TaxTMI 
TaxTMI 
2026 (3) TMI 1196
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctify any error apparent on the face of the record, if such error is noticed by the Appellate authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant within a period of six months from the date of the Order. Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the appellant has been given an opportunity of being heard. 2. Under Section 103(1) of the Act, this Advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only:- (a) on the applicant who had sought it in respect of any matter referred to in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erred to 'the Act') by M/s. LINK UP TEXTILES PRIVATE LIMITED, (hereinafter referred to as 'Appellant'). The Appellant was registered under the GST Act vide GSTIN 33AAACL1248E1Z2. The appeal was filed against the Order No. 42/AAR/2025 dated 08.10.2025 passed by the Tamil Nadu State Authority for Advance Ruling (hereinafter referred to as 'AAR') on the Application for Advance Ruling filed by the Appellant. 3. The Appellant is a Private Limited company under the administrative control of 'Centre' and they are engaged in exporting Men's Pyjama Set consisting of a top (Kurta/Shirt) and bottom (Pyjama/Trouser) made of cotton, (TOP-67% Cotton, 29% Polyester, 4% Spandex Woven Shirt; Bottom - 67% Cotton, 29% polyester, 4% Spandex woven pant) in 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3) The pack MRP and invoice/billing show the unit of sale is the set (or a multi-pack comprising two sets) not loose individual garments 4) Once the goods are a retail 'set', the rate must be tested 'per set'. The 2-set value pack does not convert the goods into independent pieces; it remains a multi-pack of sets with a single MRP. 5) On facts, the effective per set value exceeds Rs. 1,000; therefore, the applicable rate is 12% and not 5%. 6) The relevant unit is a "set" and the applicable rate is 12% (6% CGST + 6% SGST) under S.No. 224 of Schedule II to Notification No. 1/2017-Central Tax (Rate), where the sale value per set exceeds Rs. 1,000/ -. 7) As the Appellant has already discharged tax and claimed....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 7.2 We note that the appellant is engaged in the business of exporting Men's nightwear Pyjama set consisting of a top (kurta/shirt) made of cotton (i.e. Top-67% Cotton; 29% Polyester: 4% Spandex Woven Shirt) and bottom (Pyjama/Trouser) made of cotton (i.e. Bottom-67% Cotton; 29% Polyester: 4% Spandex Woven Pant). The Pyjama sets are packed in 2 nos. (two pairs) in a single pack as per the instructions of their buyer. The price of 1 pack of Pyjama Sets (2 tops and 2 bottoms) is Rs. 1,371/-. 7.3 The appellant had sought for Advance Ruling as to the HSN code for men's Pyjama Sets and GST rate of tax applicable for 2 Pyjama sets packed in a single pack and costing more than Rs. 1000/- per pack. The Authority for Advance Ruling had given ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he rate of GST on Men's Pyjama sets falling under Chapter 62 is as follows: Schedule I - @2.5% CGST S.No. Chapter/Heading/Sub-Heading/Tariff Item Description of Goods 223. 62 Articles of Apparels and clothing accessories, not knitted or crocheted, of sale value not exceeding Rs. 1000/-per piece Schedule II - @ 6% CGST S.No. Chapter/Heading/Sub-Heading/Tariff Item Description of Goods 170. 62 Articles of Apparels and clothing accessories, not knitted or crocheted, of sale value exceeding Rs. 1,000/- per piece As per schedule-I & II above, the determination of rate of tax is based on the 'cost per piece'. In the instant case, 'piece' therefore, is a single, independently usable apparel or clothing.....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 1,371/- shown in appellant's pack is for two Pyjama sets/pieces. The Appellant's claim that the effective rate per set value exceeds Rs. 1,000/- is not correct. The Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 prescribes the 'Apparels with Sale Value not exceeding Rs. 1,000/- per piece'. Further, the case laws cited by the appellant and enclosed in the Grounds of Appeal are not relevant to this instant case. 7.8 As such, we concur with the Ruling of the Advance Ruling Authority that since the price of one Pack consisting of two pyjama sets is Rs. 1,371/-, the price of one pyjama set or a piece of apparel consisting of 1 Shirt and 1 Pant is only Rs. 686/- which is less than Rs. 1,000/ -. Hence, this is qualified to be cla....