In Re: Palaniappan Chinnadurai [Prop: M/s. Trrticorin Lime and Chemical Industries]
GST
2019 (2) TMI 193 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2019 (21) G. S. T. L. 232 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 31-12-2018
Order No. 25/AAR/2018
GST
MS. MANASA GANGOTRI KATA IRS, AND THIRU S. VIJAYAKUMAR, M.SC., 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 Servi
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rity of Quick Lime is 86% Calcium Oxide (Cao) content and purity of Slacked Lime is 86% Calcium Hydroxide.; Normally Quick lime and slaked lime are classified under Chapter 2522 and the applicable GST Rate is 5%. CBEC Authority for Advance Rulings, in the Ruling No. AAR/02(CE)/2007 dated 30/08/2007 under paragraph 11.1. stated that,-
1. Quick Lime which is a less pure form of calcium oxide is used in building for white washing etc And the purer versions of quicklime with higher concentrations of calcium oxide find more sophisticated uses in steel making, manufacture of chemicals, etc
2. Quicklime which is more akin to mineral product lime, in a relatively crude form will merit classification under chapter 25, whereas the purer versions containing higher concentration of calcium oxide would get classified as metal oxide under chapter 28
The Applicant has stated that quicklime of low purity (Below 70% Calcium Oxide content) and Slacked Lime which is of low purity (Below 70% Calcium Hy
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es. They have also stated that their Products would fall under the Chapter 28. They subsequently submitted copies of Purchase Order and Invoices with Lab Reports of M/s. Kaycee Industrial Chemicals Private Limited, wherein the Applicant is the Managing Director, the Applicant is going to start sales of hydrated lime from Tuticorin Lime and Chemical Industries shortly. They also submitted Brief description of manufacturing process.
4.1 Documents submitted were verified. The manufacturing process involves they heat (Calcination) Lime Stone which is Calcium Carbonate (CaCo3) in the lime kiln; Limestone decomposes into Quick Lime which is Calcium Oxide (Cao) and Carbon dioxide (Co2). This product contains 70 to 90% Calcium Oxide content and this is known as Quick Lime or Burnt Lime, and it is in lump form. The balance material is un-burnt Calcium Carbonate. This Quicklime is sprayed with water to give Slaked Lime, which contains Calcium Hydroxide (Ca (OH) 2), which is in powder form. This
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ct lime in the crude state and would therefore merit classification as a metal oxide under 28259090 of chapter 28
5.1 The issue to be decided is the classification of Quicklime having 86% Calcium oxide content and Slaked lime having 86% Calcium Hydroxide content and the applicable rate under GST.
5.2 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-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. The Customs Tariff is aligned with HSN. In the above referred ruling, the discussion is based on Excise Tariff which is also aligned with HSN and the
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hich may be slaked with water.
The heading excludes purified calcium oxide and calcium hydroxide (heading 28.25).
From the above, it is seen that Quick lime is obtained by calcination of limestone i.e. calcium carbonate giving calcium oxide and carbon dioxide and when it is further combined with water, it produces slaked lime which is calcium hydroxide. Quick lime is used for building purposes such as white washing, whereas slaked lime is used in soil improvement and in plasters. However, purified calcium oxide and purified calcium hydroxide is excluded from 2822.
Chapter 28 of Section VI of Customs Tariff covers Inorganic Chemicals, Organic or Inorganic Compounds of Precious Metals, Of Rare-Earth Metals, Of Radioactive Elements or of Isotopes.
Chapter 2825 covers Hydrazine and Hydroxylamine and Their Inorganic Salts; Other Inorganic Bases, Other Metal Oxides, Hydroxides and Peroxides. CTH 28259040 covers Calcium Hydroxide and CTH 28259090 covers others.
Note 1 to Chapter 28 state
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ce to wear.
Calcium peroxide (CaO2) is a white or yellowish powder, hydrated (usually with 8 H20), sparingly soluble in water. Used as a bactericide and as a detergent, in medicine and in the preparation of cosmetics.
Quicklime (calcium oxide) and slaked lime (calcium hydroxide) are excluded (heading 25.22).
According to Wikipedia, Calcium Oxide is in manufacturing of cement, paper, and high-grade steel, for medicinal purpose and insecticides. Calcium Hydroxide is used in food, paper industry and in water and sewage treatment plant. It is seen that purified forms of calcium oxide and calcium hydroxide having industrial applications with high purity, which is the case in hand here, are covered under CTH 28259090 for calcium oxide and CTH 28259040 for calcium hydroxide.
5.4 Applying the above, to the case at hand, we find from the manufacturing process and the requirement of the intended buyers, that the goods to be supplied is industrial grade Calcium Hydroxide of high purity of 86%
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