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TMI Blog2019 (10) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... th the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. A.M. Abdul Rahman Rowther & Co, manufactures of Chewing Tobacco, at No.4, Old Palace Building, Pudukottai 622001, are registered under GST Act with Registration No. 33AAHFA0811C1ZD. The applicant has sought advance ruling on the "Classification of the product "Chewing Tobacco" manufactured by them and applicability of Notification No.01 / 2017 -Compensation Cess-(Rate) The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tube" and "without lime tube". Further it has framed certain rules and issued notification from time to time in relevance to the section. The chemically flavoured tobacco such as Khaini, filter Khaini and zarda tobacco are considered as machine pack tobacco. The wet form of chewing tobacco and pack through manual operation were levied central excise duty at central excise tariff prevailed from time to time. So central excise duty for machine pack tobacco and manual pack were subjected to following tariff: a). Machine Pack Tobacco Products 1. Unmanufactured chewing tobacco (without lime tube) and unmanufactured chewing tobacco (with lime tube)-As per Central Excise Notification (N. T) 16/2010 amended from time to time. 2. Chewing tobac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cally flavoured dry form of tobacco. They are selling chewing tobacco in such form of pack in small retail packs and they are paying GST at the rate of 28%. They are aware of the fact there is no GST compensation cess as per present GST compensation cess notification for wet form of tobacco packed through manual operation. Though they are not liable to pay GST compensation cess as per the present compensation cess, the members of Tamil Nadu based chewing tobacco manufacturers Association has adopted the uniform policy in classifying the product of wet form of nattu tobacco whether manufactured or unmanufactured under HSN code of 24039990 applicable for "Other tobacco products" and paying compensation cess at the rate of 96%. 2.4 Central an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities in adopting our product under the umbrella of lime tube concept and classifying under the category of without lime tube product is highly arbitrary and against natural justice. 2.6 They are manufacturing tobacco products without adding any flavouring, essence and chemical substances. There is no clear cut definition for "manufactured tobacco" and "Unmanufactured tobacco" either in Central Excise Act and Rules. It is only in various judicial ruling, the differentiation of manufactured tobacco Vs. unmanufactured tobacco is quoted. There is no separate GST compensation levy determined for wet form of manual pack tobacco as per the GST compensation cess notification and hence our product shall be classified as nil rate of compensation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Preventive Unit, Thanjavur and a show Cause Notice No. 07/2019-GST dated 01.07.2019 dated 01. 07.2019 demanding to re-classify the chewing tobacco manufactured and cleared by the applicant under CTH 2403 9910 for the purposes of GST and demanding an amount of Rs. 5,61,498/- being the short payment of Compensation Cess for the period from July, 2017 to March, 2019 under Section 73(1) of CGST Act 2017 read-with provisions of Section 11 of Central goods and Services (Compensation to States) Act 2017 along with interest and penalty has been issued by the Assistant Commissioner of GST & Central Excise, Thanjavur and is pending adjudication. 5. We have carefully examined the submissions of the applicant and the comments furnished by the Jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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