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2023 (5) TMI 125 - AAR - GSTClassification of goods - Rate of SGST and CGST applicable - Aluminium composite penal/sheet - covered under HSN 3920 or HSN 7610 or HSN 7606? - HELD THAT:- As the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, applies to the interpretation of the Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017. Therefore the ACPs should be classified as if they consisted of the material or component which gives them their essential character. Therefore the impugned product, being plastic core laminated with aluminium sheets, are not covered under Tariff Heading 3920 as the properties of ACPs are not due to the polyethylene sandwiched between the aluminium sheets but because of the aluminium sheets which are bonded by the polyethylene. The ACPs are sandwich panels comprising two aluminium sheets bonded to a non-aluminium core. Therefore the ACPs should be classified as if they consisted of the material or component which gives them their essential character i.e. Aluminium in the present case and not the polythene core which binds the both Aluminium panels in the ACPs. The goods made by applicant is not a structure or part of a structure. The goods at the time of manufacture are in the form of sheets of various dimensions/measurements. As declared by the applicant, the same has to be further cut to different size and shape depending on the shape and size of the structure as the ACPs made are not ready to be used as it is, but the same requires cutting, routing, drilling; etc. process and only then they can be used in structure or fabrication or as the case may be. Thus, the goods made by him are not ready to use in the form in which they are made but needs further processing such as cutting, grooving/routing, bending etc. before being put to use. Therefore, it cannot be said that the impugned goods in the form in which it is presented are ‘prepared for use in structure’. Thus, the claim of the applicant to classify the said goods under CTH 7610 is not correct. As seen from the ACP product information, the respective weight of aluminium and plastic are in the ratio of maximum 2.75 kgs per m2 of aluminium to maximum 5.75 kgs per m2 of plastic. The ACPs are sandwich panels comprising two aluminium sheets bonded to a non-aluminium core. The combined thickness of the aluminium sheets in ACP manufactured by the applicant exceeds 0.2mm - As these sandwich panels attribute most of their characteristics to the two aluminium sheets, they have to be classified under the tariff heading 7606 as per Rule 3(b) of the General Rules for the interpretation of the Customs Import Tariff Schedule read with Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017. Thus, the subject product is covered under Heading 7606 of the GST Tariff and the rate of GST on the impugned product is 18% (9% each under CGST and SGST).
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