2019 (2) TMI 193 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMI – Classification of goods – rate of GST – Quicklime having 86% Calcium oxide content – Slaked lime having 86% Calcium hydroxide content – Held that:- Chapter 2522 of Customs Tariff covers Quicklime, Slaked Lime and Hydraulic Lime, Other Than Calcium Oxide and Hydroxide of Heading 2825 and CTH 2522 1000 covers Quick lime and CTH 25222000 covers slaked lime – 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.
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It is found from the manufacturing process and the requirement of the intended buyers, that the goo
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e 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 Tamil Nadu Goods and Service Tax Act. Shri. Palaniappan Chinnadurai [Prop: M/s. Tuticorin Lime and Chemical Industries] No. 4/103, Saikanth Building, Muthammal Colony, Thoothukudi – 628002, (herein after called the Applicant) is a Registered person under GST 2017 with GSTIN 33AANPC6142N1ZL. The Applicant are going to start sales of hydrated lime. They have filed an Application seeking Advance Ruling on the following question: What is the applicable chapter and GST rate for Quicklime having 86% Calcium oxide content and Slaked lime having 86% Calcium hydroxide content? The Applicant has submitted the copy of Application in Form GST ARA – 001 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,0O0/- each und
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ide 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 Hydroxide content) which are used for building purposes i.e. white washing etc., will come under chapter 25 and attracts 5% GST rate.; Quick Lime which is of high purity (Above 70% Calcium Oxide content) and Slacked Lime which is of high purity (Above 70% Calcium Hydroxide content) which are used for industrial purposes like Steel making, Chemical Plant etc., will come under chapter 28 and attract 18% GST rate.; GST rates for quicklime and slaked lime when searched in CBEC-GST the goods come under chapter 25 with 5% GST; but when calcium oxide and calcium hydroxide are searched, both the goods come under chapter 28 with 18% GST. Therefore, the Applicant has sought clarification of Quicklime and slaked lime and the applicable GST rate. 3. The Applicant was personally heard on the matter. They submitted CBEC Advance Ruling
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ial 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 product is known as Slaked Lime / Hydrated Lime, which contains 70 to 90% Ca (OH) 2. The balance material is un-burnt Calcium Carbonate. They sell their Slacked Lime or Hydrated Lime to Chemical Industries like The Kerala Minerals and Metals Limited and Water Treatment Plants like The Kerala Water Authority. It is seen from the invoices raised on these buyers by Kaycee Industrial Chemicals Pvt Limited as Hydrated Lime , HSN 28259040 with the lab report giving a purity of 87.88%, 79.8%, 88.92%, 84.6% calcium hydroxide with the acceptable content at 70% as per the purchase order. 4.2 The Applicants have relied on the order of Advance Ruling of Central Board of Excise and Customs in the Ruling No. AAR/02(CE)/2007 dated 30.08.2007 wherein it was held that burnt lime proposed to be used in the manufacture of steel and compri
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tion 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 therefore the observations/interpretations with respect to the Section Notes and chapter Notes holds in the current taxation of GST. 5.3. Chapter 2522 of Customs Tariff covers Quicklime, Slaked Lime and Hydraulic Lime, Other Than Calcium Oxide and Hydroxide of Heading 2825 and CTH 2522 1000 covers Quick lime and CTH 25222000 covers slaked lime,- General Notes to HSN Explanatory Notes to Chapter 25 states: Quicklime (an impure calcium oxide) is obtained by calcining limestone containing very little or no clay. It combines very rapidly with water, giving off considerable heat and producing slaked lime (calcium hydroxide). Slaked lime is usually employed for soil improvement or in the sugar industry. Hydraulic lime is obtained by low temperature calcination of limestone containing sufficient clay (although usually less than 20 %)
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ganic Bases, Other Metal Oxides, Hydroxides and Peroxides. CTH 28259040 covers Calcium Hydroxide and CTH 28259090 covers others. Note 1 to Chapter 28 states: NOTES: 1. except where the context otherwise requires, the headings of this Chapter apply only to: (a) separate chemical elements and separate chemically defined compounds, whether or not containing impurities; (b) the products mentioned in (a) above dissolved in water; HSN Explanatory Notes to chapter heading 2825 states:- (11) Calcium oxide, hydroxide and peroxide. This heading covers only the oxide (CaO) and the hydroxide (Ca(OH)2), in the pure state (i.e., containing practically no clay, iron oxide, manganese oxide, etc.), such as the product obtained by calcining precipitated calcium carbonate. The heading also covers fused lime obtained by fusing ordinary quicklime in an electric furnace. This product has a high degree of purity (approximately 98 % calcium oxide); it is crystalline and generally colourless. It is used, in pa
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ring process and the requirement of the intended buyers, that the goods to be supplied is industrial grade Calcium Hydroxide of high purity of 86% and industrial grade Calcium oxide of high purity of 86% are rightly classifiable under CTH 28259040 and CTH 28259090 respectively taxable at 9% CGST and 9% SGST as per entry sl.No.38 of Schedule III of Notification no. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017 as amended respectively. 6. In view of the above, we rule as under: RULING Industrial Grade Quick Lime having 86% of Calcium Oxide content and Industrial Grade Slacked Lime having 86% of Calcium Hydroxide content, proposed to be supplied by the applicant are classifiable under CTH 28259090 and CTH 28259040 and respectively, both taxable at 9% CGST and 9% SGST as per entry Sl.No.38 of Schedule III of Notification no. 01/2017-C.T. (Rate) dated 28.06.2017 as amended and G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CT
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