2023 (1) TMI 977

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....ed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab-initio in accordance with Section 104 of the Act. 5. 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 Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. EMS COCOS, having registered office at No. 3/1, Pottaiyandipuram, Mulaikadai, Potayandiporambu, Sokkanur, Kinathukadavu, Coimbatore,642109, is a partnership concern, engaged in the activities of Manufacturing and Trading of Coconut, Copra and coconut shells. M/s EMS COCOS (hereinafter called the 'Applicant') is registered under the GST with GSTIN:33AAIFE2739G1ZL. The Applicant has sought Advance Ruling on the following question: "Whether the dried coconuts (shelled or peeled) used for human consumption shall be classified under Chapter 8, ....

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....he query regarding how the decision is taken whether to use the copra for human consumption or for oil extraction, the AR replied that it is decided based on the moisture content and that segregation depends on the orders. The AR was asked to submit documents relating to the process undertaken in respect of edible copra, FSSAI certificate for dealing with edible product and invoice copies for both edible copra and milling copra along with purchase order copies. The Applicant submitted the following documents which were received on 14.07.2022. i. Copy of FSSAI license number 10021042000308 dated 20.02.2022 (renewal license) valid upto 07.02.2023 ii. Tax invoice -document no. SL-01-046 dated 15.05.2022 iii. Purchase order no. 4504207052 dated 25.04.2022 iv. Tax invoice -document no. SL-01-044 dated 13.05.2022 v. Purchase order no. 4504207050 dated 25.04.2022 vi. Tax invoice -document no. SL-01-064 dated 28.05.2022 vii. Purchase order no. 4504219544 dated 19.05.2022 viii. Tax invoice -document no. SL-02-0198 dated 24.05.2022 ix. Purchase order no. 0015/2022-23 dated 23.05.2022 x. Tax invoice -document no. SL-02-0951 dated 26.03.2022 xi. Purchase order no. 00428/2....

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....ar No. 163/19/2021-GST dt.06.10.2021, has stated that Copra, classified under heading 1203, attracts GST rate of 5% vide entry at S.No. 66 of Schedule I of 1/2017-Central Taxes (Rate) dated 28.06.2017, irrespective of use. Hence, it is seen that the subject goods, irrespective of its use, has to be considered as Copra and classified under heading 1203 attracting 5% GST. 4.1 The State Jurisdictional authority, namely, the Pollachi rural Assessment circle has not offered any remarks on the questions raised by the applicant in the Advance Ruling Application. It is construed that there are no proceedings pending on the questions raised by the applicant in the Advance Ruling Application. 5.0 We have carefully examined the statement of facts, supporting documents/photographs filed by the Applicant along with application, submissions made at the time of Personal hearing and thereafter the comments of the Central/State Jurisdictional Authority. The Applicant is engaged in the activities of Manufacturing and Trading of Copra, Coconut, and coconut shells. The Applicant is before us seeking ruling on the following question: Whether the dried coconuts (shelled or peeled) used for human cons....

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.... soft, while other copra which are irregular shape, dusty are sent as milling copra. A dried coconut for human consumption can also be used for milling purpose, therefore the basis of determination of GST rate on the basis of end use is not appropriate in terms of classification of the product. 5.6. Further, Ministry of Finance vide Circular 163/19/2021-GST dated 6th October 2021 had issued clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 45th meeting held on 17th September, 2021 at Lucknow. The relevant portion of the clarification is as under: "5. Clarification of definition of Copra: 5.1. Representations have been received seeking clarification regarding the definition of Copra and applicable GST rates. 5.2 As per Explanatory Notes to HS (2017 edition) to heading 1203, Copra is dried flesh of coconut generally used for the extraction of coconut oil. Coconut kernel turns into copra, when it separates from the shell skin, while still being inside the shell. The whole unbroken kernel could be taken out of shell only when it converts to copra. Once taken out of shell, copra could be supplied either whole or brok....