TaxTMI 
TaxTMI 
2018 (11) TMI 1827
X X X X Extracts X X X X
X X X X Extracts X X X X
....vision (DTA Unit), which manufactures "Insoluble Sulphur", both of which are under common GST registration No. 6AAAC03006F221 and are currently assigned to State jurisdiction of Proper Officer of ward 5, Rewari in the office of DETC (ST), Rewari. In addition to the above two units, the Company is having one manufacturing unit at SEZ, Mundra, Kutch, Gujarat which also manufactures "Insoluble Sulphur". 3. As submitted in the application for advance ruling, applicant is sole manufacture of "Insoluble Sulphur" in India and is clearing this item in domestic market as we as exporting it under ITC HS 2802. As further submitted by the applicant, some of its overseas customers from countries like Thailand, Mexico, Espania and Europe have raised concern that they are facing problem in clearing "Insoluble Sulphur" under ITC HS 2802 00 10 from their respective custom authorities which are insisting to change the classification to other tariff entries. 4. The applicant states that custom authorities in different countries are cleaning "Insoluble Sulphur" under following tariff entries:- Thailand 3812 39 30 Mexico 3824 90 90 Espania (Spain) 2503 00 10 Europe 2503 00 90 & 4005 91 90....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r physical and chemical properties though all are vulcanizing agents but have different usage based upon the requirements of customers. 8. It is also stated by the applicant that it shall keep on classifying Insoluble Sulphur cleared in domestic area under ITC HS 2802 00 10. However, since different HSN codes are stated to be used for Insoluble Sulphur in different countries, the applicant also wishes to use different ITC HS code for different countries based upon the requirement of customers from different countries. It is apprehended by the applicant that in the absence of change in ITC HS codes, it will suffer an irreparable loss in business. 9. The applicant has stated that all the domestic clearances shall be continued to be made under the ITC HS Code 2802, which attracts GST @ 18%. It is also stated by the applicant that it is not getting any additional export benefit by changing the classification of these products based upon the requirements of different customers in different countries. In case any additional benefit is available on the basis of changed classification, applicant undertakes in the application to relinquish such benefit. Question for Advance Ruling 10. I....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y be used by rubber industry for giving strength to their products, especially the tyre manufacturing industry which use these as vulcanising agents. In this way the product is correctly classifiable under heading HSN 3812 39 30 as vulcanising agent for rubber. The applicant was asked to submit written documents, duly signed by competent authorised person, in support of its averments, which were duly submitted and placed on record after thorough examination. The judgment was reserved in the matter, which is released today. Comments of the concerned officer under sub-section (1) of section 98 of the CGST/HGST Act, 2017 14. The concerned officer was asked to submit his comments on the application. In response, DETC (ST), Rewari submitted his comments vide his office memo number 4004/DTI, date 16.11.2018. In his comments, DETC (ST), Rewari confirmed the factual position as narrated by the applicant. Regarding merits, he stated that the matter is of complex nature and is to be decided by higher authorities, hence beyond his jurisdiction. Discussions and Findings of the Authority 15. Coming to the question raised in the application, a clarification is sought that whether Applicant c....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... list of tariff provisions accompanying eight digit number and the rate of customs duty. 18. Now, it is also important to understand the scheme of classification of goods by used by various custom authorities across the world. The Harmonised System of coding of Goods (H.S. Code) is a universal coding system that has been developed by World Customs Organization which is now uniformly applied by more than 200 countries worldwide. The Harmonised system comprises of "General Rules for the interpretation of the Harmonised System", "Section and Chapter Notes, including Sub-heading Notes" & "A list of headings arranged in systematic order and, where appropriate, subdivided into subheadings". This code classifies goods at 4 digit level called heading and further at 6 digit Ievel called sub-heading (four digit heading followed further by two digits). Customs department of more than 140 major countries have been functioning on the basis of the said 6 digit tariff code. The Indian Trade Classification, also known as Indian Tariff Code (ITC) has 8 digit classification, which has been designed in a way without any modification of first 6 digit as per H.S. code system, but followed by another....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....st rule of classification. It specifies the elements that can legally be used to classify products. These identified elements are the terms of headings, Section or Chapter Notes, and if not classified by the two elements above, the remaining General Interpretative Rules. General Interpretative Rule 2 is in two parts. It seeks to ensure that articles and products are not left unclassifiable by reason of being incomplete, unfinished, unassembled or disassembled, mixed or made of multiple materials. General Interpretative Rule 3 provides classification principles for goods which, prima facie, fall under two or more headings. It has three parts which are applied sequentially until a classification is determined. General Interpretative Rule 4 deals with goods which (for example because they have just appeared on the world market] are not covered by any heading of the Harmonized System, even by the material that they are made from. In the unlikely event it is needed, this GIR provides for classification with the goods to which are most similar in nature General Interpretative Rule 5 relates to containers and packaging for goods. Finally, General Interpretative Rule 6 requires the who....