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2019 (5) TMI 1398 - AAAR - GSTClassification of goods - rate of tax - Polypropylene Non-woven Bags - whether classified under Sub Heading 3923 29 or not - taxability at 18 % rate under Serial No. 108 of Schedule III of Notification no. 01/2017-C.T (Rate) dated 28-06-2017 under the CGST Act, 2017 & Notification No.1125-FT dated 28/06/2017 - challenge to AAR decision - HELD THAT:- The “P P Non-woven bags” manufactured by the Applicant from ‘Non-woven fabric’ under HSN 5603 falls under HSN 6305 33 00 and the applicable rate for the bags of value not exceeding ₹ 1000/ per piece is taxable at the rate of 5% under Serial No. 224 of Schedule-I of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 and Serial No. 224 of Schedule-I of Notification No 1125-FT dated 28/06/2017 under WBGST Act, 2017. In the instant case the polypropylene non-woven bags are manufactured from the non-woven polypropylene fabrics. Hence, the WBAAR erred in holding that ‘PP Non-woven Bags’, specifically made from non woven Polypropylene fabric are plastic goods to be classified under Sub Heading 3923 29. The decision of Advance Ruling is modified - application allowed in part.
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