2018 (5) TMI 597 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2018 (13) G. S. T. L. 435 (A. A. R. – GST), [2018] 2 GSTL (AAR) 55 (AAR), [2019] 60 G S.T.R. 473 (AAR) – Classification – application of Interpretive Rules – TROPHY – Wooden Trophies & Frames – Metal Trophies & Awards – Trophies made or pop and other Resins – material used in making of Trophy – If the word TROPHY is specifically mentioned under 83062920, So can we sell all trophies made of any material under this HSN? – Held that: – As can be seen, the constituent materials, the combination with non-metals, etc. have to be seen to understand the classification. Therefore, even though the word TROPHY is specifically mentioned under 83062920, all trophies made of any material cannot be classified under this HSN and are to be classified as per the applicable provisions of the Customs Tariff Headings. – Question is answered in negative.
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The question: If different code is allocated to trophies assembled of different mate
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d Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by ACRYMOLD, the applicant, seeking an advance ruling in respect of the following questions : 1. If the word TROPHY is specifically mentioned under 83062920, So can we sell all trophies made of any material under this HSN? 2. If different code is allocated to trophies assembled of different material, I would like to know if there is a combination of different materials and about 75% (value terms) is getting used of any one Raw Material, under which HSN should we make bill? 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 such dissimilar provisions, a
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s discrepancy of HSN allotted to these goods which are imported under different HSN code for this same product viz-a viz Mumbai, Kolkata & Delhi ports Thus there is variation in IGST rate for the same product. Due to this discrepancy we as traders suffer due to reduced sales compared to lower IGST/CGST rate being charged by some traders. To put it mildly my sales have taken a hit of due to this anomaly as customers are demanding us to charge the lower IGST/CGST rates for this item. My request to you is: Under which HSN code do [classify the product Trophies and Awards made from these different raw materials? Also if product is made with a combination of the above materials, (plastic, glass, metal, plastic etc) under which HSN code should it be classified? Can we have an official domestic classification for these products (like in china) so that a uniform IGST/CGST rate is charged across our industry by all traders, As there is no formal association who can handle this i beg to ask
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Manufactured with base material namely Plastic, Glass, MDF, Wood & POP or with a combination of all the above? Our Item Description Description as per HSN HSN Code GST For Glass Crystal Trophies & Awards Glass Beads Immitation Pearls Immitations Precious or Semi precious and Similar glass smallweare and articles thereat other than… 7018 Other 70181090 18% for Plastic Trophy and trophy parts Other articles of plastics and articles of other materials or heading nos. 39.01 to 39.14 3926 18% Others 39261019 For Wooden Trophies & Frames Heading 4414 to 4421 apples to articles of the respective descriptions of particle board or similar board, fibre board, laminated wood as they apply to such articles of such wood Wooden frames for paintings, photographs, mirrors or similar objects 4414 18% For Metal Trophies & Awards Bells Gongs and the like, non-electric of base metal; Statuettes and other ornaments, of base metal; Photograph, picture or similar frames, of base metal;
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ticles made up of Base metal. 2) HSN code 70181090 describes articles made up of glass only (Rate of tax 18%) 3) HSN code 39261019 is meant for other articles of plastic and articles of other materials (Rate of tax is 18%). 4) HSN code Chapter heading 4414 to 4421 applies to articles of the wood (Rate of tax is 18%). 5) HSN code 68099000 is meant for articles made up of plaster of Paris (Rate of tax 18%) From the above discussion, we can conclude that all the trophies are classified in different Chapter Headings based on the fact that from which material they are made up of? Obviously, this principle dbase material and above entries will not be applicable to the Trophies which are made up of combination of wood, plastic, base metal etc., which are having different rate of tax. Hence, it is felt that the said article falls under residuary entry no. 453 of Schedule III which bears 18% of tax. 04. HEARING The case was taken up for hearing on dt.31.01.2018 and on dt.21.02.2018 when Sh. Mur
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y Wooden – 83062920 Only Pillar Trophy – 83062920 Metal Flange and Katory – 83062920 Customize Wood Pillar – 83062920 Trophy (- x -cm wood + box) – 8306 Trophy x -cm wood + foil + box) – 8306 Sports Spare Frames – 9506 Trophy (wooden + metal + glass) – 8306 The concerned jurisdictional officer Sh. Rajendra Gaikwad, Deputy Commissioner of State Tax (E-820), Mumbai attended and furnished a written submission. 05.OBSERVATIONS We have gone through the facts of the case. We find that by letter dt.24.02.2018 (received on dt.26.02.2018), the applicant has framed the following questions for our decision : 1. If the word TROPHY is specifically mentioned under 83062920, So can we sell all trophies made of any material under this HSN? 2. If different code is allocated to trophies assembled of different material, I would like to know if there is a combination of different materials and about 75% (value terms) is getting used of any one Raw Material, under which HSN should we make bill? We shall de
