TaxTMI 
TaxTMI 
2019 (4) TMI 74
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.... due to the sun-curing process. It is a special variety of tobacco leaves used mainly by people of Kerala especially people of Malabar for chewing along with betel leaves purposes. The petitioner filed an application for advance ruling on the following: 01. What is the HSN code applicable to sun-cured "Tobaco leaves" Known in Kerala as purchased from farmers of Puliyampatti areas of Tamil Nadu used only for chewing by consumers in Kerala? 02. What is the rate of tax applicable to "Kannipukayila" of the description mentioned in the first question? It is 5% (CGST + KGST) classifiable under Serial No. 109 of the Schedule I of Notification No. 1/2017 - Central Tax (Rate) dated 28-06-2017 or 28% classifiable under Serial No. 13 of Schedule IV ....
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....ing on the quality of the final produce. During the progress of curing, some important biochemical changes take place. The curing operation followed In India are dependent on several factors, such as tradition. convenience, market value of the crop, consideration of economic production, etc. Curing in relation to tobacco leaves means removal of moisture from tobacco leaves and includes other essential ordinary process to make it consumable. The curing process will take 172 days for delivery. After wilting, tobacco stem with leaves are hanged on bamboo poles for sun drying for three weeks. Then the leaves are bundled in lot of 5 to 7 Kg tied with plantain fiber and stacked in a shed layer by layer. Then it is covered with palm mate and kept....
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.... per serial number 13 of Schedule IV of Notification No-01/2017-Central Tax (Rate) dated 28-06-2017 "un-manufactured tobacco" is brought under 28% taxable category. But the entry itself clearly specified that un-manufactured tobacco; tobacco refuse (other than tobacco leaves) are taxable at the rate of 28%. Since tobacco leaves are specifically excluded from Schedule IV. Sl. No. 13; it will squarely come under Schedule of Sl. No. 109 and taxable at the rate of 5%. Therefore tobacco leaves including the leaves cut from plant. dry leaves. cured leaves by applying natural process ordinarily used by the farmers to make them fit to be taken go market shall qualify 5% tax rate. It is a common knowledge that without curing tobacco leaves cannot be....