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TMI Blog2021 (8) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in the corresponding entry in column (2) of the said notification. Thus the goods covered under the description of particular entry number of a particular schedule, that fall under the corresponding chapter heading/sub-heading only attract the rate specified under the respective schedule - thus, the goods must be falling under HSN 4802 and must tally with the description specified therein to attract the central tax of 6% specified in the respective schedule II. It is clearly evident from the description that GST rate of 12% is applicable only to Uncoated paper and paperboard used for writing, printing or other graphic purposes; non perforated punch-cards and punch tape paper, in rolls or rectangular/square sheets, of any size; hand- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the supply of tissue papers by the applicant is covered under Serial No. 112 of Schedule II of the Rate Notification No. 01/2017 Central Tax (R) and therefore, is leviable to GST at the rate of 12%? 3. Admissibility of the application: The question is about classification of their product falling under classification of any goods or services or both; and hence is admissible under Section 97(2)(a) of the CGST Act 2017. 4. The applicant furnishes the following facts relevant to the issue: 4.1 The Applicant states that they are engaged in the manufacture of tissue paper in various categories like facial tissues, kitchen towel, toilet roll napkins. These tissue papers are manufactured from waste paper, cup stock, tissue b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cup stock waste, silicon coated paper and chemicals for manufacture of tissue papers. 4.4. The applicant stated that during the pre-GST period, they were discharging central excise duty on the goods falling under the Central Excise Tariff Sub Heading (CETSH) 4818 by availing benefit of concessional rate of duty vide Sl.No.163 of Notification No.12/2012 CE dated 17-03-2012 and Sl.No.36 of Notification No. 18/2012 CE dated 17-03-2012 which read as under: Notification No.12/2012 CE dated 17-03-2012 SI.No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate Condition No. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 145 of schedule III to the Notification No. 1 /2017-Central Tax (Rate) date 28-06-2017 whose description reads as under: HSN 4803: Sl.No.145 Schedule No: III Description : Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surface-coloured, surface-decorated or printed, in rolls or sheets. Accordingly, the applicant has been discharging GST @ 18% [CGST-9% and SGST-9%] on their products. 5. Applicant's Interpretation of Law: 5.1 The applicant contends that the Notification No. 1/2017-Central Tax (Rate) date 28-06-2017, under entry number 112 of Sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. The Applicant is engaged in the manufacture of tissue paper in various categories like facial tissues, kitchen towel, toilet roll napkins. The applicant sought advance ruling as to whether the supply of tissue papers by them is covered under Serial No. 112 of Schedule II of the Rate Notification No.01/2017 Central Tax (R) and therefore, is leviable to GST at the rate of 12% or not. 9. Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 notifies the rate of central tax in terms of schedules appended to the notification, that shall be levied on intra-state supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said schedules, falling under the tariff item, sub-heading, headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product being tissue paper not containing fibres obtained by a mechanical or chemi-mechanical process or of which not more than 10% by weight of the total fibre content consists of such fibres is covered under HSN 48025450 i.e. 4802 and hence the GST rate @ 12% is applicable. We note that as per explanatory notes of Customs Tariff Heading issued by WCO in 2017, the scope of the chapter is defined as under: This Chapter covers : (I) Paper, paperboard, cellulose wadding and webs of cellulose fibres, of all kinds, in rolls or sheets : (A) Heading 48.01, 48.02, 48.04 and 48.05 relate to machine-made uncoated papers subjected, if required to sizing and simple finishing processes (e.g., calendering, glazing). Heading 48.02 al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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