In re Balveer Singh (GST AAR Rajasthan)
In a recent ruling, the Rajasthan Authority for Advance Rulings (AAR) addressed the classification and Goods and Services Tax (GST) rate applicable to slaked lime produced by a local applicant, Balveer Singh. The primary issues pertained to the proper Harmonized System of Nomenclature (HSN) classification and GST rate on slaked lime containing less than 98% calcium oxide and calcium hydroxide.
Background of the Application
The applicant, Balveer Singh, approached the AAR seeking clarity on the classification of slaked lime and the applicable GST rate. The slaked lime in question has a calcium oxide and calcium hydroxide concentration of less than 98%. Given the product’s composition, the applicant was uncertain of the appropriate HSN code and the rate of tax under the GST regime.
Rulings Requested by the Applicant
The application specifically sought a ruling on the following points:
- The classification and HSN Code applicable to slaked lime with less than 98% calcium oxide and calcium hydroxide content.
- The GST rate applicable to the said product.
Examination of Legal Precedents and Laboratory Reports
The Rajasthan AAR reviewed submissions, previous case rulings, and laboratory analyses provided by the applicant. Notably, the applicant cited two cases as support:
1. Commissioner of C. Ex., Hyderabad-III vs. Bhadri Minerals Pvt. Ltd. – The case classified burnt lime with a purity of less than 98% under Heading 25.05, instead of Heading 28.25, due to the impurity levels.
2. M/s Jindal Stainless (Hisar) Ltd vs. Commissioner of Customs – This ruling affirmed that quick lime with a purity of 92-97% should be classified under Chapter 25.
The applicant further submitted laboratory reports indicating the calcium hydroxide levels in the product. Test results from various laboratories showed the following compositions:
- Central Laboratory of Rajasthan State Mines & Minerals (November 2023): Calcium hydroxide at 86.92%.
- M/s Balaji Laboratory (November 2023): Calcium hydroxide at 91.52%.
- Central Laboratory (April 2024): Calcium hydroxide at 86%.
These reports indicated that the slaked lime produced by the applicant contained impurities and did not meet the purity threshold for classification under Chapter 28 of the Customs Tariff, which only includes products with a 98% purity.
