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2021 (9) TMI 1067 - AAR - GSTClassification of goods - HSN Code - rate of GST - Crumb rubber/granule - HELD THAT:- Headings 40.03 and 40.04 covers reclaimed rubber in primary forms or in plates, sheets or strip, and waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained therefrom. Further, the Notes to Heading 40.04 states that “Goods of rubber (other than hard rubber) definitely not usable as such because of cutting-up, wear or other reasons” includes worn-out rubber tyres not suitable for retreading and scrap obtained from such worn-out rubber tyres. Also notes to Heading 40.04 also states that Powders and granules, obtained from such goods of such rubber (other than hard rubber) definitely not usable as such because of cutting-up, wear or other reasons” which includes worn-out rubber tyres, are covered under Heading 40.04. This applicant is producing crumb rubber/granules from used/waste tyres and has submitted during the course of the hearing that, the waste/used tyres are not usable because they are worn out tyres due to wear and tear - the 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%.
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