TaxTMI 
TaxTMI 
2022 (3) TMI 486
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....yance or packing of goods, of plastics" chapter heading 3923, subheading 392310 and Tariff item 39231090 as "Others" attracting rate of tax @ 9% each under Central and State Tax? 3. If the above product is not falling either under chapter 84 OR chapter 39, what is the appropriate classification of poultry crates and what is the rate of tax under Central, and State Tax? At the outset, we would like to make it clear that the provisions 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 2.1 M/s Nilkamal Limited, GSTIN: 27AAACN2329N1ZA, situated at 77/78, Nilkamal House, MIDC, Andheri East, Mumbai City, Maharashtra, 400093 is engaged in manufacturing of wide range of products used for storage, handling and transportation of goods, including products like plastic crates, poultry....
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.... an opening at the top. The opening can be of different sizes, but if it is too small there is a chance for physical injury, especially to the wings (Kettle well et al., 2000). Overall, the crate system offers a flexible, low equipment cost approach to manual loading and transportation of birds to the processing plant, but manual labour required is higher than in the other systems. Fixed crates Fixed crates are built into a truck and are an integral part of the trailer. In that case the birds have to be brought to the truck either manually or with a loader. The crates on the truck are usually arranged in two banks; each covers half of the truck's width. The number of crates depends on the size of the birds (e.g., chickens, turkeys). A common crate arrangement for broilers is eight layers of 12 crates each, or 96 crates total. The loading is done from each side of the trailer and requires that the birds be carried or walked from the barn and then either loaded directly or passed to another person positioned on the truck to allow filling of upper level crates. 2.5 In the case of turkeys, a conveyor system (loader), is commonly used to move the heavy birds to different cr....
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....ding which provides the most specific description shall be preferred to headings providing a more general description'. The said good are correctly classifiable under Chapter 84 of the GST Tariff as the same are differentiable from the general plastic containers for the following reasons:- • The said goods are specifically designed to transport live birds from farm to plants. • The said goods are used exclusively in poultry industry and not elsewhere. • The said goods are designed keeping into mind safety and other aspects related to live birds. 2.10 As per the judgment of C.C.E. v. Sharma Chemical Works 2003 taxmann.com 1240 (SC) it was observed by the court that "the main criteria for determining classification is normally the use it is put to by the customers who use it. In this case the above product is put to use as an appliance for transportation of live birds which classify it under heading 8436. Hence, it can be said that the product Poultry crate is not classifiable under Chapter 39 as plastic container /crates hence appropriate classification for the same is Chapter 84 sub heading 8436 attracting rate of tax @ 6% each under....
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....% (9% each under Central Tax and State Tax). Further, the judgments of Sun Export Corporation vs. Collector of Customs, Bombay [1997 (93) ELT 641 (SC) and C.C.E. Vs. Sharma Chemical Works 2003 taxmann.com 1240 (SC) are not applicable in this case. 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 14.09.2021. Authorized representative of the applicant, Shri. Vinod Kaushik, C.A., appeared, and requested for admission of the application. The Concerned jurisdictional officer was absent. 4.2 The application was admitted and called for final hearing on 08.02.2022. The Authorized representative of the applicant, Shri. Vinod Kumar, CA, was present. The Jurisdictional officer, shri. Praveen Kumar, Superintendent, Division-X, Commissionerate Mumbai East was also present Both the parties made oral submissions. The matter was heard. 05. OBSERVATIONS AND FINDINGS: 5.1 We have gone through the facts of the case, written and oral contentions made by both, the applicant and jurisdictional officer at the time of preliminary as well as the final hearings. 5.2 The basic issue before this authority is of classification of "poultry crates", manufactured by the applica....
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....ugned goods are poultry keeping machinery/equipment to be a covered under Chapter 8436 of the Tariff. 5.5.1 We now take up the next question raised by the applicant i.e. whether the impugned products are classifiable under Chapter 3923 of the Tariff. 5.5.2 Chapter 39 of the Tariff covers 'Plastics and Articles thereof'. Chapter 3923 of the Tariff covers 'Article for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics'. Further, Sub-heading 392310 covers "Boxes, cases, crates and similar articles". As per Explanatory Notes to Heading 39.23, this heading covers all articles of plastic commonly used for the packing or conveyance of all kinds of products. 5.5.3 The impugned product i.e. poultry crate is an article of plastic. It is used for the conveyance of poultry and from a reading of para 5.5.2 above it is clear that the said product is clearly covered under sub heading 392310 of the Tariff. However it is seen that the subject product does not fall under the T.I. 39231010; 39231020; 39231030; and 39231040. Thus, the impugned product will be covered under the residual T.I. i.e. 39231090 of the Tariff. 5.6.....