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2019 (5) TMI 1037 - AAR - GSTClassification of goods - rate of tax - Polypropylene Mat which are plaited using Polypropylene Straw - Whether HSN Code for Polypropylene Mat which are plaited using Polypropylene Straw falls under Chapter Heading 4601 or 3902? - HELD THAT:- In the case at hand as per the manufacturing process furnished, it is seen that pellets on application of heat & air on an extruder machine are converted into the polypropylene tubes(straws)which is used as plaiting material. These are then woven or bound together in sheet form by placing them parallel to each other. After weaving the mats are cut into market size requirement. The subject goods are not classifiable under the chapter 39 as per Chapter Note 2 to chapter 39. Further, they are covered under chapter 46 and more specifically under CTH 46019900. Whether Polypropylene Mats fall under Chapter 39 or Chapter 46 of Central Excise Tariff is considered by the CBEC in Circular F.No. 93/24/87-CX-3 dated 16/06/1987? - HELD THAT:- The Central Excise Tariff was aligned with Customs Tariff after the enactment of the Central Excise Tariff Act 1985 which are in alignment with the HSN. Further, in the case at hand the process of manufacture of the Propylene Mat is similar to that considered in the Circular. Therefore we hold that the ‘Polypropylene Mats’ supplied by the applicant is classifiable under CTH 46019900 - It is pertinent to note that the classification of the ‘Propylene Mats’ under CTH 4601 is in line with the classification in the Drawback Schedule in respect of ‘Polypropylene Mats’. Applicable rate of tax - HELD THAT:- The product in hand is classified under CTH 4601 - CTH 4601 covers plaits and similar products, whether or not being finished articles but made of vegetable materials such as of Bamboo, of rattan, of Other Vegetable materials. In the case at hand, the mats are made of Polypropylene, which are definitely not of vegetable materials and therefore are not covered under SI.No. 103 of Schedule - II above. As the Polypropylene mats are not specified elsewhere in the rate schedules, the applicable rate CGST @ 9% as per Sl.No. 453 of Schedule - III of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 and SGST @ 9% as per Sl.No. 453 of Schedule -III of Notification No. vide G.O. (Ms) No. 62 dated 29.06.2017. The applicable tax rate from 1.7.2017 to 24.1.2018 is 9% CGST as per Sl.No. 453 of Schedule -III of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 as amended and 9% SGST as per SI.No. 453 of Schedule -III of Notification No. II (2)/CTR/532 (d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. The rate from 25.01.2018 to 31.12.2018 is 2.5% CGST as per Sl No 198A of Schedule I of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 as amended and 2.5% SGST as per SI No 198A of Schedule I of Notification No. II (2)/CTR/532 (d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. The rate from 01.1.2019 onwards is 2.5% CGST as per SI.No.198AA of Schedule I of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl No 198AA of Schedule 1 of Notification No. II (2)/CTR/532 (d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended.
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