TaxTMI 
TaxTMI 
2024 (5) TMI 1005
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.... that the said goods should be classified under Customs Tariff heading 9603 1000 under Sr. no. 260 of Notification No. 01/2017 dated 28.06.2017 attracting 5% IGST. SR no. 144 of Notification No. 02/2017-IGST dated 28.06.2017 reads as follows: Sr. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods 144 9603 Muddhas made of sarkanda and phool bahari jhadoo In terms of above notification Muddhas made of sarkanda and phool bahari jhadoo are chargeable to NIL IGST. The revenue is seeking to classify the same under Sr. No. 260 of Notification No. 1/2017 integrated tax which reads as follows: Sr. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods 260 9603 10 00 Broomsticks Vide notification no. 28/2017-Central tax rate dated 22.09.2017, the description in the entry at Sr. no. 144 was substituted with following: "Muddhas made of sarkanda, Brooms or brushes, consisting of twigs or other vegetable materials, bound together, with or without handles" The dispute in the impugned case is if the product imported by the appellant falls under the category of Muddhas made of sarkanda, Brooms or brushes, cons....
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....ry was 'broom sticks' but the same were bound together. She argued that the appellant were of the opinion that unless and until the goods acted the shape of broom. The same have to be referred to as broom sticks. She argued that at the time of examination the goods were found to be bound together and therefore the exemption was granted. 2.5 She also relied on the clarification issued by CBEC Mitra Helpdesk. According to this opinion broom sticks in bound condition do not attract IGST. 2.6 Learned counsel argued that they were under bonafide belief that exemption benefit is available and therefore the claim thus same. She argued that in these circumstances penalty under section 114A cannot be imposed. 3. Learned AR relied on the impugned order. 4. We have considered rival submissions. We find that it is a fact that the product was described as broom sticks in the bill of entry. It is notice that the Commissioner (Appeals) in his order has recorded the entry 260 of Notification no. 1/2017-integrated tax dated 28.06.2017 and Sr. no. 144 of Notification no. 2/2017-integrated tax dated 28.06.2017, as part of the asseesse submissions. Thereafter, the Commissioner (Appeals) ha....
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....ugned order and remand the matter back to Commissioner (Appeals) to decide a fresh. 4.2 The first issue to be decided the appellant is, if the goods fall under the category of Muddhas made of sarkanda, Brooms or brushes, consisting of twigs or other vegetable materials, bound together, with or without handles or not . 5. All other issues arrived only after this issue is decided. SOMESH ARORA 6. I have the benefit of going through the order given by my Learned Brother. I find myself totally in concurrence with him both on the point of need for remand and deciding of classification before deciding other issues including on limitation and re-assessment by the party. However, I would like to elaborate on the need of 'classification first' pointed out in his order. Learned brother has correctly pointed out various tariff entries and tax notifications that were existing during the impugned period. It is to be noted that party had sought benefit of Notification No. 2/2017-integrated tax (Rate) dated 28.06.2017 which prescribed 'Nil' rate of duty' for the goods. While, the department treating all the Broomsticks as taxable imported during the relevant period (without deciding t....
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....i.e. material other than vegetative materials etc. In which category, the plastic brooms will normally get included. On this points, I am persuaded by the decision as reported in 2019 (22) GSTL 139 (A.A.R.-GST), In RE : ARISTOPLAST PRODUCTS PVT LTD. The observations which are relevant for the purpose of deciding classification are as follows: "6.1 We note that Broom stick is a cleaning tool consisting of usually stiff fibres (made of materials such as plastic) attached to, and roughly parallel to, a cylindrical handle, The broomstick is thus a variety of brush with a long handle. It is commonly used in combination with a dustpan for cleaning floors etc. 6.2 We further find in the GST Tariff that the heading 9603 which seems to be closer of the product in question, read as - Brooms, Brushes (Including Brushes Constituting Parts of Machines, Appliances Or Vehicles), Hand Operated Mechanical Floor Sweepers, Not Motorised, Mops And Feather Dusters, Prepared Knots And Tufts For Broom Or Brush Making; Paint Pads And Rollers; Squeegees (other than roller squeegees). 6.2.1 Therefore, it is very much dear from the reading of the main heading that the majo....