Agency in CNG distribution makes outlet operators commission agents, rendering taxable Business Auxiliary Service rather than purchasing goods for res...
Composite inpatient healthcare supply may retain exemption despite MRP medicine billing, while separate taxable sale characterisation remains disputed...
Working-capital adjustment determines whether software-services transfer-pricing margins fall within the statutory tolerance range, eliminating any ad...
Permanent establishment deductions upheld for expatriate salaries, direct costs and trading losses, while head-office costs require fresh classificati...
Tobacco pre-mixed with lime undergoes a manufacturing process involving mixing of lime paste, evaporation of water content, and addition of aroma, menthol, and moisturizer, resulting in a new product distinct from raw tobacco leaves. This process transforms the raw material into a marketable/consumable product for chewing needs, classifying it as "manufactured chewing tobacco" under CTH 2403 99 10. Consequently, the applicable GST rate is 28%, and the Compensation Cess rate is 160% as per Notification No. 1/2017-Compensation Cess (R). The ruling relies on the Supreme Court's decision in State of Madras Vs Bell mark Tobacco Company, which held that the cumulative effect of various processes on tobacco amounts to a manufacturing process.
Tobacco pre-mixed with lime undergoes a manufacturing process involving mixing of lime paste, evaporation of water content, and addition of aroma, menthol, and moisturizer, resulting in a new product distinct from raw tobacco leaves. This process transforms the raw material into a marketable/consumable product for chewing needs, classifying it as "manufactured chewing tobacco" under CTH 2403 99 10. Consequently, the applicable GST rate is 28%, and the Compensation Cess rate is 160% as per Notification No. 1/2017-Compensation Cess (R). The ruling relies on the Supreme Court's decision in State of Madras Vs Bell mark Tobacco Company, which held that the cumulative effect of various processes on tobacco amounts to a manufacturing process.
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