In re Papaka Herbs & Spices private Limited (GST AAR Tamil Nadu)
Whether the Rice Husk Board manufactured by the applicant comprising of Natural Fibre (Rice Husk Powder); Calcium carbonate, recycling waste and other processing aid as well as PVC resin, wherein PVC acts only as a bonding agent would remain classified as wood and Articles of Wood under Chapter 44 and attract 12% rate of GST?
“Indowud Natural Fibre Composite (NFC) Board” manufactured by the applicant merits classification under Chapter 441193 of the Customs Tariff and attracts 6 % CGST as per S.No. 92 of Schedule II under Notification 1/2017-Central Tax (Rate) Dt. 28.06.2017 and 6 % SGST under Notification No. II(2)/CTR 532(d-4)/2017 vide G.O. (Ms) No. 62 dated: 29.06.2017 as amended.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMIL NADU
Note: Any appeal against this Advance Ruling order shall lie before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai as under Sub-Section (1) of CGST Act / TNGST Act 2017, within 30 days from the date on the ruling sought to be appealed is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act, 2017 and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
M/s. PAPAKA HERBS & SPICES Pvt Ltd., No. 205, City Center Road, 2nd Floor,232 Purasawalkam High Road, Chennai 600 010. (hereinafter referred as ‘Applicant’) is registered under the GST Act 2017 vide GSTIN No. 33AAGCB8401P1Z1. They are engaged in the manufacture of “Natural Fibre Composite Board (NFC) and their manufacturing facility is at 1/138 Ellammankoil Street, Azhinjivakkam Post, Athipedu Village Sholavaram, Chennai 600 067. The applicant has sought Advance Ruling on the following question:
Whether the Rice Husk Board manufactured by the applicant comprising of Natural Fibre (Rice Husk Powder); Calcium carbonate, recycling waste and other processing aid as well as PVC resin, wherein PVC acts only as a bonding agent would remain classified as wood and Articles of Wood under Chapter 44 and attract 12% rate of GST.
The applicant submitted a copy of challan evidencing payment of application fees of Rs.5, 000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant has stated that one of the products manufactured by them is the Rice Husk Board. They procure rice husk from the farming community, rice mills or other traders who supply rice husk according to their requirement. Firstly, the rice husk, is pulverized into a fine powder and then the powdered rice husk otherwise known as natural fibre are derived from the agro-residuals. Thereafter, the natural fibre, is mixed with lime powder (calcium carbonate), processing additives such as lubricants, foaming agents, foam regulators, heat stabilizers, etc. PVC resin is used as a binding agent. The quantity of each part of raw material for the manufacturing process of the above mentioned product is produced below:
