Case Law Details
In re Kasar Industries (GST AAR Rajasthan)
Introduction: The GST Authority for Advance Ruling (AAR) Rajasthan has addressed a crucial matter in the case of Kasar Industries. The applicant sought clarification on the classification and applicable rate of GST and Compensation Cess for their product “DHARIWAL,” which is tobacco pre-mixed with lime.
Analysis: Kasar Industries, a registered GST entity, raised the question of how their product “DHARIWAL,” consisting of tobacco pre-mixed with lime, should be classified for GST and Compensation Cess purposes. The ruling sought to determine the accurate classification and associated rates for taxation on this specific product.
The applicant’s submission provided insights into the manufacturing process of “DHARIWAL,” which involves the mixing of raw cut tobacco with lime, followed by drying, processing, and packaging. The personal hearing provided additional clarity on the manufacturing flow and ingredients used in the product. However, subsequent to the personal hearing, the applicant decided to withdraw the application due to changes in premises.
Conclusion: The GST AAR Rajasthan’s ruling in the Kasar Industries case reflects the dynamic nature of the advance ruling process. Despite the detailed analysis and considerations, the applicant eventually chose to withdraw their application.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, RAJASTHAN
Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST 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 provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RUST Act would be mentioned as being under the “GST Act”.
The issue raised by M/s Kasar Industries, Khasra No-160,Village- Kasar., Tehsil Ladpura, Dist-Kota, Rajasthan, Pin-325003 ,GSTINO8AB AFK2258BIZO(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 and applicable rate of GST and or Compensation Cess on the Tobacco pre mixed with lime packed in pouches under brand
Further, the applicant being a registered person (GSTIN is 08ABAFK2258B IZQ), as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling.
A. SUBMISSION AND INTERPRETATION OF THE APPLICANT:
M/s. Kasar Industries. (hereinafter referred to as the “applicant”) are registered under GST having GSTIN 08ABAFK2258B1ZQ, Applicant wishes to manufacture and supply the product “DHARIWAL” which is ‘Tobacco pre-mixed with lime’. It is principally unmanufactured tobacco which has been pre-mixed with lime. The applicant wishes to manufacture “DHARIWAL” i.e. ‘Tobacco pre-mixed with lime’ where the principal content is tobacco which is mixed with Lime. Further, little aroma and menthol is used for freshness and to avoid bad smell. The process of manufacturing product is as under- Lime paste is mixed with Raw cut Tobacco and dried in Auto Plant where water gets evaporated during drying process; After drying in auto plant, the lime mixed tobacco is processed through vibrators to segregate uneven leaves and dust; The resulting semi-finished product is then stored in Jute fabric covered steel Silos; Such semi-finished product is then processed in coating plant to add aroma, menthol and moisturising which becomes final product i.e. “Tobacco pre-mixed with lime” for packing in pouches and dispatch.
B.QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:
The applicant has asked the Classification and applicable rate of GST and/ or Compensation Cess on our product “DHARIWAL” i.e. ‘Tobacco pre-mixed with lime
C. PERSONAL HEARING
In the matter personal hearing was granted to the applicant on 19.04.2023 Sh Mr. Ashish and Mr. Kamal Agarwal (employees) authorized representatives of applicant appeared on behalf of applicant for personal hearing. During the personal hearing, he reiterated the submissions already made. on being enquired about detailed manufacturing in flow and ingredients, applicant assured to submit soon.
D. WITHDRAWAL OF APPLICATION
The applicant vide their letter dated 07.06.2023 requested to withdraw the Advance Ruling Application filed before the authority, as they are changing the premises.
E. FINDINGS, ANALYSIS & CONCLUSION:
The Applicant vide their letter dated 07.06.2023 has requested to withdraw the Advance Ruling Application filed before the authority.
Since the applicant has requested for withdrawal of the application therefore, their request to withdraw the application is considered. Hence, no ruling is given.
