TaxTMI 
TaxTMI 
2022 (12) TMI 1290
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....riendly expandable paper wrap (honeycomb paper for wrapping) is 48239013 or 48084090 ?' 3. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. 4. The applicant has submitted that- (1) They are undertaking a process to prepare eco-friendly expandable paper wrap (replacement of bubble wrap) from kraft paper and to sell the same in open market. (2) First they prepare the core material by using the two or more sheets of honeycomb like structure kraft paper which is glued together in an alternate glue strip pattern to create structure of multiple layers of kraft paper in vertical direction. These corrugated layers open out in the form of continuous honeycomb like grid with center of each corrugated strip attached to another layer of corrugated strip upon expansion. Depending upon the product being packed with this material, multiple paper honeycomb wrap may be glued together to make specific design of packing material. (3) These paper honeycomb used in the primary packing of goods as a cushioning material, separators or edge....
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....or perforated 4808 90 00 Other (5) Considering essential element kraft paper being 80-90% raw material in the honey comb wrapping paper, appropriate chapter heading will be 4808 for charging GST. (6) Contrary to this, chapter heading 4823 is more towards the residual paper, paperboard, or other residual articles of paper pulp, paper, paperboard etc. and relevant extract is reproduced below. 4823 OTHER PAPER, PAPERBOARD, CELLULOSE WADDING AND WEBS OF CELLULOSE. FIBERS, CUT TO SIZE OR SHAPE OTHER ARTICLES OF PAPER PULP, PAPER, PAPERBOARD, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBERS (7) Accordingly, specific classification for a product made up of kraft paper will be 4808 and not 4823 since later category is for residual paper and its articles which are not falling under any specific heads. Specifically, 48089000 will be apt classification to honeycomb wrapping paper and consequently GST rate will be 12% as per prevailing rate on the date of filing this application. 6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Assistant Commissioner, CGST & Central Excise Division....
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.... consideration on merits. 10. The applicant is undertaking a process to prepare eco-friendly expandable paper wrap (replacement of bubble wrap) from kraft paper and to sell the same in open market. The applicant has sought advance ruling as to "Whether HSN applicable to eco-friendly expandable paper wrap (honeycomb paper for wrapping) is 48239013 or 48084090?" 11. At the outset we must understand what is meant by paper- The word not having been defined either in the CGST Act or UPGST Act or the Rules made there under, it has to be understood according to well established canon of construction in the sense in which persons dealing in and using the article understand it. It is, therefore, necessary to know what is paper as commonly or generally understood. 11.1 The said word is explained in The Shorter Oxford Dictionary [Volume 2 (Third Edition)] as- "a substance composed of fibres interlaced into a compact web, made from linen and cotton rags, straw, wood, certain grasses, etc. which are messed into a pulp, and pressed; it is used for writing, printing, or drawing on, wrapping things in, for covering the interior or walls, etc." Encyclopaedia Britannica says - "Paper, the gene....
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.... and greaseproof paper are included in packing material. '[Deepak Agencies v. Assistant Commercial Tax Officer, (1993) 90 STC 376 (Raj), decided on 8.1.1992, by the Rajasthan High Court] Henceforth, the intended use of the material in question should be the guiding factor for deciding the classification of the commodity. 14. The description of Chapter subheading of 4808 of the first schedule to the Customs Tariff Act, 1975 is as under- 4808 PAPER AND PAPERBOARD, CORRUGATED (WITH OR WITHOUT GLUED FLAT SURFACE SHEETS), CREPED, CRINKLED, EMBOSSED OR PERFORATED, IN ROLLS OR SHEETS, OTHER THAN PAPER OF THE KIND DESCRIBED IN HEADING 4803 4808 10 00 - Corrugated paper and paperboard, whether or not perforated 4808 40 - Kraft paper, creped or crinkled, whether or not embossed or perforated: 4808 40 10 - Sack kraft paper, creped or crinkled, whether or not or perforated 4808 40 90 Other kraft paper, creped or crinkled, whether or not embossed or perforated 4808 90 00 Other 15. From the above, it is clear that the Tariff item 4808 covers Paper and Paper Board which is corrugated, creped, crinkled, embossed or perforated in rolls or sheets and there is no mention of any pac....
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....f goods in this Schedule shall be governed by the following principles- 1....... 2 (a)........ (b) .................The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) ............... 20. As per Rule 3(a) of General Rules for the Interpretation of Import Tariff, the heading which provides the most specific description shall be preferred to headings providing general description. The Tariff item 48239013 contains specific description of Packing and wrappi....