Case Law Details
In re Kavi Cut Tobacco (GST AAAR Tamilnadu)
The appellant has stated to have purchased ‘Raw dried tobacco leaves’ from wholesale dealers/farmers and then undertakes the process of grading, drying, dipping in jaggery water, stalking, semi-drying, mincing, subjecting to natural/agricultural preservatives, weighing and packing for supply. Thus, the raw material which is ‘Raw dried tobacco leaves’ undergoes the above process and the end product ‘Chewing Tobacco’ with distinct character and use emerges. This is established by the test reports furnished by the appellants before the lower authority which is discussed in Para 3.3 of the ruling of the lower authority. The said para is given below:-
“3.3 The applicant vide their letter received on 05.07.2019 furnished the test report of the raw material and the finished product from Enviro Care India Private Limited, a NABL certified lab and also photographs of the manufacturing process as undertook by them during the hearing. The test report for the sample marked ‘Chewing Tobacco before processing’ and ‘Chewing Tobacco after processing’ are furnished. On perusal of the reports it is seen that the chemical parameters in both consists of Moisture, Total Ash, Acid Insoluble Ash and Nicotine. While the Nicotine content remains unchanged, the Moisture content is more than doubles and the content of Total Ash and Acid insoluble Ash are reduced …………….”
Thus, it is evident that the raw material undergoes a set of processes and emerges as a distinct product which makes it marketable/consumable for the chewing needs. Therefore, the product supplied by the appellant is “Manufactured Tobacco product for Chewing”. Once it is held that the product is ‘Manufactured Chewing tobacco’, the classification of the product is under CTH 2403 9910 which specifies ‘Chewing Tobacco’ under the head “2403-Other Manufactured tobacco and manufactured tobacco substitutes….” as held by the lower authority and there appears to be no need for our intervention with the order of the Lower Authority.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING,TAMILNADU
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