9911796707
TMI Blog2024 (1) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... process of mixing of guar slurry with mineral oil is simply a mixture or it emerges as new product. The applicant has not submitted the required details before AAR. The ruling can not be pronounced unless the proper chemical composition and nature of product is not submitted. The subject application for advance ruling made by the applicant is not maintainable and hereby rejected under the provisions of the GST Act, 2017. - UMESH KUMAR GARG AND MAHESH KUMAR GOWLA, MEMBER Present for the Applicant : Shri Arun Soni, CA, Shri Keshav Gupta,CA Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... powder which contains more than 50% mineral oil and has application in oil and gas industries, the applicant is of the view that such product shall be classified under chapter 27 of the first schedule of customs tariff act 1975 and accordingly the GST rate shall be applicable. C. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:- 1. what should be the classification and applicable tax rate on the supply of liquid suspension of guar gum powder (suspended in mineral oil), which is commonly known as guar gum slurry manufactured by the applicant under notification No. 1/2017-CT dated 28.06.2017 as amended. D. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 10.01.2023. Shri Keshav Gupta, CA, Authorized Representative appeared for personal hearing. He reiterated the submission already made in written submission. During P.H. he was asked the certification of composition of their product in support of submission of composition of product made by them. Sh. Kishan Gupta submitted that a certified formula (composition) from a recognized lab in respect of their product will be submitted with in fifteen days. He requested for early disposal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders water viscous for suspending and carrying prop pant deep into well fractures. Its properties reduce friction and increase water pressure. Comments on the application under AAR The percentages of the components should add up to 100%, so the selection of exact amounts of Guar gum powder (mentioned 46s ) and Mineral Oil must fall within a set of range and could only be specific by practicing this invention on a larger time frame. It appears that the process undertaken by the appellant, by adding various additives to change its viscosity and solubility as per the requirement of the user. Thus, there might be a change of character, use and identity of the goods but that doesn't classify the new product to be primarily a mineral oil-based product. Here it is also a question that there is any government authorized Chemical Laboratory/Examiner has verified the resultant concentration of the new product and the taxpayer interpretation that new product to be primarily a mineral oil-based product? In view of the above, it is submitted that Chapter 13 of HSN included the goods, modified by chemical treatment in order to improve their properties (viscosity, solubility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Start the stirrer and 1 Kg Clayton AF (HSN 38249900) to the vertex and stirring for 15 minutes. 3. Keep the stirrer running and add 250 ml BYK GO 8720(HSN38249900) to the vortex and stir for 15 minutes. 4. Lastly, add 49 Kg guar gum hum powder (HSN 130232) and continue stirring for another 15 minutes. The other steps are continued till the desired quantity for shipment is achieved. The final Product manufactured using above process has following ingredients- guar gum powder 46 % (HSN 130232), mineral oil 51%, (HSN 271019), Clayton AF (HSN 38249900),2.5%, BYK GO 8720, 0.5% (HSN 38249900). Once product is ready it is poured in to plastic IBC tank of 1000 liter capacity and shipped to final buyer. 4) Under GST, the applicable rates of CGST are notified by Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 and in terms of explanation (iii) and (iv) to the said Notification, (iii) Tariff item , 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 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es; mineral waxes only and the product as claimed by applicant should not fall under Chapter 27 of HSN . 6) Further The jurisdictional officer has observed that the processed material 'Guar Gum Slurry 'which is a liquid suspension of guar gum powder (suspended in mineral oil) must also fall under the Chapter 13 of the First Schedule to Customs Tariff Act, 1975 and accordingly the GST rate shall be applicable. We observe that without a proper composition report of product, it is not to be ascertain that product will fall under CHAPTER 13 as this chapter denotes about the Lac; gums, resins and other vegetable saps and extracts and Guar Gum Slurry is not predominating the product as applicant claimed that mineral oil is used more than 50%. 6.1) we would also refer the chapter 34 for reference here which is as under-CHAPTER 34 Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, dental waxes and dental preparations with a basis of plaster NOTES : 1. This Chapter does not cover: *(a) edible mixtures or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
