Plastics Broom-Sticks is classifiable under HSN Code 96032100

In re M/s Aristoplast Products Pvt Ltd (GST AAR Daman/Diu/DNH)

1. In the first case against Application dtd 12.09.2018 filed by M/S Aristoplast Products Pvt Ltd, Survey No 45/2-8, Vapi Daman main road, Dabhel, Nani Daman, Advance Ruling is given that the product Plastics Broom-Sticks is classifiable under HSN Code 96032100 as “Others” and the product Plastics Broom-Stick is eligible for concessional rate of tax vide given to the products falling under this head vide Notification No. 1/2017-CT(rate) dtd 28.06.2017 i.e. 5% IGST or 2.5% CGST + 2.5 UTGST.

2. In the Second case against Application dtd 24.09.2018 filed by M/S Aristoplast Products Pvt Ltd, Survey No 45/2-8, Vapi Daman main road, Dabhel, Nani Daman, Advance Ruling is given that the product of the applicant is a “Portable Sprayers” under the HSN Code 84244100. The correct rate for the product in question is IGST or 9% CGST+9% UTGST.

FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, DAMAN/DIU/DNH

M/S Aristoplast Products Pvt Ltd, Survey No 45/2-8, Vapi Daman Main Road, Dabhel, Nani Daman – 396210, having GSTIN Number 25AAMCA5352JIZI, is engaged in the manufacturing of Broom Stick made of Plastics, Sprayers and other products made of plastics etc. They have made two application for seeking Advance Ruling first application on 12.09.2018 under advance Ruling was made for deciding the correct classification of Broom Stick for which they have paid the required fee amounting to Rs. 5,000/- for Central GST and Rs. 5,000/- for UT GST vide Challan Identification Number (CIN) – HDFC 18082500001058 Date -13.082018, HDFC 18112500004128 Date -26.11.2018.

2. M/s Aristoplast Products Pvt Ltd, Survey No 45/2-8, Vapi Daman main road, Dabhel, Nani Daman – 396210, have filed second application dtd 24.09.2018 seeking Advance Ruling for the correct classification of “Sprayers” made of plastics. The applicant has described sprayers as mechanical and hand operated sprayer. These sprayers are fitted with a plastic nozzle and are used for spraying liquid. They have made an application on 24.092018 under advance Ruling alongwith required fee amounting to Rs.5,000/- for Central GST and Rs. 5,000/- for UT GST vide Challan Identification Number (CIN) HDFC18072500001823 Date .17.07.2018 & HDFC 18092500004609 Date -27.09.2018.

3. The issue was forwarded to the jurisdictional AC for verification in the above two applications. The JAC vide their letter issued from F. No. Div.l/Misc./CGST/1/201819/1191 dtd 05.12.2018 have replied that the Description of Goods and HSN code Mentioned in Tariff of the above product, is as under:-

The JAC further submitted that in above both classifications, no word ofplastics is used. Hence, the rate ofduty mentioned in GST tariffis @18% for Broomsticks & Sprayer.

4. Records of Personal hearing,

The applicant has not filed any written defence reply in support of their claim. Therefore to abide by the law of natural justice, the applicant was given a chance to be heard in person and personal hearing in this case was fixed on 10.12.2018. Shri Kaushik Nahar, CS on behalf of the applicant appeared for the PH on 10.12.2018. During the PH he submitted that they have made the application in case of two of their products viz- Sprayers and Broomsticks made of plastics. They submitted that in both the cases they are paying GST @18% & 5% respectively as per the tariff rate, which in their opinion falls in the above rate brackets. They however, seek the order of the AAR in the above case. Shri Nahar also submitted that apart from the documents they have also submitted pictures of the products along with their applications. He further submitted that they have nothing to add more.

5. Discussion and Findings

In the present case there are two different applications for the two different products. The applicant has paid separate fee in each case for the Advance Ruling for these two products.

Now we, the members of Advance Ruling have to decide-

1. The Correct HSN code for the Broom Stick made of plastics and applicable rate of tax.

2. The correct HSN Code of Sprayers made of Plastics and applicable rate of tax.

6. First of all we take the product Broom Sticks for discussion of the correct classification. It is in the interest of justice to discuss the nature of product in question and its use. As per the evidence available before us, the product in question Broom Stick is made of Plastics In the present case the applicant has requested for the “determination of the liability to pay tax on goods or service or both.