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, Now we may look at the Customs Tariff Heading 8306 thus – 8306 BELLS, GONGS AND THE LIKE, NON -ELECTRIC, OF BASE METAL ; STATUETTES AND OTHER ORNAMENTS , OF BASE METAL ; PHOTOGRAPH , PICTURE OR SIMILAR FRAMES, OF BASE METAL; MIRRORS OF BASE METAL 83061000 – Bells, gongs and the like – Statuettes and other ornaments: 830621 – Plated with precious metal: 83062110 Statuettes 83062120 Trophies 83062190 Other 830629 – Other : 83062910 Statuettes 83062920 Trophies 83062990 Other 83063000 – Photograph, picture or similar frames; mirrors As can be seen, the Tariff item 83062120 covers Trophies . This would be the trophies of base metal and not of any other material. The mere mention of the word trophies would not mean that trophies of any material would be covered by the Heading. The Chapter 83 is for miscellaneous articles of base metal. Hence, the Heading 8306 falling in the Chapter 83 would have to be understood in that sense only. The HSN Notes and Customs Tariff Notes to Section X
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s Explanatory Note. The Section also includes native metals separated from their gangues, and the mattes of copper, nickel or cobalt. Metallic ores and native metals still enclosed in their gangues are excluded (heading 26.01 to 26.17). In accordance With Note 3 to this Section, throughout the Nomenclature. the expression base metals means : iron and steel, copper, nickel, aluminum, lead, zInc, tin, tungsten (wolfram), molybdenum, tantalum, magnesium, cobalt. bismuth, cadmium, titanium, Zirconium, antimony, manganese, beryllium, chromium, germanium, vanadium, gallium. hafnium. indium, niobium, (columbium), rhenium and thallium. Each of the Chapters 72 10 76 and 78 to 81 covers particular unwrought base metals and products of those metals Such as bars, rods, wire or sheets, as well as articles thereof except certain specified articles of base metal which, without regard to the nature of the constituent metal, are classified in Chapter 82 or 83. these Chapters being limited to the specif
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nd master alloys of copper (see the Explanatory Note to heading 74.05) (3) Alloys of base metals of this Section with non-metals or with the metals of heading 28.05. These are classified as alloys of base metals of this Section provided the total weight of base metals of this Section equals or exceeds the total weight of the Other elements present. If this not the Case, the alloys are generally Classified in heading 38.24. (4)….. (B) ARTICLES OF BASE METALS In accordance with Section Note 7 base metal articles containing two or more base metals are classified as articles of that metal which predominates by weight over each of the other metals, except Where the headings otherwise require (e.g., copper- headed iron or steel nails are classified in heading 74.15 even if the copper is not the major constituent). The same rule applies to articles made partly of non-metals, provided that: under the General Interpretative Rules, the base metal gives them their essential character. In c
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tting used of any one Raw Material, under which HSN should we make bill? We have to say that this again is a very general question. The interpretive rules governing the classification have to be seen. The HSN Notes to Heading 8306 say thus – (B) Statuettes and Other ornaments This group comprises a wide range of ornaments of base metal (whether or not incorporating subsidiary non-metallic parts) of a kind designed essentially for decoration, e.g., in homes, offices, assembly rooms, places of religious worship, gardens. It should be noted that the group does not include articles of more specific headings of the Nomenclature, even if those articles are suited by their nature or finish as ornaments. The group covers articles which have no utility value but are wholly ornamental, and articles whose only usefulness is to contain or support other decorative articles or to add to their decorative effect, for example : (1) Busts, statuettes and other decorative figures; ornaments (including th
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. THE GENERAL RULES FOR THE INTERPRETATION OF IMPORT TARIFF Classification of goods in this Schedule shall be governed by the following principles: 1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule). presented unassembled or disassembled. (b) Any reference in a heading to a material or substance sh
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ne of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. In addition to the above, the Chapter Notes may also be referred to understand the inclusions and exclusions therefrom. We would advise the applicant to understand the above Rules and determine the classification accordingly. In
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