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2022 (2) TMI 992 - AAR - GSTClassification of goods - Glass-fibre Reinforced Gypsum Board which the Applicant is contemplating to manufacture would qualify as GRG board or not - new variant of gypsum board - Entry No. 92 of Schedule II of the Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017 - manufacture as per BIS standard IS-2095 is necessary' for all GRG board to be covered under the entry Serial No. 92 of Schedule II of Notification No. 1/ 2017- Central Tax (Rate) dated 28 June 2011 or not? HELD THAT:- Serial No. 92 of Schedule II of Notification No. 1/ 2017- Central Tax (Rate) dated 28 June 2017 provides specific rates for GRG board - an explanation (iii) to the said notification provides that "Tariff item", "sub-heading", "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Whether the supply to be made by the appellant would be covered under the term "Glass fiber Reinforced Gypsum Board (GRG)" or otherwise? - HELD THAT:- The main raw material of Gypsum Plaster board is "Gypsum" (more than 90%), which is mainly procured from mines and other raw material is paper and additives, whereas, the Glass Fibre Reinforced Gypsum Board is made-up of Phosphogypsum (more than 90%), which is a by product of phosphoric acid plant. Other raw material i.e. Glass fibre and additives is also used in the manufacturing of GRG Board - the raw materials which is used in gypsum board and GRG board are different. The applicant submitted that the proposed new variant of Gypsum Board is made-up of Gypsum, glass fibre and additives, the main raw material is Gypsum which is procured from the mines, whereas, GRG board is made up of Phosphogypsum, which is a by product of phosphoric acid plant therefore, the proposed new variant of Gypsum board to be manufactured by the applicant cannot be called as "Glass-fibre Reinforced Gypsum Board (GRG)" and cannot be classified in Serial No. 92 of Schedule II of Notification No. 1/2017- Central Tax (Rate) dated 28 June 2017 which provides specific rates for GRG board. Since, the intended product cannot be treated as GRG Board, the second question raised in respect of "BIS Standard IS 2095" is not relevant and not required answer. Thus, the new variant of gypsum board intended to be manufactured by the Applicant as per the specifications mentioned in Exhibit-2 could not be classified as Glass-fibre Reinforced Gypsum Board (GRG Board) and charged to GST at the rate of 12%.
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