TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 1064
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....orrugation and supplied to customer in flat form ? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". 02 FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTION(S) ON WHICH THE ADVANCE RULING IS REQUIRED "TCPL" is one of India's largest manufacturers of folding cartons, printed blanks & outers, litho lamination, plastic cartons, blister packs, and shelf ready packaging. It also manufactures packaging material using films etc. There appears a doubt on the classification and applicability of GST of items namely (a) packaging materials viz cut to size blanks manufactured by TCPL with corrugation and ....
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....ion and supplied to customer in flat form, from your lordship to avoid any unnecessary dispute arising in the future A sample of both the categories of items would be produced before your good-self at the time of Personal Hearing. Additional submissions on 06.02.2019 WRITTEN SUBMISSION TO BE FILED BEFORE THE OFFICE OF ADVANCE AUTHORITY, MAHARASTHRA STATE MUMBAI ON 30-01-2012 1.0 TCPL Packaging Limited (here-in-after referred to as "the Applicant") is one of India's largest manufacturers of folding cartons, printed blanks & outers, litho lamination, plastic cartons, blister packs and shelf ready packaging. 2.0 ISSUE-T-Classification and applicability of GST on items namely packaging materials viz cut to size blanks manufactured by TCPL with corrugation and having requisite creases at designated places, supplied to the Customers in flat form with folding 2.1 The Applicant is engaged in manufacturing of cartons of corrugated paper or paperboard falling under HSN Code 4819 leviable to GST at the rate of 12%. The cartons are folded on three sides and glued on the fourth side. They could be having fock bottom facility with opening at the top. A specimen of carton made of corru....
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....ied to the Customers in flat form cannot be used by the customer is any form other than as cartons or boxes to hold goods. The customer folds the blanks into carton at the requisite creases manually or mechanically at their business premise and use the same as carton to hold goods. The Hon'ble Supreme Court in the case of CC v. Sony India [2008 (231) ELT (SC) = 2008 (9) TMI 19 - SUPREME COURT has held that Rule 2(a) of the General Rules for the Interpretation of the Harmonised System would apply when the goods unassembled or disassembled can be put together by simple fixing device or by riveting or welding. It was further observed by the Hon'ble Supreme Court that the goods requiring complicated process to make final products cannot be considered as unfinished goods having essential character of complete articles. 2.7 We would like to bring this to your kind notice that in the instant case, the transformation of 'packaging materials in flat form' to its ultimate use i.e. 'cartons or boxes to hold goods' is not at all a complicated process and can be carried out by folding the blanks into carton at the requisite creases manually or mechanically. The said process does not require a....
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.... to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres (other than paper pulp moulded trays, Braille paper, kites, Paper mache articles and paying GST at the rate of 18%. 3.3 However, we have observed disparity in the industry on the classification of such items, wherein such items have been classified at 12%. Hence, we most humbly pray before your good-self for an advance ruling on appropriate classification and GST Rate of namely Printed materials which are in flat form, e.g. hanging cards, without creases having corrugation or not and supplied to customer in flat form. STATEMENT CONTAINING THE APPLICANT'S INTERPRETATION OF LAW AND/OR FACTS, AS THE CASE MAY BE, IN RESPECT OF THE QUESTION(S) ON WHICH THE ADVANCE RULING IS REQUIRED "At the outset, please note that while interpreting a taxing statute, the principle and the object of the Act has to be kept in mind and it has to be seen in the light of the scheme of the Act and the context thereof. If the words of the statute are clear, plain, unambiguous, the courts are bound to give effect to that meaning. To find out the exact connotation of a word in a statute, the c....
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....n case of Inter-State Supply: Regarding, printed materials which are in flat form, e.g. hanging cards, without creases having corrugation and supplied to customer in flat form, we are of the view that the captioned items fall under Tariff Item Code (Chapter 4823) - Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres (other than paper pulp moulded trays, Braille paper, kites, Paper mache articles and should be chargeable at 18% GST. However, there is disparity in the industry on the classification of such items and hence, we would require an advance ruling on the captioned item as well to avoid any dispute accruing in the future. Additional submissions on 13.02.2019 1.0 This is with reference to Application for Advance Ruling filed by Ms. TCPL Packaging Limited (GSTIN 27AAACT1406E1ZV] In short 'Applicant] bearing Application Reference No. (ARN): AE2712180008832 Dt. 27.12.2018 on the issue of classification of the goods and hearing held on 06-02-2019 before your good-self in this regard, wherein the application was duly admitted. 2.0 As soug....
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....sion in case of M/S. TCPL PACKAGING LIMITED The dealer has applied under Advance Ruling for clarification in respect of the following questions 1. Whether the packaging materials viz cut to size blanks manufactured by TCPL with corrugation and having requisite creases at designated places, supplied to the customers in flat form with folding, can be categorized under Tariff item code no 4819 and subject to GST @ 12%. 2. What would be the appropriate categorization and GST rate of printed materials which are in flat form, e.g. hanging cards, without creases having corrugation and supplied to customer in flat form? As per the Notification No. 1/2017- Central Tax (Rate) dated 28th June 2017 by Government of India. 1. The packaging material with corrugation manufactured by TCPL can be categorized under Tariff item code no. 4819 and is liable to tax at the rate 12%. 2. Printed material in Flat form having corrugation would be categorized under Tariff code 4819 and GST rate of tax on outward supply is 12%. 04. HEARING The Preliminary hearing in the matter was held on 06.02.2019, She S. G. Nanavati, Executive Director, along with Sh. Amit Kar, Sr. Gen. Manager Marketing....
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.... designated places and we find that the said products are with corrugations/ perforations and therefore foldable on three sides and glued on the fourth side. These blanks can be folded into cartons at the requisite creases manually or mechanically without any further processes. We also find that the said blanks can be used by their customers only as cartons/ boxes, after the folding takes place, without the use of technical expertise. We further find that the said products are dispatched by the applicant to their customers only when they receive orders for cartons/ boxes for packing in DVD players belonging to their customer. Hence at the time of receiving the order and dispatching of the said products both, the applicant and their customer are aware that what will be sent by the applicant and received by the customers are cartons/ boxes. The said cartons/ boxes are probably sent in flat condition is because more cartons can be transported by the applicant in one go. If they prepare the cartons/ boxes and dispatch the same then a lot of space will be utilized during transportation and since conversion from flats to cartons/ boxes does not need any special and technical expertise it....