In re M/s. A.W. Faber-Castell (India) Pvt. Ltd (GST AAR Maharashtra)
Question: What is the appropriate classification and rate of CGST on the supply of the product in question- Modelling Dough.
Answer : Modelling dough will be covered under CTH 3407 under the Customs Tariff Act, 1975.
FULL TEXT OF ORDER OF AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IS AS FOLLOWS:-
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by M/s. A.W. Faber-Castell (India) Pvt. Ltd., the applicant, seeking an advance ruling in respect of the following question :
Whether the product of the applicant i.e. “Modelling dough’ will be covered under Chapter 34 or Chapter 95 under the Customs Tariff Act, 1975.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus –
“STATEMENT OF RELEVANT FACTS HAVING A BEARING ON THE QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED
1 M/s A.W. Faber-Castell (India) Pvt Ltd (hereinafter referred to as Applicant ) having its corporate head office at 801. Kamla Executive Park, Near Vazir Glass Works, J. B Nagar. Andheri (east), Mumbai and having various regional offices located at Bhiwandi (Maharashtra), Chennai, Delhi, Kolkata and Goa, is inter-alia engaged in the manufacture of various products taxable under GST law
2. The present application is filed in respect of one of its products – “Modelling Dough” which is a specially manufactured semisolid, clay-like structure to be used as a toy for kids to make various shapes, things, caricatures of animals etc. It is made up of ‘maida’ i.e. ‘refined wheat flour’ or ‘white flour’. Modelling dough is usually supplied in packs containing multiple such dough in various colours to attract kids
3 The applicant submits that there appears to be an anomaly in the Customs Tariff as well as in the GST Tariff Schedules in so far as ‘modelling dough’ is concerned. The term ‘Modelling pastes, including those put up for children’s amusement’ finds a mention in Chapter Heading No. 34.07 as Tariff Item No. 34.07 00 10. “Modelling paste’ of Chapter Heading No. 34.07 is specified under SI. No. 63 of Schedule-Ill to Notification No. 1/2017-Central Tax (Rate) dated 28 06.2017 as amended by Notification No. 41/2017- Central Tax (Rate) dated 14.11 2017 which reads as under:
