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2021 (9) TMI 1288 - AAAR - GSTClassification of goods - HSN Code - rate of tax - Zip Roll (i.e. Slide Fasteners) - applicability of N/N. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended by the N/N. 18/2018-Central Tax (Rate) dated 26.07.2018 - HELD THAT:- As per the manufacturing process of ‘Zip Rolls’ described by the appellant, the polyester tape and polyester cord with teeth are stitched together on the stitching machine with one inner edge of each being fitted with scoops of plastics; that the two narrow strips of textile materials with one inner edge fitted with scoops of plastics are interlocked on the machine to form the ‘Zipper Rolls’ - It is evident from the manufacturing process and the description of the product ‘Zip Rolls’ given by the appellant that ‘Zip Rolls’ being supplied by the appellant conforms to the description ‘narrow strips of any length mounted with chain scoops’. Therefore, in our considered view, the said product ‘Zip Rolls’ merit classification under Tariff Item 9607 20 00 of the CTA, 1975 as ‘Parts’ of Slide Fasteners. The product “Zip Roll” is classifiable under Tariff Item 9607 20 00 of the CTA, 1975 as ‘Parts’ of Slide Fasteners in terms of the heading / sub - headings. As per Rule 1 of the General Rules of Interpretation of the CTA, 1975, classification is required to be determined according to the terms of the headings and any relative Section or Chapter Notes - Rule 2(a) of the General Rules of Interpretation is not applicable for classification of ‘Zip Rolls’ in the present case. Thus, ‘Zip Rolls’ being supplied by the appellant are appropriately classifiable under Tariff Item 9607 20 00 as ‘Parts’ of Slide Fasteners. Rate of GST on Zip Rolls - HELD THAT:- ‘Zip Rolls’ being supplied by the appellant were covered under entry 446 of Schedule - III of the Notifications from 01.07.2017 to 30.09.2019, attracting Goods and Services Tax of 18%. However, with effect from 01.10.2019, the said product ‘Zip Rolls’ being supplied by the appellant is covered under entry 231B of Schedule - II of the Notifications and is attracting Goods and Services Tax of 12% - The description of goods at S. No. 231B of Schedule - II of Notifications during 26.07.2018 to 30.09.2019 was “slide fasteners”, unlike the description of goods “Fasteners and poly wadding materials” in the Notification issued under the Customs Act, 1962. Thus, Zip Rolls is classifiable under Tariff Item 9607 20 00 - Zip Rolls was liable to Goods and Services Tax @ 18% during 01.07.2017 to 30.09.2019 under Sr. No. 446 of Schedule - III of Notification No. 1/2017-Central Tax (Rate) and Notification No. 1/2017-State Tax (Rate), and @ 12% from 01.10.2019 onwards under Sr. No. 231B of Schedule - II of N/N. 1/2017-Central Tax (Rate) and Notification No. 1/2017-State Tax (Rate).
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