TaxTMI 
TaxTMI 
2024 (1) TMI 120
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.... Extn. Jaipur, 302022 Rajasthan (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under: (a) Classification of any goods or services or both;. A. SUBMISSION OF THE APPLICANT: (in brief) * M/s Supreme Gums Private Ltd. G 997 to 1000, Sitapura Ind. Area Extn. Jaipur, 302022 Rajasthan (hereinafter the applicant), Manufacturers and supplies guar gum powder and other ancillary products for a range of applications in the industries sectors including construction, textile, cosmetics, pharmaceuticals, paper, oil well drilling, mining and explosive. * Applicant proposes to manufacture a new product which is a liquid suspension of guar gum powder (suspended in Mineral oil). The product is most commonly known as guar gum slurry and it has application in oil and gas industry in the process of hydraulic fracturing. * The suspension of guar gum powder is made with the help of mineral oil, special clay, and surfactant which keeps the suspension stable and do not allow guar gum powder to settle down and separate out of the suspension. The manufacturing process is as under- 1. Firstly, add mineral oil 50 liters (HS....
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....licant submitted vide mail which is as under "In continuation of our endeavor to receive an advance ruling from your honor in relation to a new product to be developed by our client M/S Supreme Gums P Ltd., we wish to submit to your honor, the registration certificate and GST return copies. Further, we wish to submit that during our last PH, we were asked to arrange a meet with the person most relevant to discuss the composition of the product so that your honor reach on an appropriate conclusion. For that matter, we request you to provide us a day and a time on which we can come up with the person concerned and discuss the product details". Applicant also submitted GSTR-1 return for March 2023 and GSTR-3B return for March 2023 along with registration but has not disclosed the HSN Code and product detail neither in registration certificate nor in registration. E. COMMENTS OF THE JURISDICTIONAL OFFICER Comments received from the Dy. Commissioner, CGST, Division-F, Sector 10, Vidhyadhar Nagar, Jaipur vide letter C.No. V(16)91/Tech/Misc/Div-F/2012/1316 dated 07.11.2022 are as under: - Chemical Description Environmentally friendly and biodegradable guar slurry is made from the gua....
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....l oil) must also fall under the Chapter 13 of the First Schedule to Customs Tariff Act, 1975 and accordingly the GST rate shall be applicable. F. FINDINGS, ANALYSIS & CONCLUSION: At the outset we would like to make it clear that the provisions of CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act 1) We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral and written submissions made at the time of hearing and the comments of the Central Tax Authority. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. We would like to discuss the submission made by applicant and will take up the above question for discussion one by one. 2) The applicant i.e M/s Supreme Gums Private Ltd. G 997 to 1000, Sitapura Ind. Area Extn. Jaipur, 302022 Rajasthan (hereinafter the applicant), Ma....
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....e to the Customs Tariff Act, 1975, and the Rules of interpretation therein are to be followed for classifying a product, in terms of Explanation 1 and 2 to Notification No. 1/2017-Compensation Cess (Rate), dated 28-6-2017. 5) As per the, Applicant, since the product is primarily a mineral oil-based liquid product of guar gum powder which contains more than 50% mineral oil and has application in oil and gas industries, the applicant is of the view that such product shall be classified under chapter 27 of the first schedule of customs tariff act 1975 and accordingly the GST rate shall be applicable. We find in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) the CHAPTER 27 pertains to - Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes Further in the notes it is mentioned that -NOTES : 1. This Chapter does not cover: (a) separate chemically defined organic compounds other than pure methane and propane which are to be classified in heading 2711; (b) medicaments of heading 3003 or 3004; or (c) mixed unsaturated hydrocarbons of heading 3301, 3302 or 3805 SUPPLEMENTARY NOTE : In this Chapter, reference to any sta....