR OTHER LIGNEOUS MATERIALS, WHETHER OR NOT BONDED WITH RESINS OR OTHER ORGANIC SUBSTANCES - Medium density fibre board (MDF): 44111200 -- Of a thickness not exceeding 5mm 44111300 -- Of a thickness exceeding 5mm but not exceeding 9mm 44111400 -- Of a thickness exceeding 9mm - Other: 441192 -- Of a density exceeding 0.8 gm/cm3 : --- Not mechanically worked or surface covered: 44119211 ---- Hardboard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xceeding 9 mm - Other : 4411.92 - - Of a density exceeding 0.8 g/cm3 4411.93 - - Of a density exceeding 0.5 g/cm3 but not exceeding 0.8 g/cm 3 4411.94 - - Of a density not exceeding 0.5 g/cm3 Fibreboard is most often manufactured from wood chips which have been mechanically defibred (defibrated) or steam exploded or from other defibred ligno-cellulosic material (obtained e.g., from bagasse or bamboo). The fibres making up the board are recognisable under microscopic examination. They are bonded together in the board by felting and by their own adhesive properties, generally deriving from their lignin content. Additional resins or other organic bond me substances may be used to agglomerate the fibres. Impregnating or other agents may also be added during or after manufacture of the board to give an extra property, e.g. impermeability to water or resistance to rot, insect attack, fire or the spread of flame. Fibreboard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.09, curved, corrugated, perforated, cut or formed to shapes other than square or rectangular and whether or not they have been worked at the surface, the edge or the end, or coated or covered (e.g., with textile fabric, plastics, paint, paper or metal) or submitted to any other operation, provided these operations do not thereby give such products the essential character of articles of other headings. From the above, it is seen that Fibreboard manufactured by bonding fibres extracted from wood chips or other lingo-cellulose material. They are bonded together by adding thermosetting resins and find application such as furniture, interior decoration and in building are classified under this heading. The product in hand is a Natural Fibre Composite Board with density of ranging from 0.65 - 0.8g/Cm3(as given in the brochure) and finds application in furniture, interior decoration, building, etc. In this case as per the manufacturing process, fibres are extracted from the rice husk and then mixed with lime powder (calcium carbonate), processing additives such as lubricants, foaming agents, foam regulators, heat stabilizers, etc. PVC resin is used as a binding agent. Hence, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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