TaxTMI 
TaxTMI 
2022 (2) TMI 992
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..../s USG Boral Building Products (India) Private 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 w....
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....R OR OF COMPOSITIONS BASED ON PLASTER - Boards, sheets, panels, tiles and similar articles, not ornamented. 6809 11 00 -- Faced 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....
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.... • The distinction in classification of Board is made on the basis of materials used for reinforcement, i.e. with paper or paperboard only or any other material. • Boards which are reinforced with any other material are also may be classified tariff item 6809 19 00. In case of GRG Board as the name suggests that the board is Glass-fibre Reinforced 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....
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....entences are construed according to their grammatical meaning, unless that leads to some absurdity or unless there is something in the context, or in object to the statute to suggest the contrary. • This is the most widely used Rule of Interpretation in taxing statutes. There is plethora of judgement on this principle and settled proposition of law that taxing statutes are to be interpreted literally. - The Apex court in the case of CIT vs. T.V. Sundaram Iyyengar [1975] 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 th....
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....ormulated on the basic principle that classification of the goods for the purpose of levy of tax has to be made by a common man who knows the goods according to the meaning given to them in normal usage and it is likely that he might not be aware of the scientific or technical definitions. • The reason behind the usage of common parlance test has been very aptly described by the Hon'ble Rajasthan High Court in case of Assistant Commissioner, Anti Evasion, Rajasthan-I Jaipur vs. M/s Camlin Limited & Ors [MANU/RH/0974/2015] that "The sales tax enactment is 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 basi....
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....plicant is contemplating to manufacture would qualify as GRG board and is subject to GST at the rate of 12% as per Entry No. 92 of Schedule II of the Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT The Applicant seeks Advance Ruling on the following: a) Whether the new variant of gypsum board intended to be manufactured by the Applicant as per the specifications mentioned in Exhibit-2 could be classified as Glass-fibre Reinforced Gypsum Board (GRG Board) and charged to GST at the rate of 12%. b) Whether manufacture as per BIS standard IS-2095 is necessary' for all GRG board to be covered 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 P....
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....ine the classification of the proposed gypsum board, attention may be invited towards classification provided in the Indian Custom Tariff Act, 1975. Articles of plaster and compositions based on plaster are covered in Chapter 68 of First Schedule to Indian Custom Tariff Act, 1975. Same has been reproduced below: 6809 ARTICLES OF PLASTER OR OF COMPOSITIONS BASED ON PLASTER - Boards, sheets, panels, tiles and similar articles, not ornamented'. 6809 11 00 -- Faced 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 SL No 74 of the Schedule IV Notification No. 1/ 2017-Central....
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....lant is calcined in calciner at 140-150 degree centigrade at the rate of 15 MT/hr of calcined plaster. This calcined plaster is store in product silo having capacity of 250MT. • The plaster is then transferred to batch hopper by screw conveyors and through Entoleter in wall panel manufacturing area. • This area consists of 6 casting tables having dimensions of 3m x 12m, one crab having mixer and glass roving delivery system is for delivering slurry and glass roving for three tables. The chemicals are added in water & mixed and then plaster is added & mixed to form slurry. • One layer of slurry is laid on the table by the crab followed by a layer of glass roving. This glass roving is embedded in to the slurry with the help of screen roller. • Another layer of slurry is poured followed by a layer of glass roving this layer is pushed inside the ribs with the help of temping bar. Finally, a layer of glass roving is laid for the top face of the wall panel. • After getting final Gilmore wall panel is lifted from the casting table to ACROBA frame and shifted to dryer for drying. The wall panel is dried at a temperature of 27....