Case Law Details
In re Supreme Gums Private Ltd (GST AAR Rajasthan)
Introduction: The article examines the case of M/s Supreme Gums Private Ltd., seeking an advance ruling on the classification and applicable tax rate for the supply of liquid suspension of guar gum powder, commonly known as “guar gum slurry.” The applicant’s query pertained to the product manufactured under notification No.1/2017 —CT dated 28.06.2017.
Detailed Analysis: Supreme Gums Private Ltd., based in Jaipur, specializes in manufacturing and supplying guar gum powder for various industrial applications. The company proposed a new product, guar gum slurry, primarily used in the oil and gas industry for hydraulic fracturing. The slurry is a liquid suspension of guar gum powder, mineral oil, Clayton AF, and BYK GO 8720, with specific proportions in the manufacturing process.
The applicant sought clarity on the classification and applicable tax rate under Chapter 27 of the Customs Tariff Act 1975, claiming that the product was primarily a mineral oil-based liquid.
However, the jurisdictional officer suggested that the processed material, guar gum slurry, might fall under Chapter 13 of the Customs Tariff Act 1975, considering the composition and characteristics of the product.
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