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2023 (7) TMI 189 - AUTHORITY FOR ADVANCE RULING, GUJARAT
Classification of goods - Kandi Rave [tobacco waste] - to be classified as unmanufactured tobacco without lime tube or not? - HELD THAT:- HSN notes for tariff item 2401, reproduced supra, covers unmanufactured tobacco in the form of whole plants/leaves in natural state, cured or fermented leaves, whole, stemmed/stripped, trimmed/semi trimmed broken/cut, blended cased with a liquid of appropriate composition mainly to prevent drying and to preserve the flavour. It also covers tobacco refuse eg waste resulting from the manipulation of tobacco leaves, or from the manufacture of tobacco products [stalks, stems, midribs, trimmings, dust, etc). Though the applicant has undertaken the process of crushing tobacco refuse and thereafter mixing it with natural clay & water, in terms of the HSN notes, it still remains an unmanufactured tobacco - This is more so because even in terms of section 2(72) of the CGST Act, 2017, which defines manufacture, since no new product emerges post the crushing of tobacco refuse & mixing it with natural clay & water, we find it appropriate that the product is classifiable under CTH 2401 as ‘unmanufactured tobacco; tobacco refuse’ - It is held that the supply of applicant of 'kandi rave’ is classifiable under 24013000.
The applicant has not disclosed the fact that as to whether they are using brand name for their product. The applicant was asked to provide additional submissions on the issue. The applicant, vide his additional submission received on 10.5.2023, has informed the they are not affixing any name or label on the packing, in which the packed goods are sold to their customers in 30-35 kgs bags - The photographs adduced by the applicant depicts that the goods are being sold without any brand name, labelling etc. In view of the foregoing, since the applicant proposes to supply/supplies the said kandi rave to their customers in 30-35 kg bags, without any brand name, labeling, etc, it is held that the applicant would be/is liable to pay GST 28% [14 % CGST and 14 % SGST] in terms of notification No. 1/2017-CT(Rate), Sr. No. 13, Schedule IV.