TaxTMI 
TaxTMI 
2022 (2) TMI 992
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....vate Limited, SP 73 75 76, RIICO Industrial Area, Khushkera, Bhiwadi, Alwar, Rajasthan (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under:- (a) Classification of any goods or services or both; Further, the applicant being a registered person (GSTIN is 08AABCL1984A1ZR as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1 SUBMISSION AND INTERPRETATION OF THE APPLICANT: 1. The Applicant is a Private Limited Company and has its office at SP 73 75 76, RIICO Industrial Area, Khushkera, Bhiwadi, Alwar, Rajasthan, 301019, registered in the state of Rajasthan vide GST Registration No. 08AABCL1984A1ZR. 2. The Applicant is engaged in the business of building materials and has its manufacturing operations in the state of Rajasthan and Andhra Pradesh, with major manufacturing activities based in the state of Rajasthan. Further, the Applicant has trading warehouses situated in ten states across India. 3. The Ap....
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....or reinforced with paper or paperboard only 6809 19 00 -- Other 6809 90 00 - Other articles The heading excludes:- (a) Plaster-coated fracture bandages put up for retail sale (heading 30.05), and plaster fracture splints (heading 90.21). (b) Panels, etc., agglomerated with plaster, of heading 68.06 or 68.08. (c) Anatomical models, models of crystals, geometric models, relief maps and other models, designed solely for demonstrational purposes, of heading 90.23. (d) Tailor's dummies, etc. (heading 96.18). (e) Original sculptures and statuary (heading 97.03)." As per the SI. No 74 of the Schedule IV Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017, rate of GST on articles of plaster such as Boards covered under Chapter Heading 6809 is as follows: Chapter/ Heading/ Subheading/ Tariff item Description of goods Rate 6809 Articles of plaster or of compositions based on plaster; such as Boards, sheets, panels, tiles and similar articles, not ornamented 18% * Therefore, all kind of plaster boards made up- of gypsum are covered under the aforesaid Tariff Heading. * However, Serial No. 92 of Schedule II of Notification No. 1/2017-Central Tax (Rate) d....
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....einforced Gypsum Board, the same would be appropriately classify under tariff item 6809 19 00. A2 Requirements to conform characteristic of GRG Board as per the Indian Standard - 2095 ('IS-2095') * Bureau of Indian Standards (BIS') prescribes quality standards on various products to give an assurance to the customers that the products bearing these standards meet a minimum level of quality in terms of durability, safe usage and like factors. Therefore, these standards are a benchmark of quality but not the definition of tin product itself. * It is pertinent to note that Bureau of Indian Standards (BIS) has notified IS-2095 in three parts wherein specifications of GRG boards are discussed in detail in Part 3. * Part 3 of IS 2095 has defined properties of GRG board in terms of material composition, method of manufacturing along with shapes of dimensions of GRG hoard. Furthermore. IS-2005 has specified tests like flexural strength test, moisture test etc. which are required to be satisfied by GRG board. * Now the question arises as to whether properties and tests specified by IS 2095 are mandatorily required to be satisfied in order to qualify as GRG board under t....
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.... 101 ITR 764 (SC) has held that if the language of the statute is clear and unambiguous, the Court cannot discard the plain meaning, even if it leads to an injustice. - Similar view was expressed in case of Commissioner of Income Tax-Ill v. Calcutta Knitwears, Ludhiana [(2014) 6 SCC 444] that while interpreting the provisions of a fiscal legislation should neither add nor subtract a word from the provisions of instant meaning of the sections. - In the case of Rakesh Kohli [(2012) 6 SCC 312], the principle was adopted that as long as there is no ambiguity in the statutory language, any interpretative process to the legislative intent becomes impermissible. > Applying the ratio of 'literal interpretation' in the instant case that the entry 92 to schedule II of GST Notification should be interpreted unconditionally i.e. in absence of requirement to meet any requirements of IS-2095 and reference should not be made to Part -3 of IS - 2095 to interpret the term GRG board. Accordingly, the term GRG board should be interpreted in its literal sense i.e. a gypsum board which has been reinforced with glass fibres by any method of engineering. A4. Rules of classification and re....
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....s one which touches the common man and his everyday life. Therefore, the terms in the said enactment must be in the manner in which the common man will understand them. In other words, the test is as to what a common man viewing or dealing with the article will understand it to be." The underlying principle behind usage of common parlance test is to understand a common man perception of the product. It is the common man who spreads the interpretation of terms used in law across the entire horizon i.e. from an urban area to a rural area and from being a literate person to be an illiterate person. It's this basic understanding of the goods which the legislature uses for the purpose of classification of goods for the purpose of levy of tax. * A similar view can be applied in the interpretation of the term "GRG board' where a common man perceives it as a gypsum board with reinforcement of either glass fibre without going into technical meaning or the properties of the product. * The Hon'ble Apex Court in case of Porritts & Spencer (Asia) Ltd. A vs State of Haryana [1979 AIR 300, 1979 SCR (1) 545] summarized the situation as "where a word has a scientific or technical m....
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....vered under the entry Serial No. 92 of Schedule II of Notification No. 1/ 2017- Central Tax (Rate) dated 28 June 2011? 3. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 28.07.2021 at Room no. 2.11 NCRB, Statue Circle, Jaipur. Shri Yogesh Gupta C.A. (Authorised Representative) alongwith Shri Vishal Dang (Accounts manager) of applicant appeared for PH. During the PH, they reiterated the submissions already made in the written application. They also made additional submission during the PH, which is related to case laws. 4. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdictional officer (Deputy Commissioner, Circle-II, SGST, Bhiwadi, Alwar, Rajasthan) has submitted his comments vide their letter which can be summarized ........................................................................................ ........................................................................................ ........................................................................................ 5. FINDINGS, ANALYSIS & CONCLUSION: We have considered the submissions made by the applicant in their application for advance ruling as well as the arguments/discu....
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....heading 90.21). (b) Panels, etc., agglomerated with plaster, of heading 68.06 or 68.08. (c) Anatomical models, models of crystals, geometric models, relief maps and other models, designed solely for demonstrational purposes, of heading 90.23. (d) Tailor's dummies, etc. (heading 96.18). (e) Original sculptures and statuary (heading 97.03)." As per the SL No 74 of the Schedule IV Notification No. 1/ 2017-Central Tax (Rate) dated 28 June 2017, rate of GST on articles of plaster such as Boards covered under Chapter Heading 6809 is as follows: Chapter / Heading/ Subheading/ Tariff item Description of goods Rate 6809 Articles of plaster or of compositions based on plaster; such as Boards, sheets, panels, tiles and similar articles, not ornamented 18% 2. Therefore, all kind of plaster boards made up of gypsum are covered under the aforesaid Tariff Heading. 3. However, Serial No. 92 of Schedule II of Notification No. 1/ 2017- Central Tax (Rate) dated 28 June 2017 provides specific rates for GRG board. The same has been reproduced below: Chapter / Heading/ Subheading/ Tariff item Description of goods Rate 44 or any Chapter The following goods, namely: a. Cement Bo....