TaxTMI 
TaxTMI 
2021 (10) TMI 204
X X X X Extracts X X X X
X X X X Extracts X X X X
....rovisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any 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, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by the applicant are as under:- 2.1 M/s. Aludecor Lamination Private Limited, the applicant having its registered office at No.1, R. N Mukherjee Road, 5th Floor, Room No.52, Kolkata-700001, India also has place of business at Suit No. 4501, 4th Floor; Cello Triumph, l B Patel Road, Goregaon East, Mumbai - 400063 and holds valid registration under CGST Act, 2017. 2.2 The applicant is engaged in manufacturing of Aluminium Composite Panel/ sheet, (herein after referred as "ACP Sheets") in Haridwar, Uttarakhand, India. The applicant has place of business in Maharashtra at the address declared in the application for Advance Ruling under Rule 98 of Goods and Service Tax Rules, 2017. In common parlance the product....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the plastic sheet extruded in the process. This plastic adhesive film is melted and helps Aluminium foils/coils to be laminated on the plastic sheet extruded. Further, this plastic sheet/core material laminated with adhesive film, passing through the composite section where Top & Bottom coated Aluminium foils/coils of particular thickness are laminated on both the sides of the plastic core/sheet. Finally the plastic sheet laminated with Aluminium foils/coils passes from cooling section. After cooling section a plastic protective film is laminated on decorative side or top coated Aluminium foils/coils of the ACP sheet and then the ACP sheet reaches at cutter section where it can be cut into the required lengths as per order from specific customer or cut to standard length of 8 feet, 10 feet or 12 feet. The same is stacked, one above another, and then shifted to dispatch area as ready for delivery after pre-dispatch-inspection process. A schematic diagram of ACP manufacturing process is given below: Schematic Diagram of ACP Manufacturing Process ACP Product Information Sr.No. Parameters 1 ACP Product Thickness 3 (mm) 4mm 6mm 2 Top & Bottom Alumi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ic and its different products. It does not speak for any other goods other than plastic. Yet certain products are not covered under this chapter heading; 3920 Other plates, sheets, films, foil and strip of plastics, Non-cellular and not reinforced, laminated, supported or similarly combined with other material CETH 7606 Chapter heading 76 dealers with Aluminium and different products made from Aluminium. For further clarification, one has to refer following meaning of the product; 7606 Aluminium plates, sheets and strip, of thickness exceeding 0.2 mm. CETH 7610 : CETH 7610 reads as under in Central Excise Tariff Act. Sr. No. Central Excise Tariff Entry Description of Goods 1 7610 Aluminium structures (Excluding prefabricated building of heading 9406) and parts of structures (For example, bridges and bridge sections, towers, lattice masts, roofs, roofing, frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns) Aluminium plates, roads, profiles, tubes & the like, prepared for use in structure. CETH 7308 This chapter heading deals with products manufactured from Iron and steel having the same des....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... buildings, to improve water/heat/dust resistances and aesthetic appeal - Mechanical properties like bonding strength, thermal resistance, water absorption etc. attributable to Aluminium sheet - HELD : Classification has to be determined by essential character test and not by percentage of composition - Goods classifiable under sub-heading 7610.90 of Central Excise Tariff, and not as plastic material under sub-heading 3920.99 ibid. - Panel is used to improve water resistance, heat resistance, dust repelling property etc. of a building as also to impart an aesthetic appeal to it. By 10 stretch of imagination can it be said that these purposes would be attained by the polyethylene sandwiched between the Aluminium sheets: {paras 4, 5, 6) 2010 (260) E.L.T. 301 (Tri.-Del.) FLEX INDUSTRIES LTD. V/s COMMR. OF CEN. EX., NOIDA "Demand" - Limitation - Misdeclaration - Fact that product in question was coated by plastic on both sides not disclosed by appellants in the declaration filed in the year 1995-1996 - Supreme Court decision delivered on the issue in the year 2005 merely reiterates the generic meaning of the word used in tariff statute - Ruling of Apex Court cannot be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the ground that the Aluminium composite panel manufactured by the appellant is distinct from the ACP sheets imported by them. The appellants contended that they were carrying on the activity of cutting and routing (i.e, cutting the grooves) or ACP material and such activity did not bring into existence new product and it was not known in the market as a separate product with a distinct name, character and use and hence, they submitted that the item on carrying on the activity of the process of cutting and routing, did not produce new goods. This plea has been rejected by the authorities on the ground that the Aluminium sheets in running length when they are cut and routing would be classifiable under the Tariff Heading 76.10 of CET, which reads as follows: Aluminium structures (Excluding prefabricated buildings of Heading No. 94.06) and parts of structures (For example) Bridges, and Bridge sections, Towers, Lattice Masts, Roofs, Roofing frameworks, Doors & Windows and their frames and thresholds for doors, Balustrades, Pillars and Columns): Aluminium plates, rods, profiles, tubes and the like, prepared for use in the structures. COMMISSIONER OF C. EX. VS. TETRA PA....