9911796707
TMI Blog2021 (9) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... used/ waste tyres, made of rubber are nothing but rubber and rubber goods not usable as such because of cutting up, wear or other reasons from which the subject goods are produced. Thus the impugned goods are squarely covered under the Heading 40.04 of the GST Tariff Act, 2017. It is clearly seen that Powders and granules obtained from waste, parings and scrap of rubber (other than hard rubber), in this case used tyres, are covered under Tariff Heading 4004 00 00 and attract 18% IGST or 9% each of CGST/SGST or UTGST - the subject product namely; crumb rubber/granules falls under Heading 4004 of the GST Tariff thus attracting GST @ 18%. - GST-ARA-70/2019-20/B-62 - - - Dated:- 22-9-2021 - SHRI. RAJIV MAGOO, AND SHRI. T.R. RAMNANI, MEMBER 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 respectively] by M/s. GREEN RUBBER CRUMB PRIVATE LIMITED, the applicant, seeking an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort of rubber tyre scrap including buffing powder for manufacturing of reclaim rubber. During presentation it was stated that they would be importing only buffing powder. Earlier in 2015 the applicant had been given permission for import of 1000 MT of used nylone tyre scrap, rubber scrap. The Ministry recommended import of 1500 MT of tyre buffing powder for use in making reclaim rubber. The Ministry also recommended site visit by CPCB. While considering this case the committee recalled that in the 68th meeting of the Expert Committee held on 26-04-2016 in a similar case of import of rubber powder, the committee had taken the view that the rubber powder may be considered similar to rubber crumbs or granules made from scrap tyre and may be considered as products rather than waste and as such no permission from the Ministry was required The committee deliberated on the issue again and made a distinction between buffing powder and crumb rubber / granules. Rubber crumbs or granules are made by processing (shredding, grinding) of used tyres and is thus a product obtain from waste. On the other hand tyre buffing powder is waste generated during the lyre buffing process and hence cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B. N. Kamath, Accountant, and Shri. Pratik Shaha, Accountant appeared, and requested for admission of the application. Jurisdictional Officer was absent. 4.2 The application was admitted and called for final e-hearing on 10.08.2021. The Authorized representatives of the applicant, Shri. B.N. Kamath, Account Manager was present. The Jurisdictional officer was absent. The Authorized representatives made oral and written submission. The applicant was asked to produce manufacturing process and invoices issued. 4.3 Heard the applicant. 05. DISCUSSIONS AND FINDINGS: 5.1 We have perused the documents on record, facts of the matter and submissions made by the applicant. The jurisdictional officer has neither appeared for the hearings nor has made any submissions in the matter. 5.2.1 The applicant during the course of the hearings submitted that they are involved in making crumb, rubber/granules from used tyres. According to the applicant, even if the crumb rubber/granules is manfactured from waste /used tyres it is a finished product and not a waste. Further, applicant has, submitted that, The Ministry of Environment, Forest Climate Change (MOEF), which is the recogni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioned therein is Used Tyre Crumb Grade B and the HSN Code mentioned in the said invoices is 4004. Thus the applicant also appears to have purchased the impugned product which would mean that the goods pertaining to these invoices have not been produced by the applicant from used/waste tyres. 5.6 Applicant, in Annexure A has submitted that MOEF has clarified that powder/ granules which is generated as a by-product during manufacture of a product is a waste and hence should be classified as 4004. However, when some powder or granule is made as a main product by processing any waste rubber it is considered as finished product under 4002. The applicant is referring to the observations made by the MOEF in the issue of M/s MSS Rubber and Reclaims Pvt. Ltd. Kerala (F. No. 5-1/2014-HSMD) at point 2.3.4 in Annexure A . It is mentioned therein that, Rubber crumbs or granules are made by processing (shredding, grinding) of used tyres and is thus a product obtain from waste. On the other hand lyre buffing powder is waste generated during the tyre buffing process and hence cannot be considered as rubber waste . It is nowhere mentioned that that powder/ granules which is generated as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f heading 40.02, in primary forms or in plates, sheets or strips. 5.8.4 Hence we are of the opinion that, the subject product is not covered under Heading 40.02 of the GST Tariff. 5.9.1 Taking into account, the submissions made by the applicant, we will now discuss whether the subject product is covered under Heading 40.04 of the GST Tariff. As per the explanatory notes, the relevant provisions of Heading 4004 are reproduced as under:- 40.04 .-- Waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained therefrom. The heading covers: - (1) Rubber waste, parings and scrap from the manufacture or working of unvulcanised or vulcanised rubber (other than hard rubber). (2) Goods of rubber (other than hard rubber) definitely not usable as such because of cutting-up, wear or other reasons. This category includes worn-out rubber tyres not suitable for retreading and scrap obtained from such worn-out rubber tyres, usually by the following processes (a) Cutting the tyre, with a special machine, as close as possible to the triangle head wires or the heel. (b) Splitting to remove the tread. (c) Cutting into pie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter Heading 4004. 5.13 We also find that the applicant has made an application which is very cryptic. They have submitted that their impugned product falls under HSN 4002 but other than making just a passing statement they have not brought anything on record to support their contention. 5.14 Finally, the relevant provision of the GST Tariff is reproduced as under:- Tariff Item Description of goods Unit CGST SGST/UTGST IGST 4004 00 00 Waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained therefrom Kgs 5% IGST/2.5% CGST /2.5% SGST or UTGST : 4004 00 00: Waste, parings and scrap of rubber (other than hard rubber) 18% I GST/9% CGST 19% SGST or UTGST : 4004 00 00: Powders and granules obtained from waste, parings and scrap of rubber (other than hard rubber) 2.5/9% 2.5/9% ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
