TaxTMI 
TaxTMI 
2020 (7) TMI 111
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....Old Palace Building, Pudukottai 622001 (hereinafter referred as applicant) are manufacturers of Chewing Tobacco and are registered under GST Act with Registration No. 33AAHFA0811C1ZD. 2. The applicant had filed an application for Advance Ruling on 06.02.2019 seeking ruling on the following question: "Classification of the product "Chewing Tobacco" manufactured by them and applicability of Notification No.01/2()17-Compensation Cess-(Rate)." In the application they had stated that they are the manufacturers of chewing tobacco under the registered brand of "Nizam Lady" and trade name of A.R. Abdul Rahman Rowther & Co 3.1 The original authority after hearing the applicant personally and on careful examination of the submissions of the applicant and the comments furnished by Commissioner, CGST Trichy ruled as follows vide Order No.37/AAR/2019 dated 27.08.2019 = 2019 (10) TMI 273 - AUTHORITY FOR ADVANCE RULING, TAMILNADU. "The application is rejected under first proviso to Section 98(2) of the CGST/TNGST Act 2017, as the issue for which Advance Ruling is sought by the applicant is already pending before the appropriate authority. The above decision was arriv....
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....portunity to be personally heard on 29.01.2020. The authorised representative of the applicant appeared before the authority and gave a written submission. They stated that the summons was issued on 08.01.2020 which was general in nature. The subsequent SCN was issued with specific issue of classification, hence, should not be counted towards proceedings under Section 98(2). The Jurisdictional Central Tax officer appeared and gave a written submission. They stated that a statement was recorded on 09.01.2019, where the specific issue of classification was raised and hence should be counted towards proceedings under Section 98(2) and not allowable for Advance Ruling. The Jurisdictional state officer also gave a written submission. 5.2 In their written submission the applicant has contended that • they have been summoned on 8th Jan 2019 as per the provisions of Section (70) of the GST Act by the Jurisdictional authority and on 9th of Jan 2019 the statement was recorded with all relevant details of the productions, revenue paid and clearance of assessable goods, etc. • The subject matter of the summon is regarding the possible shortfall in payment of GST du....
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.... with respect to general and specific aspect are liable to be quashed. 5.3 The central Jurisdictional officer submitted the copy of the statement recorded on 09.01.2019 and also the copies of summon issued on 08.01.2019 and 19.06.2019. 5.4 The state jurisdictional officer forwarded comments on the issue raised in the application vide their letter dated 28.01.2020. They stated that under the present GST Act 2017, chewing tobacco is classified under HSN 2403 and taxable at 28% GST. They also referred to the Hon'ble Supreme Court's findings in the case of Crane Betel Nut Powder Works Vs Commissioner of Customs & Central Excise Tirupathi and another reported in 2007 (6) VST 532 (SC) = 2007 (3) TMI 6 - SUPREME COURT. 6.1 We have carefully examined the submissions made by the applicant during the personal hearing and the documents submitted by the Central Jurisdictional authority. The remand directions are for consideration and pass appropriate orders on whether the issue raised in the application by the appellant was already pending before the department after extending opportunity to the appellant The applicant in their original application has sought advance ruling on....
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.... such the same attracts GST Compensation Cess @ 160% as per notification 1/2017-Compensation Cess(Rate) dated 28.06.2017. In this regard, we wish to state that our above said final product is classifiable only under HSN 24039990. Though we have been classifying the same under CETH 24039910 upto June 2017, we honestly believe that our product is a product of such type classifiable under the category of "Other manufactured tobacco" also our product of manufactured tobacco is identifiable under Sl.No. 37 (aII goods other than Pan Masala containing tobacco gutka bearing a brand name) and SI.No. 38 (aII goods other than Pan Masala containing tobacco gutka not bearing a brand name) of the GST Compensation rate table. Accordingly, we have been paying GST Compensation @ 96% advalorem. Today as called for in your summons we hereby furnish you the month wise abstract of our clearances and tax payments for the period from 01.07.2017 to 30.11.2018. We will be furnishing the random sample copies of GST Bills, paper pouches and remaining documents to you within a week's time. ...." (Emphasis supplied) From the above extract of the Statement rendered voluntarily by the managing Partner ....