Case Law Details
In re Grasim Industries Limited (GST AAR Karnataka)
In the case of Grasim Industries Limited (GST AAR Karnataka), the applicant, a manufacturer of Viscose Staple Fibre and other chemicals, sought an advance ruling under Section 97 of the CGST Act, 2017, and the KGST Act, 2017. They requested clarification on the classification of Debarked Eucalyptus wood, which is a raw material for their production. The applicant noted that suppliers classify this wood under different HSN codes, resulting in different GST rates (18% under HSN 4403 9800 and 5% under HSN 4401 3900).
The applicant contended that Debarked Eucalyptus wood should be classified under Chapter heading 4403, attracting an 18% GST rate. However, they were informed that they could not seek an advance ruling on inputs or consumables they procure, as per Section 95(a) of the CGST Act 2017.
The applicant did not submit hard copies of the application and later requested to withdraw it via email on March 14, 2024. The Authority for Advance Ruling (AAR) Karnataka allowed the withdrawal and disposed of the application as withdrawn.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
M/s. Grasim Industries Limited, P.B. Road, Kumarapatnam, Haveri, Karnataka 581123 having GSTIN 29AAACG4464B1ZU have filed an application, online, for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017.
2. The Applicant stated that they are manufacturers of Viscose Staple Fibre (HSN 55041000), Sodium Sulphate (HSN 28331990), Sulphuric Acid (HSN 28070010) and Carbon Di-Sulphide (HSN 28131000); the main raw material for manufacture of Viscose Staple Fibre is “wood pulp”, manufactured by consuming Debarked Eucalyptus pulp wood, which is being procured by the applicant from different suppliers in Karnataka, in the form of logs and in rough condition, who classify the same under HSN 4403 9800 and charge 18% GST; some of the suppliers are supplying the similar wood classifying the same under HSN 4401 3900 and charging GST of 5%.
3. In view of the above, the applicant has sought advance ruling in respect of the classification of the Debarked Eucalyptus wood. The applicant contended that the impugned product merits classification under Chapter heading 4403 and accordingly attracts 18% GST.
4. The applicant, though can’t seek advance ruling in respect of the inputs /consumables being procured by them as the question has to be in relation to their outward supply being undertaken or proposed to be undertaken in terms of Section 95(a) of the CGST Act 2017, has not submitted the hard copies of the instant application and on enquiry informed through e-mail dated 14.03.2024 that they intend to withdraw the application and requested to permit them to withdraw the instant application.
5. In view of the above, we pass the following,
RULING
The application filed by the applicant for advance ruling is disposed off as withdrawn.
