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2019 (4) TMI 306 - AAR - GSTClassification of goods - Plastic Seedling tray - part of agriculture machinery or not - Classified under Chapter 8201 or otherwise? - applicability of N/N. 2/2017-Central Tax dt 28.06.2017 as amended - input tax credit of tax paid or deemed to have been paid - liability of GST - Held that:- The product in question is Seedling Trays made of fully of plastic i.e. polypropylene and hence it cannot be classified under chapter 82 or anywhere under Section XV and accordingly it cannot be classified under 8201 as Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry - 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. 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 fulfilment of all the conditions of Section 16 and Section 17 of CGST /TNGST Act, 2017 and the relevant rules governing the admissibility of credit of tax paid on Inputs.
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