AAAR Ruling on classification of unmanufactured tobacco product

In re Pandey Traders (GST AAAR Uttar Pradesh)

In the case of “Pandey Traders (GST AAAR Uttar Pradesh),” an important GST classification dispute was resolved through an appeal under Section 100 of the Central Goods and Service Tax Act, 2017, and the Uttar Pradesh Goods and Service Tax Act, 2017. The appellant, M/s Pandey Traders, contested the Advance Ruling Order issued by the Authority for Advance Ruling, Uttar Pradesh, dated 02.03.2023.

Background of the Case:

M/s Pandey Traders, located in Siyapuram, Station Road Mainpuri, Uttar Pradesh, sought clarification regarding the classification of their product. The appellant, a proprietorship concern registered under GST, engaged in the manufacturing of unbranded unmanufactured tobacco. They procured unmanufactured raw tobacco dust from various traders, adding scent to it, and then sold the product to customers on both B to B (business-to-business) and B to C (business-to-consumer) bases after packing it through a third party.

Grounds of Appeal:

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