In Re: M/s. Jeena Exports
GST
2018 (10) TMI 1049 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 311 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 15/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note : Any appeal against the advance ruling order shall be filed before the Tamilnadu 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 the same provisions under the T
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k, generally about one-third of the husk is processed into as coir fibre, whereas two-thirds of the husk is generated as coir pith. The spongy material that binds the coir fibre in the husk is the coir pith. The composition and properties of coir pith vary depending on maturity of coconut, method of extraction and disposal, period from extracting to use and environmental factors. As there is no specific GST rate for the same, rate of tax and classification was sought by the applicant, the same may be provided.
These goods were exempted in previous VAT and Excise Act. A picture of the same was enclosed with the application.
2.2 The Applicants have stated that as per the Customs Tariff Act 1975, Coir pith processed in value added form like briquette, coins, neo disc, grow bags, organic manure and in loose form for use in horticulture or agriculture is included in Chapter 5305 00 40. However, coir pith in its natural form is not included in the HSN: 5305 00 40 and hence there is no spec
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d into bales. The coir pith is compressed into blocks without adding any additional ingredients or chemicals for easy transportation for further supply. The photo submitted at the time of the application shows the coir pith before such compression is in loose powder form. It is seen from the sale invoices that the applicant is indicating the goods as “Coir Fibre Dust, Wet pith”, “Coir Pith Blocks” “Coir Pith Briquettes”
4.1 The issue to be decided is the applicable 'GST Rate' of the product of the applicant, 'Coir Pith'. Contentions of the Applicant was examined with connected records and facts. To determine the applicable rate, the goods have to be correctly classified first. It is stated by the applicant that after extraction of fibre the non -fibrous material that binds the coconut fibre in the husk is the coir pith. They compress the same without adding any chemicals into blocks. From the manufacturing process and invoices submitted by the applicants, it is seen that the goods are
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submissions of the Applicant, it is evident that the coir pith is in raw or natural form which is different from coir fibre, which is the other product extracted from the coconut husk as stated by the Applicant supplied in the form of blocks, briquette and in loose form(Dust). Therefore, the product is more appropriately covered under the Heading 53050040.
4.3 The rate of tax under GST is prescribed under Notification no. 01 / 2017- C.T. (Rate) dated 28.06.2017 as amended and the exemptions are given vide Notification No. 02/2017-C.T. (Rate) dated 28.06.2017 as amended. The entries relevant to Coir Pith/ Chapter 5305 in both these notifications are given as under:
Schedule 1 of Notification No. 01 /2017-C.T. (Rate) dated 28.06.2017:-
Sl.No.
Chapter Head
Description
Rate
215
5305 to 5308
All goods [other than coconut coir fibre] including yarn of flax, jute, other textile bast fibres, other vegetable textile fibres; paper yarn [including coir pith compost put up in unit contain
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ereafter “coir pith compost other than those put up in unit container and bearing a registered brand name/ brand name” alone is added to the exemption list.
4.4 The products in question are coir pith in raw form which is either sold as loose form or supplied by the applicant in Blocks, Briquettes form without any addition of chemicals. It is different from coir fibre. Further, the coir pith supplied by the Applicant does not undergo composting process, which would alter its composition and cannot be called as coir pith compost. Hence coir pith in its raw form whether in loose powder or compressed into blocks form are taxable at 2.5% CGST as per Sl. No 215 of Schedule I of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and at 2.5% SGST as per Sl.No. 215 of Schedule I of G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017.
5. In view of the foregoing, we rule as under:
RULING
Coir pith in its raw form whether in loose powder or compressed into blocks form
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