Case Law Details
In re Sri.N.C. Varghese (GST AAR Kerala)
1. Sri.N.C. Varghese, Thrissur, a small scale contractor (hereinafter called the applicant), has preferred an application for Advance Ruling on the rate of tax of standing rubber trees. The applicant is engaged in the purchase and cutting and removal of rubber trees from the plantations of certain public sector undertakings owned by the Government of Kerala and also from private individuals in Kerala.
2. The applicant has submitted that he had participated in the e-auction for cutting 6696 standing rubber trees from the State Farming Corporation Ltd., Vettithitta, a PSU under Central Govt. The applicant contends that the tax liability of timber and firewood/fuel wood is explained under HSN code 4401 and there is no direction to collect GST for standing trees of rubber trees which fall under HSN code 06. But, the State Farming Corporation is demanding 18% on live rubber trees. The tax liability of GST coming to effect only when the standing trees are cut down and separated into timber/wood and fuel wood/fire wood as the case may be.
3. The applicant further contends that the rubber trees are soft wood and cannot be used for construction purposes. It is generally used for the manufacture of packing cases and plywood substitutes, etc. after necessary processing.
4. The applicant further argued that in the VAT period, since rubber wood is not useful for construction purposes, the Government of Kerala exempted the rubber trees/rubber wood from the purview of tax in order to give relief to the growers.
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