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2021 (10) TMI 150 - APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARATClassification of goods - rate of GST - Plastic Mechanical Liquid Dispensers - classified under HSN 3926 or under HSN 8424 and 9616 - HELD THAT:- The product ‘Plastic mechanical liquid dispenser’ of the appellant is made of plastic and intended to be screwed/fitted on to the bottle/containers which are solely used for pumping/dispensing liquid or lotion from a bottle and serves for the depletion of the contents, viz. liquid, gel, cream etc. From the functions of the product, we find that they act as a cap, lid or closure of the bottle or container into which they are fitted, besides performing the function of pumping/dispensing liquid or lotion from a bottle and serving for the depletion of the contents contained therein i.e. liquid, gel, cream etc. Further, the appellant themselves have stated that the aforementioned product which they import from China are classified under the Tariff Heading 3923 only (caps and closures) - an imported item/product classified under Tariff Heading 3923 cannot have a distinct or different heading/classification when sold in the domestic market, especially when we are referring to the First Schedule to the Customs Tariff Act, 1975(51 of 1975) for arriving at the classification of the products in the GST regime. The goods are parts of general use as they can be fitted/screwed into bottles/containers of any make i.e. of plastic, glass, metal etc. Also, nowhere is it contended by the appellant, that their product (which are parts) can be used only in bottles of a particular make or type. Hence, it can be construed that these items/products of the appellant can be considered as ‘parts of general use’ i.e. parts which can be used in any type/make of bottles or containers. It, therefore, becomes apparently clear that ‘items/products made of plastic’ of the appellant, which are ‘parts of general use’, will not be covered under any heading of Chapter 84. Therefore, in view of clause(g) of Note 1 of Section XVI of the Customs Tariff Act, 1975, it can be concluded that the product ‘Plastic mechanical liquid dispenser’ of the appellant would not be covered under Heading 8424 of the Customs Tariff Act, 1975(51 of 1975). Rate of GST - HELD THAT:- The product ‘Plastic mechanical liquid dispenser’ of the appellant would be rightly classifiable under Heading 3923.50 of the Customs Tariff Act, 1975(51 of 1975) and would be liable to GST at the rate of 18%.
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