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ind that the Ld. Commissioner takes support of the decision in the case or kemrock Industries (supra) wherein it was held that the classification should be decided on the basis of essential characteristic of the product and not on the basis of predominant material used for the manufacture, We find that in the said judgement it was not the case of essential characteristic based on the end use of the goods whereas the issue was whether the plastic is predominant or the glass fibre is predominant as per the strength of the goods. Since the plastic has major role therefore, the product has decided under Chapter 39. In the present case, the rival entry is 70:14 which is based on the predominant of the material used and 84.21 which is on the basis of end use. Accordingly, the case of Kemrock Industries (supra) is not directly applicable in the fact of the present case. We also observed that there is no dispute that the product in question in the present case is FRP glass fibre vessel wherein the predominant material is glass fibre. Therefore, it will be preferably classifiable under Chapter 70.14. We also perused that as per Note 2 (a) to Section XVI of CETA which reads as under: ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed Representative, appeared and made oral and written submissions. Jurisdictional Officer Shri Machhindra Patil, Superintendent, Range-!, Div 7, Mumbai East was also present and made oral & written submissions. Applicant requested for time to produce sample invoices and challans issued for making outward supply from Mumbai in respect of impugned goods. 4.3 We heard both the sides. 05. DISCUSSIONS AND FINDINGS: 5.1 We have perused the documents on record and oral/written submissions made by both, the applicant as well as the jurisdictional officer. 5.2 The only issue before us is regarding the classification of the product Aluminium Composite Panel/sheet, (herein after referred as "ACP Sheets") supplied from Mumbai address by the applicant to its customers. The applicant has a factory situated in Uttarakhand. The said products are received from their factory or from the other places of business situated in India as branch transfer and sold by the applicant in Maharashtra. The applicant has place of business in Maharashtra at the address declared in the application for Advance Ruling under Rule 98 of Goods and Service Tax Rules, 2017. 5.3 The applicant has submitted th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures. 5.7.2 It is seen that Heading 7610 covers Aluminium structures and its parts; aluminium plates, rods, profiles, tubes and the like, prepared for use in structures. 5.7.3 The applicant has submitted that the subject product is used: in construction of Commercial buildings to be used on outside walk for protection from heat, water proofing, in Railways in coach building ; in signage Industries for manufacturing of advertisement boards, name boards etc. ; in passenger ship building industries, in manufacturing of Furniture and Fixture ; in automobile Industries in manufacturing of passenger motor vehicles and in interior decoration, etc. 5.7.4 The submissions made by the applicant do not support the fact of the subject product being termed as Aluminium Structure and/or parts thereof. From the facts and submissions before us we find that the subject product is not covered by the Tariff Heading 7610. 5.8.1 The third alternative heading submitted by the applicant is 7606 of the GST Tariff. We find that the subject product is covered by the decision of the Hon. Tribunal ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7000099 dated 04.03.2020, issued by M/s Aludecor Lamination Pvt. Ltd, West Bengal. iv) Invoice No. 2407000281/242000163 dated 04.03.2020 and 16.03.2020 respectively, issued by M/s Aludecor Lamination Pvt. Ltd, Nagpur, Maharashtra. 5.9.2 Whereas in Sr. No.(i) the Item Description in all the invoices, issued by the applicant is mentioned as 'Metal Composite Panel', in the remaining invoices, such Item Description is not shown. However, all the invoices are reflecting HSN Code as 7606 in respect of the concerned goods. 5.10.1 The applicant has submitted a few case laws in their application but most of the referred case laws are not applicable in the instant case because the facts of the matter in the said case laws are different from the matter at hand. However the following case laws cited by the applicant are taken up for discussion as under: 5.10.2 R K Corporation VA Government of Karnataka & Others (2009) 21 VST 386 (KAR) In the said case, the Petitioner filed an application under the Karnataka Value Added Tax, 2003, to clarify the rate of tax applicable on the sale of ALUMINIUM COMPOSITE PANEL. Thereafter a clarification dated 02.02.2006 was issued by the Commis....