2019 (1) TMI 1489

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ant states that the questions raised in the Application have neither been decided by nor are pending before any authority under any provision of the GST Act. The concerned officer from the revenue has raised no objection to the admission of the application. The application is, therefore, admitted. 2. The Application submits that the process of service undertaken by the Applicant involves assembly of materials on machine, including blended tea leaves and other inputs received from the recipient of the service. The Applicant used to classify it as packaging service under SAC 998540 and charge GST under Sl. No. 23 (iii) of Notification No. 11/2017 - CT (Rate) dated 28/06/2017, as amended from time to time (hereinafter referred to as "the Ra....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ces provided with respect to other recipients is subject to the specific nature of the contracts with them. 3. According to the Agreement the Applicant shall manufacture and/or process and pack tea bags of Taj Mahal, Lipton and Brook Bond brands at his plants at 17 Taratala Road, Kolkata - 700088 and BBT Road, Parbangla, Mahestala, Kolkata - 7000141. In terms of clause 5.3 of the Agreement, HUL shall procure, transport and deliver to the Applicant's manufacturing units all the raw materials, packing materials and other materials required for such activities. The ownership and property in the materials so delivered shall at all times vests in and belong exclusively to HUL (clause 5.6 of the Agreement). The Applicant has no liberty to apply ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e market dynamics. Consumption of the goods so packed requires they be taken out of the pouches. However, consuming tea contained in a tea bag does not require the tea leaves to be taken out of the bag. The tea bag itself is dipped in water, as the bag is porous and is filled with tea leaves. Tea bags, therefore, are distinct from tea leaves, offering a user friendly way of making the beverage. Tea bag pouch is, therefore, not a packaging material, but an input required for manufacturing tea bag as a commercial item separate from blended tea leaves. It is a new product having a distinct name, character and use, and classified as such under Tariff item 0902 40 40. It is evident, therefore, that the Applicant's service to HUL for manufactur....