In Re: M/s. Raja Slates Pvt. Ltd.
GST
2018 (10) TMI 299 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 102 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, GUJARAT – AAR
Dated:- 30-7-2018
GUJ/GAAR/R/2018/12 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2017-18/AR/10)
GST
R.B. MANKODI AND G.C. JAIN, MEMBER
Present for the applicant : Shri P.R. Tindwani, Advocate
The applicant M/s. Raja Slates Pvt. Ltd. has submitted in the application that it is engaged in the business of manufacturing and trading of 'slates', which are used by primary school students, mostly at village level, for the purpose of learning i.e. educational purpose. Applicant has submitted that the 'slates' were tax free under Gujarat Value Added Tax Act and under GST Act also under Chapter 96 – Miscellaneous Manufactured Articles with HSN Code 9610 0000
2. The applicant submitted that it has got order from Gujarat Council of Elementary Education Sarva Shikshan Abhiyan Mission for sup
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cant submitted that applicant is of the opinion that both the slates i.e. Students' Slate and Teachers' Slate are of same category, Teachers' Slates should also be treated as tax free, as the Students' Slates are already tax free under GST Act.
4. The applicant submitted that applicant is getting some job work done on slates and when the main manufactured item is tax free, they are not required to pay tax under Reverse Charge Mechanism for job work.
5. The Goods and Services Tax and Central Excise Commissionerate, Bhavnagar, inter-alia informed that the applicant was not registered with the department under erstwhile Central Excise Act; that as per GST Tariff, HSN Code 9610 0000 reads as “slates and boards with writing or drawing surface, whether or not framed”.
6. We have considered the submissions made by the applicant in their application and at the time of personal hearing. We have also considered the views of the Goods and Services Tax and Central Excise Commissionerate, Bhavna
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ided on 21.09.2010 reported at 2010 (258) ELT 321 (S.C.)] = 2010 (9) TMI 12 – SUPREME COURT OF INDIA, has held as follows :-
“12. In Collector of Central Excise, Shillong v. Wood Crafts Products Ltd. reported in (1995) 3 SCC 454 = 1995 (3) TMI 93 – SUPREME COURT OF INDIA, it was held by this Court that as expressly stated in the statements of objects and reasons of the Central Excise Tariff Act, 1985, the Central Excise Tariffs are based on the Harmonious System of Nomenclature (HSN) and the internationally accepted nomenclature was taken into account to reduce disputes on account of tariff classification. Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the Harmonious System of Nomenclature (HSN). Although, the decision in the case of Woodcraft Products (supra) dealt with the interpretation of the provisions of the Central Excise Tariff there can be no doubt that the HSN Explanatory Notes
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g 25.14 or 68.03)”
9.2 The technical specification of 'Slate for Teacher', as submitted with the application, are as follows :-
“Size : 24 X 24 Inch Tolerance : 0.3 Inch
Thickness : 5.5 mm
Material : Pine wood base MDF (Medium Density Fibre)
Color : Lead free Black Color
* 4 Plastic corners with smooth finish and should be fixed with Rivet
* Both Side : Plane
* Without frame
* 32 inch Nylon string : Pack Separately
* Surface should be writeable with Slate pen and chalk
* Hole :- Black Finish Two Hole one on the top with 8 inch ____ the Slate
* Packing : Each Slate in plastic bag and 10 Slates in one ____suitable size.”
9.3 The technical specification of 'Slate for student', as submitted with the application, are as follows :-
“Slate should be with Tinpatti Frame in four sides and both side
Slate Size : 24 X 24 Inch (out to out) Tolerance : 0.3 Inch
Tinpatti (Tinfree) minimum 0.20 mm thick of size : _____ size and backside
Frame should be fixed with four plastic
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cal specification of 'Teachers' Slate' and 'Students' Slate', as submitted by the applicant, and Explanatory Notes for Heading 96.10 of Harmonised System of Nomenclature, into consideration, we hold that the product 'Teachers' Slate' and 'Students' Slate' is appropriately classifiable under Tariff Heading 96.10.
10.1 The next issue is regarding rate of Goods and Services Tax on 'Teachers' Slate' and 'Students' Slate'. The product 'Slates' falling under Tariff Item 9610 00 00 is exempted from Goods and Services Tax vide Sl. No. 146 of Notification No. 2/2017Central Tax (Rate) dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 (herein after referred to as the 'CGST Act, 2017') and corresponding Notification issued under the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the 'GGST Act, 2017) and the Integrated Goods and Services Tax Act, 2017 (herein after referred to as the 'IGST Act, 2017'), whereas the product 'Boards, with writing or dra
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e Supreme Court has held as follows :
“4. It is well settled that in interpreting Items in statutes like the Excise Tax Acts or Sales Tax Acts, whose primary object is to raise revenue and for which purpose they classify diverse products, articles and substances resort should be had not to the scientific and technical meaning of the terms or expressions used but to their popular meaning, that is to say, the meaning attached to them by those dealing in them. If any term or expression has been defined in the enactment then it must be understood in the sense in which it is defined but in the absence of any definition being given in the enactment the meaning of the term in common parlance or commercial parlance has to be adopted. ……….”
10.4 This view was upheld by Hon'ble Supreme Court in the case of Oswal Agro Mills Ltd. Vs. Collector of Central Excise [1993 (66) E.L.T. 37 (S.C.)] = 1993 (4) TMI 73 – SUPREME COURT OF INDIA. While reiterating the principle that in absence of statut
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upra)].”
10.5 It needs to be therefore examined whether the products manufactured and supplied by the applicant can be termed as 'Slates' as understood in common parlance, or otherwise.
10.6 It is observed that in the document issued by the Gujarat Council of Elementary Education, the products have been referred to as 'Slate for Student' and 'Slate for Teacher'. Thus, the products 'Slate for Student' and 'Slate for Teacher' are known as 'Slates' in common parlance and therefore are eligible for exemption from payment of Goods and Services Tax vide Sl. No. 146 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017 and corresponding Notifications issued under the GGST Act, 2017 and the IGST Act, 2017.
11.1 The another issue raised by the applicant is that they are getting some job work done on slates and when the main manufactured item is tax free, in the opinion of applicant, it is not required to pay tax under Reverse Charge Mechanism for job
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services on physical inputs (goods) owned by others' from the supplier of such service who is not registered, the Goods and Services Tax is required to be paid under Section 9(4) of the CGST Act, 2017 and the GGST Act, 2017, subject to exemption, if any, available.
12. In view of the foregoing, we rule as under –
R U L I N G
(A) The products 'Slate for Student' and 'Slate for Teacher' supplied by M/s. Raja Slates Pvt. Ltd. (GSTIN 24AAACR3936K1ZB) are appropriately classifiable under Tariff Heading 96.10.
(B) The products 'Slate for Student' and 'Slate for Teacher' supplied by M/s. Raja Slates Pvt. Ltd. (GSTIN 24AAACR3936K1ZB) are eligible for exemption from payment of Goods and Services Tax vide Sl. No. 146 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017 and Sl. No. 146 of Notifications No. 2/2017-State Tax (Rate) dated 30.06.2017 issued under the GGST Act, 2017.
(C) In case of receipt of 'manufacturing services on physical inpu
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