2018 (10) TMI 1048 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 362 (A. A. R. – GST) – Classification of goods – rate of tax – Agricultural Seedling Trays – Applicant claims that the goods are to be classifiable under Tariff heading 8201 Chapter 82 falls under Section XV of Customs Tariff which covers “Base Metals an articles of Base Metals”.
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Held that:- A combined reading of section and chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this Section XV have to be made of base metals or should be articles of base metals. ‘Base metals as per Section Note above do not include plastics’. Further, chapter 82 covering ‘Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal’ should necessarily have a blade, working edge, working surface or other working part of base metal or others – The product in question is Seedling Trays made of fully of plastic i.e. polypropylene and
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ny agricultural machinery. Rice planting machinery do not need these seedling trays to function and hence cannot be classified as parts or accessories of agricultural machinery.
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The subject goods are rightly classified under CTH 39269099 as articles of plastics not elsewhere specified. SL no 111 of Schedule III of Notification No 01/2017-C.T. (Rate) dated 28.06.2017 as amended and SL no 111 of Schedule III of of G.O. (Ms) No. 62 dated 29.06.2017 no. II (2)/CTR/532(d-4)/2017 covers “Other articles of plastics and articles of other materials of headings 3901 to 3914 [other than bangles of plastic, plastic beads and feeding bottles]” at 9% CGST and 9% SGST.
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Ruling:- Agricultural Seedling Trays made of Plastic manufactured by the Applicant are classifiable under CTH 39269099 and the applicable tax rate is 9% CGST as per Sl. No. 111 of Schedule 111 of Notification No 01/2017-C.T. (Rate) dated 28.06.2017 as amended and is 9% SGST as per Sl No. 111 of Schedule III of G.O. (Ms) No.
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as Saro or Applicant) are a proprietary manufacturer registered under GSTIN 33AANPM1974C1ZS. The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They are manufacturing Hard Nursery Trays used for the Rice transportation. Saro Enterpriseshas sought Advance Ruling on the Applicable tax on Agricultural trays . 2.1 Saro Enterprises manufacture and market disposable plastic items like lunch trays, spoons and other plastic packaging products including Plastic Seedling Trays which is used for paddy transplantation. The trays are solely used for agricultural purpose for growing paddy, and generally called Agricultural Seedling Trays . They market the trays to the end users, basically farmers as well as small dealers who further make the sale of these trays to farmers. Agricultural Seedling Trays are used m
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s made of polypropylene. It is seen from the catalogue produced that the goods are of dimensions 600 mm x 30 mm x 30 mm with grooves dividing the tray into small squares each of which have holes of 1 mm or 3 mm size, depending on the variety of the tray. Paddy seedlings are grown in these trays. The holes are designed to ensure optimum drainage of water and to prevent the roots from getting damaged. The applicant states that the trays are also compatible to various rice transplantation machinery. However, the tray itself is not a part of any machine or used with any machine or electronically driven. It is seen from the invoices produced that the goods are being sold as Agriculture Paddy Seedling Tray . 4.1 The issue before us is to determine the classification of -Agricultural Seedling Trays. In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-h
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portable forges, grinding wheels with frameworks, manicure or pedicure sets, and goods of heading No. 82.09, this chapter covers only articles with a blade, working edge, working surface or other working part of: (a) Base Metal; (b) Metal carbides or cermets; (c) Precious or semi-precious stones (natural, synthetic or reconstructed) on a support of base metal, metal carbide or cermet; or (d) Abrasive materials on a support of base metal, provided that the articles have cutting teeth, flutes, grooves, or the like, of base metal, which retain their identity and function after the application of the abrasive. Explanatory Notes to Chapter 82 states Tools, cutlery etc do not in general fall in their Chapter unless the blade, working edge, working surface or other working part is of base metal, of metal carbides or of cermets. A combined reading of section and chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this Section XV have t
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stic or polypropylene with dimensions 600 mm x 30 mm x 30 mm with grooves dividing the tray into small squares each of which have holes of 1 mm or 3 mm size, depending on the variety of the tray. Paddy seedlings are grown in these trays after suitable soil is placed in them. The holes are designed to ensure optimum drainage of water and to prevent the roots from getting damaged. Once the seedlings are grown as a single mat, the trays used to transport the seedlings to the land for transplantation. This may be done directly by the farmer or the seedling mats may be placed in rice transplant machinery which will carry on the transplantation work. The Applicant states that the trays are sold to end users who are farmers and also small dealers who make the sale to farmers. These trays are also compatible to various rice transplantation machinery in terms of the dimension of the seedlings mat grown, spacing between each seedling etc. The trays help in growing and transporting the seedlings
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