TaxTMI 
TaxTMI 
2026 (8) TMI 834
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....vate Limited, Plot No. 106, Sector-7, Haridwar, Uttarakhand-249402 (herein after referred to as the "applicant") and registered with GSTIN 05AAACL0282E1Z1 under the CGST Act, 2017 read with the provisions of the UKGST Act, 2017. 2. At the outset, we would like to state that the provisions of both the CGST Act and the SGST Act are the same except for certain provisions; therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act. 3. The Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 4.1 As per the said sub-section (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of: (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of t....
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....er used in the manufacture of notebooks and exercise books, and the same shall be supplied only to customers who are engaged in or intend to use the same for the manufacture of notebooks and exercise books. C. End-Use Commitment: The Applicant submits that the proposed supply of uncoated paper under HSN 48025590 is specifically intended for use in the manufacture of notebooks and exercise books. The Applicant proposes to obtain end-use declarations/purchase orders from buyers clearly specifying the aforesaid intended use, so as to satisfy the conditions of the exemption notification and discharge its evidentiary obligations as a supplier claiming the benefit of the exemption. D. Applicable Notifications and Rate Regime: Pursuant to the recommendations of the 56th GST Council Meeting held on 03.09.2025, the Central Government issued the following two notifications effective from 22.09.2025, which creates a use-based bifurcation within HSN 4802: Notification Description Rate Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025-Schedule II [Entry 167] HSN 4802 Uncoated paper and paperboard, of a kind used for writing, printing or other graphic ....
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....ntry from the Exemption Notification: S.No. Chapter/Heading /Sub-heading/Tariff Item Description of Goods Rate 128 4802 Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803, used for exercise book, graph book, laboratory note book and notebooks NIL Legislative Intent Behind the Exemption: 56th GST Council Meeting The Applicant places reliance upon the Press Release of the 56th GST Council Meeting held on 03.09.2025 (chaired by the Hon'ble Union Finance Minister) wherein the GST Council made the following recommendation (as documented in the official Press Release): "12% to Nil: Uncoated paper and paperboard for exercise books, graph books, laboratory notebooks and notebooks." Source: Official Press Release, 56th Meeting of the GST Council dated 03.09.2025. It is evident from the above that the express intent of the Council was to exempt uncoated paper used for exercise books and notebooks from GST, as a measure to benefit the common man, aspirational middle class and the education sector. The 56t....
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....ed or incidental rather it is the primary and stated purpose of the supply. The Applicant shall ensure that all purchase orders, supply agreements, and buyer declarations unambiguously record that the paper is being procured exclusively for use in the manufacture of notebooks and exercise books. Copy of the draft buyer declaration is also attached. The term 'used for' in the exemption entry is a well-recognized condition of end-use, which is satisfied when the goods are supplied with a clear, documented intention of the specified downstream use. The Hon'ble Supreme Court, in a series of decisions under the erstwhile Central Excise Act, has consistently held that an end-use exemption or concession is satisfied if the goods are supplied with a stipulated intent and supported by documentation establishing such intent, even though the actual use occurs at a subsequent stage. In light of the foregoing, the uncoated paper in question, falling under HSN 48025590, is exclusively intended for use in the manufacture of notebooks and exercise books, as evidenced by the nature of the product, its trade identity, and the supporting documentation establishing such end-use intent. Distin....
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....n'ble Supreme Court. Accordingly, the exemption under Entry S. No. 128 of the Exemption Notification is squarely and fully applicable to the goods in question, and any contrary interpretation would be contrary to both the statutory scheme and binding judicial precedents. Any other interpretation would render the specific exemption entry nugatory and would be contrary to the purpose and object of the Exemption Notification. Summary of Submissions: The goods proposed to be supplied are uncoated paper classifiable under HSN 4802 55 90, being goods of a kind used for writing, printing or other graphic purposes, in rolls or sheets. The said goods are specifically and exclusively intended for use in the manufacture of notebooks and exercise books by the recipient, and the same shall be supported by end-use documentation including purchase orders and buyer declarations. Entry S. No. 128 of the Schedule to Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025 specifically and expressly exempts such goods from the whole of the central tax leviable thereon under Section 9 of the CGST Act, 2017. The 18% GST entry under Schedule II of Notification No. 09/2025-Central T....
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....he personal hearing in the matter was fixed and conducted, in virtual mode, on 22.07.2026 and the applicant was represented by their Authorized Representative Shri Harendra Singh, Senior Manager and Shri Akash Mittal, CA who reiterated the facts and submissions made in their application dated 15.05.2026. 7. ADDITIONAL SUBMISSIONS BY THE APPLICANT: Pursuant to the personal hearing held on 22.07.2026, the applicant has made additional submission dated 23.07.2026 wherein it has been submitted that in addition to the end-use declaration proposed to be obtained from the buyer at the time of procurement, they shall also obtain a declaration from the manufacturer after completion of the manufacturing process and the declaration shall certify particulars of the invoices under which paper was purchased; description and quantity of paper received; confirmation that the paper has been utilized for manufacture of notebooks/exercise books; production batch number(s) in which such paper has been consumed; quantity of paper consumed batch-wise; quantity of notebooks/exercise books manufactured from such batch; balance quantity remaining from the original supply, if any and confirmation that....
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.... laboratory notebooks and notebooks." The exemption is not worded as supplied to notebook manufacturers; sold for manufacture of notebooks; intended for notebooks; or supplied against declarations. Instead, the notification identifies a category of goods by reference to their use. The expression employed is "used for". The notification does not create any separate class of eligible purchasers. Nor does it make purchaser declarations the basis of exemption. Principles governing exemption notifications: It is a settled principle that exemption notifications are required to be construed strictly. The person claiming exemption must clearly establish that the goods fall within the four corners of the exemption notification. Only after eligibility is clearly established can the exemption be extended according to its terms. Equally well settled is the principle that Courts and quasi-judicial authorities cannot enlarge the scope of an exemption notification or introduce words which the delegated legislation has consciously omitted. End-use based exemptions require statutory machinery: We observe that the Applicant proposes to establish eligibility through declarations, purch....
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....n substance, seeks a declaration that maintenance of specified documents would automatically establish eligibility for exemption. Such a declaration has no foundation in the notification itself. Meaning of the expression "used for": The Applicant has argued that the expression "used for" should include intended use supported by declarations/documentation. While it is true that end-use based expressions may in certain statutory contexts receive a broader interpretation, such interpretation generally operates where the legislation simultaneously prescribes a mechanism for establishing such intended use. We find that Entry No. 128 employs the words "used for". It does not employ expressions such as "intended to be used", "supplied for use", or "meant for use". The ordinary meaning of the expression "used for" denotes a factual relationship between the goods and the specified use. At the point when the supplier effects the supply, the future utilisation of the paper by the purchaser has not yet occurred. Whether the purchaser ultimately manufactures notebooks, diverts the goods elsewhere, or disposes of them differently or the goods themselves gets damaged/stolen in transit, r....