TMI Blog2022 (12) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... repared and sold by the Applicant is a Manufactured Tobacco product for chewing . Once it is held that the product is 'Manufactured Chewing Tobacco', the classification of the product is under HSN Code 24039910 which specifies 'Chewing Tobacco' under the head 2403-Other manufactured tobacco . Further, as per Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, the said item appears at Sr. No. 15 of Schedule-IV of the said notification [on which GST liability is 28%. As per Notification No.01/2017-Compensation Cess(Rate) dated 28.06.2017, Chewing Tobacco (without lime tube) appears at SI. No.26 of the said notification (on which Compensation Cess is 160%) . Furthermore, it may be noted that the value for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of Raula Gundi (Chewable Gundi- its final product) supplying the same to various Betel shops, Grocery shops, Tea shops etc under the cover of GST invoices. 2.1 The Applicant in its application has stated that for preparation of Raula Gundi , he purchases different raw materials like Tobacco dust, Bhaja dhania, Madhuri, Mala zira, Mustard oil, Epoil, Lime etc. 3.0 The personal hearing was fixed on 14.10.2022 under due intimation to the Applicant, the jurisdictional officer of State GST jurisdictional officer of Central GST (intimated through their respective Commissionerates along with a copy of application of the Applicant). The Applicant himself along with its representative Mr S.K. Pattanayak, Advocate appeared for person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14% SGST) along with GST Cess @72%. 4.0 Discussion findings 4.1 We have considered the application made by the Applicant for advance ruling as well as the written submission (in Odia language) submitted on 20.10.2022. We have also considered the questions and issues on which advance ruling is sought for by the Applicant. We, observe that the issue before us is squarely covered under Section 97(2) of the CGST Act, 2017 and therefore we admit the application for consideration. 4.2 The questions before us in respect of which ruling has been sought are as under;- (a) What is the HSN Code of 'Raula Gundi' (Final product of the Applicant)? (b) What is the applicable rate of tax and Cess of the product? 4.3 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of manufacturing the product, the raw materials used by the Applicant undergo a set of processes and emerge as 'Chewable Tobacco Gundi' which is marketable/consumable. Therefore, the product prepared and sold by the Applicant is a Manufactured Tobacco product for chewing . Once it is held that the product is 'Manufactured Chewing Tobacco', the classification of the product is under HSN Code 24039910 which specifies 'Chewing Tobacco' under the head 2403-Other manufactured tobacco . The very purpose of consuming this combination is that it has both stimulant and relaxation effects, but regular consumption of the same leads to addiction. It is believed to produce a sense of euphoria in the body which is akin to tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r rolled biris, manufactured without the aid of machine 28% 2403 19 29 Other 28% 240319 90 Other; 28% 0 Other: 2403 91 00 Homogenised or reconstituted tobacco 28% 2403 99 Other: 2403 99 10 Chewing tobacco 28% 2403 99 20 Preparations containing chewing tobacco 28% 2403 99 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )? Ans : The final product of the Applicant under the brand name 'Raula Gundi' is nothing but Chewing Tobacco (without lime tube) as discussed in the foregoing para 4.5 and the HSN Code is '2403 9910'. 5.2 Q.2 What is the applicable rate of tax and Cess of the product? Ans :- The applicable rate of GST on the product is 28% (14% CGST + 14% SGST). The said product also appears at Sl.No.26 of Notification No.01/2017-Compensalion Cess (Rate) dated 28.06.2017 issued under the CGST Act, 2017 under which Compensation Cess of 160% is leviable on it. 6.0 Note: The Applicant or jurisdictional officer, if aggrieved by the ruling, may appeal to the Odisha State Appellate Authority for Advance Ruling under Section 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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