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2021 (12) TMI 112 - AAR - GSTDetermination of the liability to pay Tax - Sales of Aorom Herbal Smokes (regular flavour) - relevant HSN Code - rate of tax - inter-state as well as intra-state supply - HELD THAT:- The subject cigarettes have specific entry at HSN 24029010 as Cigarettes of tobacco substitutes. We hold that Classification of goods under GST is based on HSN. The Customs Tariff is based on HSN. The general Interpretative Rules are to be sequentially followed as the way to classify the goods. We are to classify within the confines of law and procedure as laid down in GST scheme of law and procedure. The Section notes of Custom Tariff are part and parcel of the Custom Tariff Act, 1975 which is to say, part and parcel of law enacted by the Parliament and therefore, we are obliged to follow the classification based on Section Notes as per law. As per Rule 1 of the General Rules for the Interpretation of CTA, 1975, for legal purposes, classification shall be determined according to the terms of the headings and any Section or Chapter Notes. The subject goods find their specific description as ‘cigarettes of tobacco substitutes’ at HSN 20029010. The Explanatory notes to HSN have guidance value to classify goods. The Explanatory Notes [ page IV-24-I] to Chapter 24 specifies that this Chapter covers not only unmanufactured and manufactured tobacco but also manufactured tobacco substitutes which do not contain tobacco. The said goods are leviable to: 1. 28% IGST on inter state supply along with Compensation Cess of ₹ 4006 per thousand. 2. 14% CGST + 14% SGST on intra state supply along with Compensation Cess of ₹ 4006 per thousand.
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