Messrs Ananta Synthetic Innovations & Anr. Vs State Of Gujarat & Ors. (Gujarat High Court)
Gujarat High Court held that Geo Membrane for water proof lining fabrics is classifiable under HSN Code 59111000 liable to GST @12% and not under HSN Code 39269090. Thus excess GST paid is allowable as refund.
Facts- The petitioner a partnership firm which has come into effect from 13.10.2019, is manufacturer of Geo Membrane which is a textile fabrics. The petitioner – firm is also registered under the provisions of the Central Goods and Services Tax Act, 2017. According to the petitioner, the product i.e. Geo Membrane which is a textile product, is chargeable to GST as textile fabrics under HSN Code 59111000, whereas as per the Department, it was chargeable as plastic Geo Membrane being an article of plastic to GST under HSN Code 39269090.
Conclusion- Held that the product manufactured by the petitioner being Geo Membrane is classifiable would fall under Chapter 59 and not under Chapter 39 as held by the respondent No.4 – the Gujarat Advance Ruling Authority relying upon the decision of the Hon’ble Madhya Pradesh High Court in case of Raj Packwell Ltd. The petitioner, therefore, is liable to pay the GST @ 12% from 15.11.2017 onwards and not @ 18%. The respondent authority is, therefore, directed to apply the discounted rate of 12% of the GST on the product manufactured by the petitioner under HSN Code 59111000 of the Tariff. The petitioner is entitled to claim the refund on the excess GST @ 6% paid pursuant to the order of the respondent No.4 – the Gujarat Advance Ruling Authority, without claiming any interest thereon.
