TaxTMI 
TaxTMI 
2021 (6) TMI 1130
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....sity Polyethylene. The applicant has in their application specified that this invention relates to the field of chemical engineering and Agriculture more particularly a system to design waterproof Trellis support for climbing plants with sturdy bamboo sticks by extending its life span by coating it with High-Density Polyethylene. High-Density Polyethylene is highly resistant to heat, light and water and other forces of nature along with to the stress caused due to pulling and the ability to bend to take the strain due to high winds. The details and specification of the said product has also been furnished as Annexure-1, It has further been specified by the applicant that this invention comprised of a design and mechanism of a trellis support made using bamboo coated with High-Density Polyethylene which is highly resistant to heat, light and water and other forces of nature along with to the stress caused due to pulling. High-Density Polyethylene protects the encased bamboo material from rapid weathering, thus taking advantage of both that is the strength and tensile strength of bamboo and the rugged nature of HDPE respectively. The design has been equipped with a ground anchor to h....
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....self-drilling mechanism.to get the frame easily grounded for the plantation of climber plant. 2.3 Based on the details furnished, the applicant have themselves summarized their product as under:-, (a) A Trellis support consists of bamboo sticks coated with High-Density Polyethylene to make the bamboo weather proof and to avoid rotting and breaking under any pressure or stress of pulling or others. (b) The bamboo sticks in a Trellis support are coated with High-Density Polyethylene making it resistant to heat, light and water and other forces of nature. (c) The Trellis support has self-drilling mechanism designed into a ground anchor for self-installation of the post. (d) The Trellis support has the ground anchor made using Nylon 66 plastic with glass filled raw material. 2.4 It is in this back drop, that the applicant is seeking ruling regarding GST classification of their aforesaid product named ''Waterproof Trellis support for climbing plants manufactured by using bamboo and High-Density Polyethylene". 3. Contentions of the applicant:- 3.1 That, as per Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017, Sr.No. ....
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....anchor for self-installation of the post and it has the ground anchor made using Nylon 66 plastic with glass filled raw material. The applicant in their instant application before us, has opined that the said "Waterproof Trellis support for Climbing plants using bamboo and High-Density Polyethylene" is a tool used in agriculture, horticulture or forestry meriting classification under heading 8201 of Custom Tariff Act, 1975, in terms of Sr. No. 137 (HSN 8201) of Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017 attracting NIL rate. 5.2 Thus we proceed to discuss the issues involved regarding classification of their above said product and its applicability to the exemption as provided under Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017. We have carefully considered the various submissions made by the applicant and the applicable statutory provisions. The issue before us for determination is whether their product named 'waterproof Trellis support for climbing plants using Bamboo and High-Density Polyethylene' supra, falls under ''Tariff item"/ "sub-heading"/ "heading" / "Chapter" 8201, eligible for exemption from GST as a tool used ....
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....8-6-2017) 5.4 In the aforesaid context, there remains no ambiguity as regards the fact that the impugned product of the applicant named as 'waterproof Trellis support for climbing plants using Bamboo and High-Density Polyethylene', is bamboo treated with High density polyethylene solely with an aim to make it resistant to heat, light and water and other natural eventualities so as to enhance the life of this bamboo support to ensure the required sturdiness, preventing it from breaking or to make it break resistant. This treatment of bamboo avoids it from any impact due to climate change extending the life spans of the support by avoiding rotting at the grounded end. Besides this for easy installation of the poles, it has been equipped with a ground anchor which has a self-drilling mechanism to get the frame easily grounded for the plantation of climber plant. AM this is very well evident from the technical data about their product, as furnished by the applicant as discussed above. 5.5 It will also be not out of place to mention here that classification of goods for the purposes of GST is based on the entries in the First Schedule to the Customs Tariff Act, 1975. Also ....
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....ND SIMILAR HEWING TOOLS; SECATEURS AND PRUNERS OF ANY KIND ; SCYTHES, SICKLES, HAY KNIVES, HEDGE SHEARS, TIMBER WEDGES AND OTHER TOOLS OF A KIND USED IN AGRICULTURE, HORTICULTURE OR FORESTRY. 8201 10 00 - Spades and shovels kg. 8201 30 00 - Mattocks, picks, hoes and rakes kg. 8201 40 00 - Axes, bill hooks and similar hewing tools kg. 8201 50 00 - Secateurs and similar one-handed pruners and shears (including poultry shears) kg. 8201 60 00 - Hedge shears, two-handed pruning shears and similar two-handed shears kg. 8201 90 00 - Other hand tools of a kind used in agriculture, horticulture or forestry kg. 5.7 On perusal of the above Section notes, Chapter Note and Chapter heading, it gets amply clear that 'Base metals and articles of base metals' are only covered under Section XV of the Customs Tariff Act. Further as per Section Note 3 'Base metals' means "iron and steel, copper, nickel, aluminium, lead, zinc, tin, tungsten, molybdenum, tantalum, magnesium, cobalt, bismuth, cadmium, titanium, zirconium, antimony, manganese, beryllium, chromium, germanium, vanadium, gallium, hafniu....
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....ade, working edge, working surface or other working part is of base metal, of metal carbides (see the Explanatory Note to heading 28.49) or of cermets (see the Explanatory Note to heading 81.13); provided, however, that this condition is met, they remain in the Chapter even if fitted with non-metallic handles, bodies, etc., of a weight exceeding that of the metallic working part, (e.g., a wooden plane with a metal blade). The Chapter also, however, includes tools if the working part is of natural, synthetic or reconstructed precious or semi-precious stones (e.g., black diamonds) fitted onto a support of base metal, metal, carbides or cermets; further, in certain cases, the working part may be of base metal fitted or covered with abrasive materials. There are exceptions to these general rules in the case of certain articles specifically mentioned in the headings (e.g., portable forges and grinding wheels with frameworks). Moreover, very few abrasive tools remain in the scope of the Chapter (see the Explanatory Notes to headings 82.02 and 82,07), since heading 68.04 covers grinding wheels and the like (including grinding, sharpening, polishing, trueing and cutting wheels, heads....
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....Classification under a Heading is to be governed only by the relevant Tariff-entries, Heading-description, etc. Heading 8201, does not envisage that all items used in an agriculture field would be covered therein. The instant product can also not be classified under 8201 as Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry. We find no rationale in the opinion put forth by the applicant in as much as, assuming but not acceding if the said interpretation of applicant is considered then even the wire fence used for a boundary in agricultural field would also qualify being termed as agricultural tool/ implements. The impugned product is purely a support made of bamboo for creeper vegetables/ crops. Thus we come to the conclusion that the applicant is not eligible for exemption from tax on the said waterproof Trellis support for climbing plants using Bamboo and High-Density Polyethylene', provided under Notification no. 2/2017-Central Tax (Rate), dated....