Case Law Details
Mega Flex Plastics Ltd. Vs Union of India (Calcutta High Court)
Calcutta High Court held that petitioner not allowed to change the classification of Tariff Heading for availing lower rate of Tariff under GST regime as petitioner never contested classification under Central Excise Tariff Act and enjoyed Duty Drawback accordingly.
Facts- Main issue involves in the instant writ petition relates to a classification disputes of the product in question and refusal by the authority concerned to consider the petitioner’s prayer for allowing it to change the classification of Tariff head of its same product under the Central Excise Tariff Act after introduction of the GST Act, 2017.
Petitioner is a manufacturer of Polypropylene Leno Bags by weaving polypropylene strips (tapes). Polypropylene is a variety of plastic. The major raw material in manufacture of PP Leno Bags is plastic granules.
Petitioner, before the introduction of the Goods and Services Tax Act, 2017, had voluntarily declared its finished product under the Chapter Heading 3923 29 90 of the Central Excise Tariff Act, 1985 and enjoyed the Duty Drawback. No cogent reason has been shown by the petitioner as to why and how the Tariff Heading of the same product having same composition and involving same process of manufacturing sought to be changed from classification 3923 29 90 to 6305 33 00 except that rate of tax on the same product under the same tariff heading is higher under newly GST regime.
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