TMI Blog‘Kandi Ravo’ a tobacco waste to be classified under tariff entry 24013000X X X X Extracts X X X X X X X X Extracts X X X X ..... ‘Kandi Ravo’ a tobacco waste to be classified under tariff entry 24013000 - By: - CA Bimal Jain - Goods and Services Tax - GST - Dated:- 28-7-2023 - - The AAR, Gujarat, in the matter of IN RE: M/S. DEVENDRAKUMAR RAMBHAI PATEL - 2023 (7) TMI 189 - AUTHORITY FOR ADVANCE RULING, GUJARAT ruled that Kandi Ravo the unmanufactured tobacco, made by crushing tobacco refuse and mixing it with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natural clay water is appropriately classifiable under tariff entry 24013000 and the assessee is liable to pay 28% GST on supply of such goods. Facts: M/s. Devendrakumar Rambhai Patel ( the Applicant ) is engaged in the supply unprocessed tobacco which is properly known as Kandi Ravo ( the goods ) . The Applicant directly purchases the good from the farmers. The Applicant state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the goods falls under the category of unmanufactured tobacco without tube lime. The Applicant further stated that the product is waste tobacco mixed with natural clay and water and the product is not altered. Moreover, the product is not used in pan masala and is never put in a paan. The Applicant was of the view that the product is sold in 30-35 kg bags its price range is also not simila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to that of chewing/scented tobacco. Issue: What is the classification of 'Kandi Ravo' under GST? Held: The AAR, Gujarat, in IN RE: M/S. DEVENDRAKUMAR RAMBHAI PATEL - 2023 (7) TMI 189 - AUTHORITY FOR ADVANCE RULING, GUJARAT held as under: Observed that, Section 2(72) of the Central Goods and Services Tax Act, 2017 ( the CGST Act ) defines manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term manufacturer shall be construed accordingly. Noted that, the process of making Kandi Ravo does not amount to manufacture as defined under Section 2(72) of the CGST Act. Observed, custom tariff heading 2401 which covers unmanufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured tobacco in the form of whole plants/leaves in natural state, cured or fermented leaves, whole, stemmed/stripped, trimmed/semi trimmed broken/cut, blended cased with a liquid of appropriate composition prevent drying and to preserve the flavour. Opined that, though the Applicant has undertaken the process of crushing tobacco refuse and thereafter mixing it with natural clay water, in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the HSN notes, we find that it still remains an unmanufactured tobacco. Held that, the classification of Kandi Ravo will be under tariff entry 24013000 and attracts the GST liability of 28% GST in terms of Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017. (Author can be reached at info@a2ztaxcorp.com ) - - Scholarly articles for knowledge sharing autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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