2018 (10) TMI 299 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 102 (A. A. R. – GST) – Classification of goods – Rate of tax – Slate for Teacher’ – ‘Slate for Student’ – job-work – receipt of ‘manufacturing services on physical inputs (goods) owned by others’ by M/s. Raja Slates Pvt. Ltd.
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Held that:- From the technical specification of ‘Teachers’ Slate’ and ‘Students’ Slate’, we find that the same are clearly designed to be used for writing or drawing with slate pen and chalk. The material specified to be used in ‘Teachers’ Slate’ is Pine wood base MDF (Medium Density Fibre) and it should be without frame. The material specified to be used in ‘Students’ Slate’ is Pine wood base MDF (Medium Density Fibre) and it should be with Tinpatti Frame in four sides and both sides. Taking the technical 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 c
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t, 2017.
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It is now well settled principle of interpretation of statue that the word not defined in the statute must be construed in its popular sense, meaning ‘that sense which people conversant with the subject matter with which the statue is dealing would attribute to it’. It is to be construed as understood in common language.
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Whether the products manufactured and supplied by the applicant can be termed as ‘Slates’ as understood in common parlance, or otherwise? – Held that:- 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 is
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e for paying the tax in relation to the supply of such goods or services or both.
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In a case where registered person is recipient of taxable service of ‘manufacturing 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.
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Ruling:- The products ‘Slate for Student’ and ‘Slate for Teacher’ supplied by M/s. Raja Slates Pvt. Ltd. are appropriately classifiable under Tariff Heading 96.10.
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The products ‘Slate for Student’ and ‘Slate for Teacher’ supplied by M/s. Raja Slates Pvt. Ltd. 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.
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Code 9610 0000 2. The applicant submitted that it has got order from Gujarat Council of Elementary Education Sarva Shikshan Abhiyan Mission for supply of Teachers Slate and Students Slate. Teachers Slate is used by teachers to explain to students, whereas the Students Slate is used by students for learning. The dimension and inputs of both the types of slates as per tender was attached with the application. As per the specifications, the size of Students Slate is 12 X 12 with Tin Patti frame in four sides and the frame is to be fitted with four plastic corners with smooth finish, thickness of slate is 3 mm and material used is pinewood base MDF (Medium Density Fibre). The size of Teachers Slate is 24 X 24 in size with 5.5 mm thickness and material used is same i.e. pinewood base MDF (Medium Density Fibre) without frame but plastic corner are fitted at four corners. The applicant submitted that the difference between Students Slate and Teachers Slate is in respect of dimension and thick
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personal hearing. We have also considered the views of the Goods and Services Tax and Central Excise Commissionerate, Bhavnagar. 7. We find that the main issue involved in this case is regarding classification of goods viz. Slate for Teacher and Slate for Student . 8.1 It is observed that the Explanation (iii) and (iv) of the Notification No. 1/2017Central Tax (Rate) dated 28.06.2017 provides as follows :- Explanation. – For the purposes of this notification, – (i) …… (ii) …… (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 8.2 Furth
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interpretation of the provisions of the Central Excise Tariff there can be no doubt that the HSN Explanatory Notes are a dependable guide even while interpreting the Customs Tariff. 9.1 The Explanatory Notes for Heading 96.10 of Harmonised System of Nomenclature reads as follows :- 96.10 Slates and boards, with writing or drawing surfaces, whether or not framed. This heading covers slates and boards, clearly designed to be used for writing or drawing with slate pencils, chalks, felt or fibre tipped markers (e.g., school children s slates, blackboards and certain notice boards). These articles, framed or not, may be of slate, including agglomerated slate, or may consist or any material (wood, paperboard, textile material, asbestos cement, etc.) covered on one or both sides with a preparation of powdered slate or any other coating suitable for writing on, or sheeting of plastics. Boards or slates may bear permanent markings (lines, squares, lists of commodities, etc.) and may incorporate
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___ size and backside Frame should be fixed with four plastic corner with Aluminium Rivet Thickness of Slate : 3 mm Material : Pine wood base MDF (Medium Density Fibre) Color : Lead free Black Color 24 inch Nylon String (Pack Separately) Surface should be writeable with Slate pen and chalk Hole :- Black Finish Two Hole one on the top with 4 ________ the Slate Line Printing :- One side :Plane Second Side : Line printing as per drawing given _____ Packing : Each Slate in plastic bag and 20 Slates in one Box of suitable size. 9.3 From the technical specification of Teachers Slate and Students Slate , we find that the same are clearly designed to be used for writing or drawing with slate pen and chalk. The material specified to be used in Teachers Slate is Pine wood base MDF (Medium Density Fibre) and it should be without frame. The material specified to be used in Students Slate is Pine wood base MDF (Medium Density Fibre) and it should be with Tinpatti Frame in four sides and both sides.
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surface, whether or not framed falling under Tariff Item 9610 00 00 is leviable to Goods and Services Tax @ 18% (CGST 9% + SGST 9% or IGST 18%) vide Sl. No. 448 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017 and corresponding Notification issued under the GGST Act, 2017 or the IGST Act, 2017. 10.2 The term Slates has not been defined under the CGST Act, 2017, the GGST Act, 2017, IGST Act, 2017 or the Notifications issued there under. 10.3 It is now well settled principle of interpretation of statue that the word not defined in the statute must be construed in its popular sense, meaning that sense which people conversant with the subject matter with which the statue is dealing would attribute to it . It is to be construed as understood in common language. In the case of Indo International Industries Vs. Commissioner of Sales Tax, U.P. [1981 (8) E.L.T. 325 (S.C.)] = 1981 (3) TMI 77 – SUPREME COURT OF INDIA, Hon ble Supreme C
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ory definitions, they have to be construed according to their common parlance understanding, Hon ble Supreme Court, in the case of Commissioner of Central Excise Vs. Connaught Plaza Restaurant (P) Ltd. [2012 (286) E.L.T. 321 (S.C.)] = 2012 (12) TMI 149 – SUPREME COURT, has referred to various decisions on the subject and observed as follows :- Common Parlance Test : 18. Time and again, the principle of common parlance as the standard for interpreting terms in the taxing statutes, albeit subject to certain exceptions, where the statutory context runs to the contrary, has been reiterated. The application of the common parlance test is an extension of the general principle of interpretation of statutes for deciphering the mind of the law maker; it is an attempt to discover the intention of the Legislature from the language used by it, keeping always in mind, that the language is at best an imperfect instrument for the expression of actual human thoughts. [(See Oswal Agro Mills Ltd (supra)
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egard, we observe that as per clause 3 of Schedule II of the CGST Act 2017 and the GGST Act, 2017, any treatment or process which is applied to another person s goods is a supply of services . Accordingly, applicable Goods and Service Tax on manufacturing services on physical inputs (goods) owned by others is required to be paid. 11.3 Further, as per clause (4) of Section 9 of the CGST Act, 2017 and the GGST Act, 2017 the Goods and Services Tax (Central Goods & Services Tax and State Goods and Services Tax) in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of the Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Therefore, in a case where registered person is recipient of taxable service of manufacturing services on physical i
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