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TMI Blog2020 (4) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... as "the applicant"] and is planning to manufacture bagasse-based particleboard. The basic raw materials used for manufacturing of bagassebased particleboard are "Bagasse" & "Rasins". Due to shortage of basic raw material "Bagasse" in the market, the applicant sometime mixes some amount of wood particles, which may extent to maximum 25% of the total particle-board composition. (ii) The rate of GST to be levied under Goods and Services Tax Act, 2017 is provided in Notification No.01/2017- 1GST (Rate) dtd. 28.06.2017. Sr. No. 92 of Schedule-II of Notification No.01/2017- IGST (Rate] dtd. 28.06.2017 provides for 12% GST rate for "Bagasse Board" falling under Chapter 44 or any chapter of the Customs Tariff Act. The relevant Sr. No.92 Schedule-II of Notification No.01/2017- IGST (Rate) dtd.28.06.2017 is reproduced hereunder: 92. 44 or any chapter The following goods, namely: - a. Cement Bonded Particle Board; b. Jute Particle Board; c. Rice Husk Board; d. Glass-fibre Reinforced Gypsum Board (GRG). e. Sisal-fibre Boards; f. Bagasse Board; and g. Cotton Stalk Particle Board h. Particle/fibre board manufactured from agricultural crop residues (iii) However, apart from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sse-75% 2. Wood Particles - 25% 3. Resins-5kgs. (e) This product is known in the market as bagasse based particleboard. The question before the Hon. Authority is whether bagasse based Particle Board manufactured with a composition of 75% bagasse, 25% of wood particles and 5 kgs. of resins falls under serial No.92 of Schedule II (GST rate 12%) or under Sr. No. 137A of Schedule III (GST rate 18%) of the Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017. (f) Generally, all types of particle boards are covered under the heading 4410 vide Sr. No.l37A of Schedule-Ill of the Notification No. 1/2017 - 1GST (Rate) dated 28.06.2017. Sr. No. 137A is comprehensive and covers all type of particleboards. The relevant description of Sr. No. 137A of Schedule-III is reproduced as under: "Particle board, Oriented Strand Board and similar board [for example, wafer board) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances, other than specified boards". (g) However, Sr. No. 92 of Schedule-II of the Notification No. 1/2017 - IGST (Rate) dated 28.06.2017 specifically covers some of the boards viz. Cement Bonded Partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule-11 of Not. 1/2017- IGST (Rate) dt. 28.06.2017 which provides for 12% GST rate for "Bagasse Board" falling under Chapter 44 or any chapter. (k) The view of the applicant is also supported by following judgments: (I) In case of NAFFAR CHANDRA JUTE MILLS LTD. Versus ASSISTANT COLLECTOR OF C. EX. 1993 (66) E.L.T. 574 (Cal.) 1993 (66) E.L.T. 574 (Cal.) = 1993 (3) TMI 112 - HIGH COURT AT CALCUTTA, wherein it is stated that: "45. Section 2 of the Central Excise Tariff Act, 1985 provides: ' Duties specified in the Schedule to be levied. The rates at which duties of excise shall be levied under the Central Excises and Salt Act, 1944 (1 of1944), are specified in the Schedule." 46. The Schedule which contains the rates of duties in respect of specified items has categorized these items sectionally. Within each section are chapters covering sub-categories of the section. Each section contains specific rules of interpretation in respect of entries in the section and relate to intersectional admixtures. The Rules relied upon by the petitioners are the Rules for the interpretation of the schedule itself. There are general rules of interpretation applicable to inter-sectional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and Salt Act, 1944.'" (II) In case of THERMODORS PVT. LTD. Versus COMMISSIONER OF CENTRAL EXCISE, PUNE 2016 (334) E.L.T. 174 (Tri. - Mumbai) = 2016 (3) TMI 348 - CESTAT MUMBAI: "6. We find that the product i.e. Missile containers are manufactured out of two main ingredient i.e. Plastic and Glass Fiber. Plastic content in the product is to the extent of 39% and Glass Fiber is 33%. The product Missile Container is a container which does not have a single specific entry in the tariff act Any container manufactured is liable to be classified depending upon the raw material used such as if container is manufactured predominantly made of plastic/Glass/ Metal/Aluminum/copper/steel, the classification of the container will be based on the material used in the container. In case of this type of product if the goods is manufactured with various material then being composite product the classification shall be based on the predominant ingredient contained in the product. In the present case the pre-dominant input is plastic as compared to Glass fiber therefore the product Missile Container merit classification under Chapter 39 and not under Chapter 70. The submission of the appellant th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the plastic material and it should be assessed only as such. An earlier assessment under Chapter 59 in 1976 will not prevent the Government from reviewing the matter specially as there is no estoppel in taxing statute. 9. We, therefore, agree with the view that the proper classification of the belts in question would be as articles of plastic under Heading 39.07 of the Customs Tariff Act, 1975 and not under Heading 59.16/17 as stated by the Appellate Collector. The impugned order is, therefore, set aside and the appeal is allowed." (l) In light of the above interpretation of law, the applicant request the Honorable Authority to take into consideration the relevant Notification, Rules and case laws and give an advance ruling that the Bagasse-based particle board containing predominant amount of bagasse and some amount of wood particles shall fall in serial No.92 of Schedule 11 (GST rate 12%) of the Notification No. 01/2017 - Integrated Tax (Rate) dated 28.06.2017 as the predominant raw material is bagasse. 3. The Central Goods & Services Tax Commissionerate, Surat, vide their letter dated 08.06.2018 has submitted the point wise comments as under: (i) The activity is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 28.06.2017 as the predominant raw material is bagasse and would attracts GST @ 12%. 7. We find that the 'Bagasse board' has specific entry at Sr. No. 92 in Schedule II to the Notification No.01/2017- Central Tax (Rate), dated 28.06.2017. Accordingly, the said entry covers Bagasse boards falling under Chapter 44 or any other Chapter and attracts concessional GST rate of 12%. Said entry reads as under: 92. 44 or any chapter The following goods, namely: - a. Cement Bonded Particle Board; b. Jute Particle Board; c. Rice Husk Board; d. Glass-fibre Reinforced Gypsum Board (GRG). e. Sisal-fibre Boards; f. Bagasse Board; and g. Cotton Stalk Particle Board h. Particle/fibre board manufactured from agricultural crop residues 8. We find that the applicant has sought for advance ruling for GST rate of the product, Bagasse based Particle Board manufactured with a composition of 75% of bagasse, 25% of wood particles and 5 kgs of resins. Above entry covers Bagasse Board manufactured from bagasse only. We find that apart from the Particle Boards mentioned in entry at Sr. No. 92 in Schedule II to the Notification No. 01/2017- Central Tax (Rate), dated 28.06.2017 above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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