TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 1106
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....l be binding only (a). On the applicant who had sought it in respect of any matter referred to in sub-section (2) of Section 97 for advance ruling; (b). On the concerned officer or the jurisdictional officer in respect of the applicant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the said advance ruling have changed. 4. Under Section 104(1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax A....
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....It is a tri-cycle applicable for the age ranging from 3-14 years. This tri-cycle has to be driven upon standing on one leg in the tri-cycle and pushing with the other leg. The direction of the tri-cycle shall be changed by turning the handle bar. The bottom of this tri-cycle is provided with battery provision for light and music. 2.1 They averred that in so far as the toys are concerned, they are classified under chapter heading 95.03 of the Harmonized commodity description and coding system. The chapter and heading are reproduced hereunder: 95.03 Tricycles, Scooters, Pedal Cars and similar wheeled toys; dolls' catridges; dolls; other toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds. 2.2. They stated further that under the GST, the above toys are further classified under the following tariff Schedules: Rates for Goods - Schedule II - (CGST 6%, SGST 6% Total 12%) (1) (2) (3) 228. 9503 Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys] and GST Rates for Goods - Schedule III - (CGST 9%, SGST 9% Total 18%) (1) (2) (3) 440. 9503 Electr....
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.... the batteries are provided for lights and sounds and not for mobility. 2. It is also an admitted fact that the entries in the notification with regard to the expression "Electronic Toys" are not defined. There is no definition of "Electronic Toys" in the notification or in the schedule to the Customs Tariff Act to which one has to take recourse for interpretation of the entries appearing in the notification. Again, this is clearly admitted in para.7.3 by the Authority for Advance Ruling. 3. When such is the case, the Authority for Advance Ruling committed a serious error by looking for a definition of 'toy' and the reliance placed by it in the Law Lexicon of Dr.Ramanatha Iyer is thus, misplaced. The issue under consideration is not relating to what is a 'toy'. 4. The Authority for Advance Ruling again committed an error in referring to the various standards applicable for these toys and in para.7.6 of the ruling a reference has been made to GB standard 19865-2005 which provides as mentioned below: "This Standard deals with the safety of toys that have at least one function dependent on electricity Toys using electricity for secondary functions are within th....
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.... music or light are not the primary purposes of these toys. 9. For these reasons, the Authority for Advance Ruling has erred in concluding that all the functions are to be seen and since there is an electronic circuit available in these toys for creating sound / flashing light, they are to be treated as "Electronic Toys". 10. In para.7.8 of the ruling the Authority has referred to the expression "Electronic Toys like tricycle, scooter, pedal cars" and has posed a question to itself as to when a pedal car will become an electronic toy. There are certain brands of cars which are electronically operated and also contain optional pedalling. A toy car will be an electronic toy when it is operated by battery for its mobility. There are numerous remotely controlled cycles, pedal cars etc. which are operated by electricity. The expression "Electronic Toys" should refer to such toys as they are understood in common parlance. 11. The Authority appears to have been misdirected itself into seeking legal definition of toys and the scientific meanings attributed to such toys by completely ignoring how these terms are understood in common parlance by the consumers and by the dealers who dea....
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.... Ltd. reported in 2009 (237) E.L.T. 225 (S. C.) the following observations have been made by the Apex Court in para.38 of the judgment. "38. ... Resort should, in the circumstances, be had to popular meaning and understanding attached to such products by those using the product and not to be had to the scientific and technical meaning of the terms and expressions used. The approach of the consumer or user towards the product, thus, assumes significance. What is important to be seen is how the consumer looks at a product and what is his perception in respect of such product. The user's understanding is a strong factor in determination of classification of the products ..." 14. In the case of Collector of Central Excise, Kanpur Vs. Krishna Carbon Paper Co. reported in 1988 (37) E.L.T. 480 (S.C.) the Apex Court has made the following pertinent observations in paragraphs 8, 9 and 11. "8. It is well-settled, as mentioned before, that where no definition is provided in the statute itself as in this case, for ascertaining the correct meaning of a fiscal entry reference to a dictionary is not always safe. The correct guide, it appears in such a case, is the context and the trade ....
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....e tasks of switching on/off the music etc. and that these functions are targeted to develop a certain skill while amusing the child playing with it. This observation and conclusion are highly subjective. A common man does not buy a tri-cycle for a child for developing discrete tasks of switching on/off a music in the tri-cycle. Similarly, a person 'does not buy a toy car to develop the skill of blinking. The primary purpose of buying a tri-cycle or toy car is for the physical activity to be undertaken by the child. The additional features do not change the character of a tri-cycle or a toy car. Two prominent examples can be cited in this connection. One relates to a walking stick equipped with a small torch. In this example, the torch fixed in the walking stick is an additional feature and if one wants to use only a torch, he will not buy a walking stick for using the torch. The second example is a smart phone which has features, including torch light, calculator and a camera. People intending to buy cameras or calculators or torch lights will not buy the mobile phone for those purposes because it has these features. Mobile phone is basically for the purpose of facilitating com....
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....e bar to change the direction this may not be considered as an electronic toy. This toy is provided with light in the handle bar and the music which is only a secondary provision. Though they contended that the toys are functioning independent of the electronic circuit provided therein, but the fact remains that the toys are equipped with such electronic circuit irrespective of the fact that they are for other functions. Activity Ride-on is a car toy applicable for the age ranging from 12 Months - 36 Months old. The toddler will be placed in the seat provided and has to be pushed by the other person for the movement and the steering provided shall be used for changing the direction. This toy is provided with electronic lights and music in the foi in of buttons present in the steering which is only a secondary provision. Though they contended that the toys are functioning independent of the electronic circuit provided therein, but the fact remains that the toys are equipped with such electronic circuit irrespective of the fact that they are for other functions. Smart Tri-Cycle is a tri-cycle toy which is applicable for the age range upto 18 months. The toddler has to be placed in ....