2019 (2) TMI 1525 – AUTHORITY FOR ADVANCE RULINGS, ODISHA – TMI – Classification of goods – Gudakhu – liability to pay NCCD (National Calamity Contingency Duty) – Held that:- Gudakhu as manufactured by the applicant is certainly not classified under any specific tariff item in any of the sub-headings under the Heading 24 03. Accordingly, it can be classified and rightly so under the residual tariff item 2403 99 90 – other’ of the said Chapter Heading because of its composition, character and use.
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Determination of the liability to pay NCCD (National Calamity Contingency Duty) – Held that:- It is clarified that the aforesaid duty is a levy under the Central Excise Act and not under the CGST/ OCST/IGST Act. The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. NCCD being not a levy under the OGST/CGST Act, it is not within the competence and mandates of the Authority of Advance Ruling con
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/- for SGST bearing CIN No. SBlN18082100000103 dated 01.08.2018 and ₹ 5000/- for CGST under Account No. 00000011312321408 dated 06.11.2018 towards the fee for Advance Ruling, The applicant submits that the question raised in the application has neither been decided by nor is pending for adjudication before any authority under any provisions of the GST Act. The concerned jurisdictional officer raised no objection to the admission of the application. The application is therefore, admitted. 2.0 The applicant inter-allia submitted that the applicant is engaged in the business of manufacture and sale of Gudakhu , a tobacco product in a paste form which is generally used as a Tooth paste. The main ingredients of gudakhu are tobacco, molasses, lime, red soil, and water etc. It is classified as a tobacco product . The applicant is of the view that gudakhu is covered under the classification code 2403 11 10. The applicant substantiated such view as below. 2.1. The Hon ble Odisha High Cour
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tinctly different from gudakhu which is not meant for chewing but only applied to the teeth orally like a tooth paste for cleansing teeth. Even in jurisprudence and in statutory construction, as per the Rule of ejusdem generis , where general words follow an enumeration of persons or things, by words of a particular and specific meaning, such general words are not to be construed in their widest extent, but are to be held as applying only to persons or things of the same general kind or class as those specifically mentioned. Therefore, the general word all other goods… in the Tariff heading 2403 9990 would take their meaning from the specific words (i.e. gutkha, pan masala etc. which are meant for chewing only. 3.0. Personal Hearing was fixed on 03.01.2019. Shri Ravi Shankar Sistla, CA appeared for personal hearing and he filed a written submission reiterating the stand taken earlier. In his considered opinion Gudakhu should be classified under the tariff heading 240311 10 and s
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about 50-60%. Gudakhu is commercially available in a paste form as well as in a granular form and the composition of both of these products is the same. However, while the paste is used orally as toothpaste, the substance in a granular form is used for smoking as hookah. The applicant in the instant case is engaged in the manufacture of gudakhu in paste form only. 4.2 it is seen that the applicant has been clearing the product as Branded Gudakhu with CETH No-2403 99 90 right since the day of taking Central excise registration w.e.f. 01.10.2002. Though, the product remained same under the GST regime, the applicant now wants to reclassify it under the code 240311 10 . The concerned jurisdictional officer of CGST contended that Gudakhu is not entirely tobacco but rather a product consisting of tobacco, molasses, lime, red soil, water etc. Most of its composition materials are similar to Gutkha except areca nut. It is primarily applied on teeth and pressed and chewed. So, it should be, and
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te to chapter 24 that for the purposes of sub-heading 2403-11, the expression water pipe tobacco means tobacco intended for smoking in a water pipe and which consists of a mixture of tobacco and glycerol, whether or not containing aromatic oils and extracts, molasses or sugar and whether or not flavored with fruit. The tariff item 2403 11 10 Hookah or Gudakhu Tobacco bearing a brand name refers to Hookah or Gudakhu Tobacco (branded) used as a smoking tobacco in a water pipe as explained in the sub heading note of Chapter 24, under sub heading 2403 11. In no way it refers to the non-smoking tobacco irrespective of the nomenclature and composition. Commercially Hookah or Gudakhu Tobacco is sold in granular form which is not the case in gudakhu manufactured by the applicant. Gudakhu manufactured by the applicant is sold as a paste and is used as a tooth paste. Hence, it is distinctly different from hookah tobacco by its essential character and use. While hookah or gudakhu tobacco as class
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gutkha and zarda etc. it also includes cut tobacco, tobacco extracts and snuffs which do not belong to the family of chewing tobacco. The sub-heading which reads as 2403 99 – other bears the essential character of a residual entry so as to classify all other forms of tobacco not specified in the preceding sub-headings. No doubt it classifies certain known chewing tobacco products under the sub-heading but, it also includes cut tobacco, tobacco extracts, snuff and other. The entry other appearing against 2403 99 90 is intended to cover all other tobacco products not specified under the preceding sub-headings under chapter 24 and also not specified under the tariff items specified under sub-heading 2403 99. Thus, the contention of the applicant that a tariff item can be classified under the sub-heading 2403 99 only if the said item belongs to the family of chewing tobacco like gutkha , zarda or khaini is totally misplaced in as much as the said sub-heading also specifies other tobacco p
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