TMI Blog2018 (10) TMI 1049X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and at 2.5% SGST as per Sl.No. 215 of Schedule I of G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017. Ruling:- Coir pith in its raw form whether in loose powder or compressed into blocks form without any addition of chemicals supplied by the applicant are taxable at 2.5% CGST as per Sl No 215 of Schedule 1 of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 as amended and at 2.5% SGST. - ORDER No. 15/AAR/2018 - - - Dated:- 27-9-2018 - MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER Note : Any appeal against the advance ruling order shall be filed before the Tamilnadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess of extraction of coir fibre from husk, generally about one-third of the husk is processed into as coir fibre, whereas two-thirds of the husk is generated as coir pith. The spongy material that binds the coir fibre in the husk is the coir pith. The composition and properties of coir pith vary depending on maturity of coconut, method of extraction and disposal, period from extracting to use and environmental factors. As there is no specific GST rate for the same, rate of tax and classification was sought by the applicant, the same may be provided. These goods were exempted in previous VAT and Excise Act. A picture of the same was enclosed with the application. 2.2 The Applicants have stated that as per the Customs Tariff Act 1975 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion shows the coir pith before such compression is in loose powder form. It is seen from the sale invoices that the applicant is indicating the goods as Coir Fibre Dust, Wet pith , Coir Pith Blocks Coir Pith Briquettes 4.1 The issue to be decided is the applicable GST Rate of the product of the applicant, Coir Pith . Contentions of the Applicant was examined with connected records and facts. To determine the applicable rate, the goods have to be correctly classified first. It is stated by the applicant that after extraction of fibre the non -fibrous material that binds the coconut fibre in the husk is the coir pith. They compress the same without adding any chemicals into blocks. From the manufacturing process and invoices submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017- C.T. (Rate) dated 28.06.2017 as amended and the exemptions are given vide Notification No. 02/2017-C.T. (Rate) dated 28.06.2017 as amended. The entries relevant to Coir Pith/ Chapter 5305 in both these notifications are given as under: Schedule 1 of Notification No. 01 /2017-C.T. (Rate) dated 28.06.2017:- Sl.No. Chapter Head Description Rate 215 5305 to 5308 All goods [other than coconut coir fibre] including yarn of flax, jute, other textile bast fibres, other vegetable textile fibres; paper yarn [including coir pith compost put up in unit container and bearing a brand name]* 2.5% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is different from coir fibre. Further, the coir pith supplied by the Applicant does not undergo composting process, which would alter its composition and cannot be called as coir pith compost. Hence coir pith in its raw form whether in loose powder or compressed into blocks form are taxable at 2.5% CGST as per Sl. No 215 of Schedule I of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and at 2.5% SGST as per Sl.No. 215 of Schedule I of G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017. 5. In view of the foregoing, we rule as under: RULING Coir pith in its raw form whether in loose powder or compressed into blocks form without any addition of chemicals supplied by the applicant are taxable at 2.5% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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