In Re: M/s. Saro Enterprises
GST
2018 (10) TMI 1048 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 362 (A. A. R. – GST), [2019] 69 G S.T.R. 40 (AAR)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 16/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note : Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s'. 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 manually for preparing seedling and it is neither a part of any machine nor it is used with any machine/ electronically driven.
2.2 Under TNVAT the goods were exempted as 'Agricultural Implements' as per advance ruling obtained by them. Under GST, they state that the goods are agricultural implements under Chapter 8201 which is exempted as per Sl.No. 137 of Notification No 2/2017-Central Tax dt 28.06.2017 as amended.
3.1 The Authorized Representative of the Applicant was heard in the matter. They have produced profile of Company, write-up, pamphlets of the product. The goods are made up of recycled or pure poly- propylene. They have stated that the items are Agricultural implements classifiable under 8201 and used as seedling trays by farmers for transplanting seedlings. In VAT regime they are exempt as agri
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
4.2 The 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”.
Section Note 3 states:
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, man
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 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 as above.
The product in question is Seedling Trays made of fully of plastic i.e. polypropylene and hence it cannot be classified under chapter 82 or anywhere under Section XV and accordingly it cannot be classified under 8201 as Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 in an organized, labor-saving manner so that the seedling mats grown can be fed into the machines or planted as such by hand. However, the tray itself is not a part of any machine or used with any machine or electronically driven nor is it an accessory of any 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.
The goods are trays made of polypropylene of certain dimensions.
Chapter 39 covers Plastics and articles thereof
Chapter 3926 covers
Other articles of plastics and articles of other materials of headings 3901 to 3914
Tariff Heading 39269099 covers other articles not specified
HSN Explanatory Notes to Chapter heading 3926 states
Thi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =