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TMI Blog2020 (12) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... t, seeking an advance ruling in respect of the following questions. What is the (HSN) classification of Tyre Pyrolysis Oil and what is Current rate of tax applicable? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by the applicant is as under:- 2.1 M/s Royal Carb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. Tariff Code Description Royal Carbon Products Rate 1 28030010 Carbon black Carbon Black 18% 2 40040000 Waste Rubber Rubber 5% 3 27101950 Fuel oil Pyrolysis Oil 18% 4 72041000 Waste Scrap steel Steel as A Scrap 18% 3.2 The jurisdictional officer has made additional submission on 10.02.2020, and stated therein that, according to Annexure A and B provided, the applicant is into complete recycling of used tyres and in such a process of recycling, one of the byproducts is pyrolysis oil which is sold as liquid fuel. In GST there is no separate entry of pyrolysis oil which is the end product of waste tyre. The oil is widely used as industrial fuel to substitute furnace oil or industrial diesel. Applicant has requested t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sense to refer only to the heaviest commercial fuel that can be obtained from crude oil, i.e. heavier than gasoline and naphtha. Small molecules like those in propane, naphtha, gasoline for cars, and jet fuel have relatively low boiling points, and they are removed at the start of the fractional distillation process. Heavier petroleum products like diesel fuel and lubricating oil are much less volatile and distill out more slowly, while bunker oil is literally the bottom of the barrel; in oil distilling, the only things denser than bunker fuel are carbon black feedstock and bituminous residue (asphalt), which is used for paving roads and sealing roofs. Biodiesel is typically made by chemically reacting lipids (all organic sources) and pyro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant has requested this authority to classify the product "Pyrolysis Oil" being manufactured by them. 5.2 We find that the Applicant is engaged in recycling of the waste tyres used by vehicles and pyrolysis oil is recovered during the said process of recycle, along with other products like Iron and Steel and carbon black. It is only the rubber component of the tyre which is converted into Pyrolysis Oil, which can be used for heating purposes and as a liquid fuel. Applicant has submitted that Pyrolysis oil can also be sold as a liquid fuel 5.3 Since there is no specific and separate schedule entry prescribed for "Tyre pyrolysis oil", we are required to classify the said product. 5.4 Applicant has submitted that pyrolysis oil should be cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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