In re Aludecor Lamination Private Limited (GST AAR Telangana)
1. Whether Aluminium composite panel/sheet is covered under HSN 3920 or HSN 7610 or HSN 7606?
As the Aluminium Composite Panel/Sheet attribute most of its characteristics to the two aluminium sheets from which it is made, the ACP has to be classified under the tariff heading 7606 as per Rule 3(b) of the General Rules for the interpretation of the Customs Import Tariff Schedule read with Notification No.1/2017-Central Tax (Rate) dated 28th June,2017.
2. Rate of SGST and CGST applicable on the same.
9% SGST and 9% CGST
Read AAAR Order: Aluminium Composite Panel/Sheets classifiable under CTH 7606: AAAR Telangana
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TELANGANA
M/s. Aludecor Lamination Private Limited, SY NO 19, Ground Floor, Gopal Reddy Estate, Medchal Road, Kompally, Qutubullapur Mandal, Medchal Malkajgiri, Telangana – 500 100 (36AAECA8253G2ZN) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules, seeking Advance Ruling on the following as under :
1. Whether Aluminium composite penal/sheet is covered under HSN 3920 or HSN 7610 or HSN 7606?
2. Rate of SGST and CGST applicable on the same.
I. Statement of relevant facts submitted by the applicant having a bearing on the question(s) raised:
M/s. Aludecor Lamination Private Limited, the applicant having its registered office at Ground Floor, SY No. 19, Gopal Reddy Estate, Medchal Road, Kompally 500100 India and holds valid registration under CGST Act, 2017.
The applicant has submitted that he is engaged in manufacturing of Aluminium Composite Panel/ sheet, (herein after referred as “ACP Sheets”) in Haridwar, Uttarakhand, India. The applicant has place of business in Telangana at the address declared in the application for Advance Ruling under Rule 98 of Goods and Service Tax Rules, 2017. In common parlance the product of the applicant is called as “Aluminium Composite Panel”, often it is called as “Sandwich Panel” or “ACP Sheet”. The same is manufactured in 4 width (Fixed) and length of 89, 10* or 12 as required by the purchases. In fact the product is “Plastic sheet laminated with Aluminium Sheets”. If recycled plastic is used in manufacturing, it can be said to be “Recycled plastic Aluminium Composite Panel Sheet”. Aluminium composite panels are sandwiched type panel consisting of Nontoxic polythene core firmly laminated with thin Aluminium sheet on top and bottom (One Side affixed with adhesive polythene film for protection) and are being used as Industrial Product. The dealer has manufacturing unit of at Haridwar.
3. The applicant procures the ACP Sheets from his factory situated in Uttarakhand or from the other plivalgs of business situated in India as branch transfer and sells the same in Maharashtra. Once the applicant has imported the same product from out of India and the documents relating to import also says that the product is covered under CETH 3920.
4. In fact the product is “Plastic sheet laminated with Aluminium Foils”. If re cycled plastic is used in manufacturing, it can be said to be “Re-cycled plastic Aluminium Composite Panel”.
5. Aluminium composite panels are sandwiched type panels/sheets consisting of Non-toxic .S)Y7RA, polythene core firmly laminated with thin Aluminium Foils on top and bottom (Both Side of the polythene sheet) and is being used as Industrial Product.
6. Brief about ACP Manufacturing Process:
Recycled Plastic Granules (i.e. low density polyethylene granules) purchased from the various suppliers are first created in a drier-mixer (or removal of moisture from the said material. Thereafter with the help of Screw conveyor these plastic granules go into the Extruder machine via hopper, where it passes through different temperature profiles and comes out from a T-Die in hot melt condition. From T-Die, this hot plastic melt passes through steel calendar rollers where the hot plastic melt is converted into a matt or sheet form of required thickness, normally for manufacturing of 3mm and 4mm thick ACP sheets and fixed width of 4 feet. During it passes, the extra material in excess of 4 feet is cut from both the side. Meanwhile a thin polyethylene film known as “plastic adhesive film” is laminated on both the sides (Top & Bottom side) of the plastic sheet extruded in the process. This plastic adhesive film is melted and helps Aluminium foils/coils to be laminated on the plastic sheet extruded. Further, this plastic sheet/core material laminated with adhesive film, passing through the composite section where Top & Bottom coated Aluminium foils/coils of particular thickness are laminated on both the sides of the plastic core/sheet. Finally the plastic sheet laminated with Aluminium foils/coils passes from cooling section. After cooling section a plastic protective film is laminated on decorative side or top coated Aluminium foils/coils of the ACP sheet and then the ACP sheet reaches at cutter section where it can be cut into the required lengths as per order from specific customer or cut to standard length of 8 feet, 10 feet or 12 feet. The same is stacked, one above another, and then shifted to dispatch area as ready for delivery after pre-dispatch inspection process.
7. Use to finished Goods
The finished goods of the applicant are used in different industries such as;
(1) In construction of mainly Commercial buildings to be used on outside walls for protection from heat, water proofing, avoiding painting and like purpose by the builders and ontractors engaged in works contract. Form the sheets by drilling, routing, cutting and other process components, parts are prepared for use in construction /structure.
(2) In Railways in coach building
(3) In signage Industries for manufacturing of advertisement boards, name boards etc.
(4) In passenger ship building industries,
(5) In manufacturing of Furniture and Fixture,
(6) In automobile Industries in manufacturing of passenger motor vehicles,
(7) In interior decoration,
(8) In construction of pedestrian bridges etc.
This is not ready to be used as it is, but the same requires cutting, routing, drilling; etc. process and then can be used in structure or fabrication or as the case may be.
II. Statement containing the applicant’s interpretation of law based on the facts, in respect of the aforesaid questions:
1. In VAT Period, the applicant use to sell the product under Central Excise Tariff Heading (CETH) 3920, after DDQ in the matter of Kevin Enterprises and others under CETH 7606. Commissioner of Sales Tax, Maharashtra while deciding the issue of rate of tax held the same product falling under CETH 7610. Please refer complete copy of Chapter 39, Chapter 73 and Chapter 76 of Central Excise Tariff Act, attached herewith.
2. Important portion from the said Tariff entry is reproduced for quick reference and comparison. CETH 3920 Chapter heading 39 under Central Excise is related to Plastic and its different products. It does not speak for any other goods other than plastic. Yet certain products are not covered under this chapter heading;
3920 Other plates, sheets, films, foil and strip of plastics, Non-cellular and not reinforced, laminated, supported or similarly combined with other material
CETH 7606 Chapter heading 76 dealers with Aluminium and different products made from Aluminium. For further clarification, one has to refer following meaning of the product;
7606 Aluminium plates, sheets and strip, of thickness exceeding 0.2 mm. CETH 7610 : CETH 7610 reads as under in Central Excise Tariff Act
