TMI Blog2019 (2) TMI 1525X X X X Extracts X X X X X X X X Extracts X X X X ..... levy under the Central Excise Act and not under the CGST/ OCST/IGST Act. The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. NCCD being not a levy under the OGST/CGST Act, it is not within the competence and mandates of the Authority of Advance Ruling constituted u/s 96 of the OGST Act to give a ruling on the liability of the applicant to pay NCCD. - 06/Odisha-AAR/2018-19 - - - Dated:- 5-2-2019 - SRI ANAND SATPATHY, AND SRI NILANJAN PAN, IRS, MEMBER Present for the Applicant -RAVI SHANKAR SISTLA, CA Subject: GST Act, 2017-Advance Ruling U/s 98 on Classification of GUDAKHU 1.0 M/s. Prabhat Gudakhu Factory, Jeypore, Koraput, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s covered under the classification code 2403 11 10. The applicant substantiated such view as below. 2.1. The Hon ble Odisha High Court has held in the case of Shamsuddln Akbar Khan and Co. as reported in 35 STC 179 = 1974 (7) TMI 114 - ORISSA HIGH COURT that gudakhu is a kind of manufactured tobacco like cigarettes, cigars, cheroots, biri, chewing tobacco, and snuff and was very much akin to hookah tobacco . Placing reliance on the aforesaid observations of the Hon ble Court the applicant is of the view that Gudakhu should be classified under the HSN Code 2403 11 10 and having been specifically covered under this code, the same cannot be classified under the residual code of 2403 99 90 (All other products), 2.2 The residual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Odisha reported in 35 STC 179 = 1974 (7) TMI 114 - ORISSA HIGH COURT in the case of Shamsuddin Akbar Khan and Co . 4.0 We have considered the submissions made by the applicant in its application for advance ruling as well as the submissions made by the representative during personal hearing. We also considered the question issues on which advance ruling is sought for by the applicant, relevant facts having bearing on the question / issue raised and the Applicant s understanding/interpretation of law in respect of the issue 4.1 In the instant application, Ruling has been sought for (i) appropriate classification of Gudakhu under GST Tariff heading and (ii) Determination of the liability to pay NCCD (National Calamity Conti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f-item heading is reproduced below: 2403 Other manufactured tobacco and manufactured tobacco substitutes; Homogenized or Reconstituted tobacco; tobacco. extracts and essences -Smoking tobacco, whether or not containing tobacco substitute in any proportion: 2403 11 --Water pipe tobacco specified in Sub )heading Note to this chapter: 2403 11 10 ---Hookah or Gudakhu Tobacco -Other 2403 99 --0ther 2403 99 10 - Chewing tobacco 2403 99 20 - Preparations containing chewing tobacco 2403 99 30 - Zarda scented tobacco 2403 99 40 - Snuff 2403 99 50 - Preparation containing snuff 2403 99 60 - Tobacco extracts and essence 2403 99 70 - Cut tobacco 2403 99 90 --Other 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant is engaged in the manufacture of gudakhu in paste form only which is used only as a tooth paste and never used for smoking in a water pipe. As a result, it can never be classified under tariff sub-heading 2403 11. 4.5 As per the scheme of classification, tariff sub-heading 2403 99 is a residual sub-heading under which all forms of chewing tobacco and other forms of tobacco not specified under other sub-headings of Chapter heading 2403 are classified. The said sub-heading is not just confined to chewing tobacco only such as khaini, gutkha and zarda etc. it also includes cut tobacco, tobacco extracts and snuffs which do not belong to the family of chewing tobacco. The sub-heading which reads as 2403 99 - other bears the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability to pay NCCD (National Calamity Contingency Duty) , it is clarified that the aforesaid duty is a levy under the Central Excise Act and not under the CGST/ OCST/IGST Act. The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. NCCD being not a levy under the OGST/CGST Act, it is not within the competence and mandates of the Authority of Advance Ruling constituted u/s 96 of the OGST Act to give a ruling on the liability of the applicant to pay NCCD. RULING In view of the foregoing discussion, we pass the following: Gudakhu manufactured by the Applicant, be classified under GST Tariff Heading 2403 99 90 . The applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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