TaxTMI 
TaxTMI 
2018 (9) TMI 696
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.... etc. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. As per the said subsection (2) of Section 97 of the GGST Act advance ruling can be sought by an applicant in respect of : (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Whether the applicant is required to be registered (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term 4. As per section 97(2) (a) & (e) of CGST/SGST ....
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.... d. Shampoo Towels. 9. Now we will discuss the above mentioned products one by one. (A) Wet Baby Wipes It consist of Non-woven spun lace fabric of 40-60 grams per square made from 60-70% viscose (regenerated cellulose) fiber +30%-40% polyester fiber of standard size 150 mm x 200 mm. Details of ingredients and functions are as follows: TABLE-A Ingredients Functions Water Water Propylene Glycol Humectant Phenoxyethanol Preservative Glycerin Moisturisation Propylene Glycol Humectant Polysorbate 20 Surfactant and Fragrance Solubiliser PGE-40 Hydrogenated Castor Oil Emulsifying Agent Disodium Cocoamphodiacetate Cleansing Agent Herb Complex-6 Biological Additive used for moisturizing, nourishing and natural antibacterial activity Disodium EDTA Chelating Agent Aloe Barbadensis Leaf juice (Aloe Vera) Purgative Aloin (nourishing & soothing agent) Vitamin E Vitamin Fragrance Fragrance It is pertinent to mention here that the Government vide F.No.332/2/2017-TRU dated 22.12.2017 has clarified the matter and the relevant portion of the same is as under- Sl.No. Queries Replies ....
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....r HSN code-3307 and as on date it will attract GST @ 18%.. (C) Bed and Bath Towels Under this category in respect of the composition of materials, size and use of the goods details provided by the applicant is reproduced hereunder as: It consist of Non-woven spun lace fabric of 40-60 grams per square meter of standard size 300 mm x 240 mm. Details of ingredients and functions are as follows: TABLE-C Ingredients Functions Aqua Solvent Chlorhexidine Gluconate 20% Anti- bacterial Propylene glycol Solvent Euxyl K703 Preservatives Glycerine Moisturiser Polysorbate-20 Solubiliser Dehytone Dc Cleansing Agent Cocamidopropylbetaine Cleansing Agent Alolvera Gel Skin Conditioner Dc-193 Skin Conditioner Peg-40 Hydrogenated Castor oil Solubiliser Sodium Gluconate Chelating Agent Fragrance Fragrance Citric Acid Buffering Agent The basic function of the aforesaid product is to clean and moisturizing the skin which may be use for body cleansing for a bed ridden person or who requires partial assistance. The applicant reiterated the submissions made with regard to "Wet Face Wipes" for the produc....
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....hapter 56 "5603- Nonwovens, whether or not impregnated, coated, covered or laminated:" On going through the submission of the applicant, we observe that the primary function of the "Bed and Bath Towels" is to clean the skin for which certain ingredients like 'Dehytone De & 'Cocamidopropylbeatine' who acts like cleansing agent are impregnated with the fabric and further the addition of the 'Chlorohexidine Gluconate 20% enhances its function as "disinfectant" who kill the bacteria alongwith the 'fragrance' to make the person to feel better. Basically, the conclusion is that the product reflects its primary function which is "clean the skin". The basic fundamental principle of classification is guided by the Schedule of Tariff in the section notes and tariff notes. The description in each of the Chapters is the basic criteria for the purpose of classification. Now we take the issue as under: 3307: The Chapter note 4 in chapter 33 provides the expression cosmetic or toilet preparations" m heading 3307 applies, inter alia, to the, wadding felt and nonwovens, impregnated, coated or covered with perfume or cosmetics. Further Chapter note 3 of Chapter 33....
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....dients Functions Aqua Solvent Chlorhexidine Gluconate 20% Anti-.bacterial Propylene glycol Solvent Euxyl K703 Preservatives Disodium Edta Chelating agent Polysorbate-20 Solubiliser Polyquaternium-10 Hair conditioner Plantcare 2000 Up Foaming agent Dc-193 Hair Conditioner Peg-40 Hydrogenated Castor oil Solubiliser Capb Foaming agent Fragrance Fragrance Citric Acid Buffering Agent The basic function of the aforesaid product is to clean and shampooing the hairs which may be use for a bed-ridden person or who requires partial assistance. The applicant in this case reiterated the submissions made with regard to "Wet Face Wipes" for the product "Shampoo Towels'' as per Point no. 11 of the Annexure- II enclosed with the Application for Advance Ruling. The Hon'ble Apex Court judgment dated 13.04.2018 in CIVIL APPEAL NO. 1766 OF 2009 in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS MADHAN AGRO INDUSTRIES (I) PVT. LTD = 2018 (4) TMI 721 - SUPREME COURT held that: "(i) The Heading 33.05 covers "preparations for use on the hair". Coconut oil is not a preparation for use on the hair. It is ....