In Re: M/s. Acrymold
GST
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)
AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – AAR
Dated:- 23-3-2018
GST-ARA-12/2017/B-15
GST
MAHARASHTRA AUTHORITY FOR ADVANCE RULING
PROCEEDINGS
(under section 98 of the Central Goods and 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,
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official documents the above product is classified under the HSN 83062920. The chapter no. 83 deals specifically with articles of BASE METAL. As Trophies and Awards are made of a variety of material namely, METAL, PLASTIC, GLASS, MDF/WOOD, RESIN; etc. There is no clear classification of the same under other chapters.
As I am an importer/manufacturer of these items, If we go by the Customs Classification, there is 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 ma
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er HSS code 83062920 For Metal
Statements containing the applicant's interpretation of low and/or facts, as the case may be, in respect of the aforesaid question(s) (i.e. applicant's view point and submission on issues on which the advance ruling is sought).
Chapter No 83 Deals with the basic raw material as metal & specifically mentions Trophies as a Product.
What Will be the HSN Code classification for Trophies & Awards, 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 Tro
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ed that the dealer is an importer, manufacturer and trader in Trophies. These trophies are made with the combination of Metal, wood, glass etc. The dealer has applied for advance ruling of rate of tax of these articles
As regards this, I have examined the HSN code classification of these goods. It is observed that HSN code describes the articles which are made up or only one substance.
For example –
1) HSN code 83062920 (Rate of tax 12%) describe trophies, however Chapter Head 83 is specifically meant for the articles 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
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Frame (Wooden) – 44140000 – BOE for Home Consumption dt. 06.01.2018
Medals (Iron & Zinc) – 83062990 – BOE for Home Consumption dt. 06.01.2018
Plastic Trophy cups – 39269099 – BOE for Home Consumption dt. 06.01.2018
Glass Blocks & Showpiece – 70189090 – BOE for Home Consumption dt. 17.11.2016
Glass Trophy & Trophy Parts – 70189090 – BOE for Home Consumption dt. 17.11.2016
Plastic Photo Frame – 39269099 – BOE for Home Consumption dt. 06.01.2018
Plastic Trophy Parts – 83062920
Tax Invoices showing following particulars :
* Trophy 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.OBS
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r. Base material is different from base metal. The Harmonized Commodity Description and Coding System Explanatory (HSN) Notes and the Customs Tariff Notes in respect of SECTION XV about BASE METALS AND ARTICLFS OF BASE METAL clarifies thus –
“3. Throughout this Schedule, the expression “base metals” means : iron and steel, copper, nickel, aluminium, 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,
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
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etal predominating by weight over each of the other metals.
For this purpose:
(a) iron and steel, or different kinds of iron or steel, are regarded as one and the same metal:
(b) an alloy is regarded as being entirely composed of that metal as an alloy of which, by virtue of Note 5, it is classified; and
(c) a cermet of heading 8113 is regarded as a single base metal.
We find that the HSN Notes of the Section XV under the Heading “General” also clarify thus –
GENERAL
This Section covers base metals (including those in a chemically pure state) and many articles thereof A list of goods of base metal not covered by this Section is reproduced at the end of this 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
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reference in Chapter 82 or 83 or elsewhere to “base metal” includes alloys classified as alloys of base metals.
Under Note 5 to Chapter 71 and Note 5 to this Section alloys of base metals are classified as follows :
(1) Alloys Of base metals with precious metals
These alloys are classified as base metals provided that no one of the precious metals (silver. gold and platinum) constitutes as much as 2% by weight of the alloy. Other alloys of base metals with precious metals are classified in Chapter 71.
(2) Alloys of base metals
These alloys are classified with the metal which predominates by weight, with the exception of ferro-alloys (see the Explanatory Note to heading 72.02) and 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 exceed
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urposes, a part made of brass would be treated as if it were wholly of copper).
(3) A cermet of heading 81.13 is regarded as single base metal
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 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 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 gr
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, artificial flowers, rosettes and similar ornamental goods of cast or forged metal (usuakllly of wrought iron); knick-knacks for shelves or domestic display cabinets.
(2)…………..
It can be seen from all the above Notes that the constituent materials of the trophies has to be seen to understand the classification. For Chapter 83, the requirement of one of the constituents being a base metal is necessary. We have seen above that the HSN Notes to Section XV say that articles made partly of non-metals are also covered provided that, under the General Interpretative Rules, the base metal gives them their essential character. We may as well see the Tariff Interpretative Rules as follows :
“2. 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 determin
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The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.
3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However. when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods. even if one 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 th
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