6.1 We note that Broom stick is a cleaning tool consisting of usually stiff fibres ( made of materials such as plastic) attached to, and roughly parallel to, a cylindrical handle, The broomstick is thus a variety of brush with a long handle. It is commonly used in combination with a dustpan for cleaning floors etc.

6.2 We further find in the GST Tariff that the heading 9603 which is seems to be closer of the product in question, read as-

Brooms, Brushes (Including Brushes Constituting Parts Of Machines, Appliances Or Vehicles), Hand Operated Mechanical Floor Sweepers, Not Motorised, Mops And Feather Dusters; Prepared Knots And Tufts For Broom Or Brush Making; Paint Pads And Rollers; Squeegees(other than roller squeegees).

6.2.1 Therefore, it is very much clear from the reading of the main heading that the major heading for the classification of the plastics broom-stick is 9603.

6.3 We note that there are separate classification :- one for Broom-sticks made from twigs or other vegetables materials and second category which is not made from twigs or vegetable materials. Since the product in question i.e. Broom-Sticks is made from plastics, hence, it is very much clear that it should be classified as Brooms other than brooms consisting of twigs or other vegetable materials bound together , with or without handle. Thus brooms made from plastics are other than brooms classifiable under heading 96031000. Therefore, we held that the correct classification of the Plastic Broom-Stick is under heading 96032900 and classifiable as “Others”.

6.3.1 Hence, the product Plastics Broom-Stick is eligible for concessional rate of tax vide Notification No. 1/2017-CT(rate) dtd 28.06.2017 i.e. 5% IGST or 2.5% CGST + 2.5 UTGST.

7. Now we discuss the applicable GST rate and the correct classification of the second product in question. We note that the applicant have submitted a picture of their product taken on plain paper and have describe their product as “Sprayers” which is made of plastic. It is a mechanical and a hand operated sprayer which is fitted with a plastic nozzle. The product in question is used for spraying liquid.

7.1 The applicant has contended that their product is a sprayer which is mechanical and hand operated and merit correct classification under HSN Code 8424 under the sub head “Sprinkles, drip irrigation system including laterals; Mechanical Sprayers etc. They also contended that correct rate of GST on their product should be 12% adv under Sr. No. 325 of the Notification No. 01/2018- Central Tax(rate) dtd 28.06.2017 as amended .

7.2 We have seen the picture of the product in question “Sprayer” submitted by the assessee. On going through the picture of the product, we find that the product is a plastic made handy container for storing liquid which is fitted with hand operated sprayers. it appears that the product is claimed for classification under the heading of Sprinkle which do not qualify because sprinkle is an irrigation systems installed in field under which water is flown through pipes and rotating of Sprinkles made the water pour surroundings area. Further the product in question is neither drip irrigation system nor other equipments. Since the said product not falls under the category of sprinkle or drip irrigation system, hence, GST rate ( 6% +6%) 12% which is for the said irrigation system, is not applicable in their case of sprayers.

7.3 Now, we discuss the product Sprayer. Sprayer is a device used to spray a liquid. The sprayers are commonly used for projection of water, weed killers, crop performance materials, pest maintenance chemicals, as well as manufacturing and production line ingredients. In agriculture, a sprayer is a piece of equipment that is used to apply herbicides, pesticides, and fertilizers on agricultural crops. Hence, we are of the view that Sprayers are different from irrigation systems

7.3.1 Hence, we unanimously find that the product of the applicant is a “Portable Sprayers” . we find that the product “Portable Sprayers” under the HSN Code 84244100 is available. Hence, Sprayers are correctly classifiable under the HSN Code 84244100. The correct rate of GST for the product in question is (9% CGST+9% UTGST) 18%.

8. In view of the above discussing and findings, we hereby pronounce Advance Ruling under Sub Section 4 of Section 98 using power vested in us under sub Section 6 of Section 98, Section 96 of the Central Goods and Service Tax Act, 2017 read with Rule 103 of the Central GST Rules, 2017 and defined under Section 14 of the UTGST Act, 2017, as under-

Order/Advance Ruling

1. In the first case against Application dtd 12.09.2018 filed by M/S Aristoplast Products Pvt Ltd, Survey No 45/2-8, Vapi Daman main road, Dabhel, Nani Daman, Advance Ruling is given that the product Plastics Broom-Sticks is classifiable under HSN Code 96032100 as “Others” and the product Plastics Broom-Stick is eligible for concessional rate of tax vide given to the products falling under this head vide Notification No. 1/2017-CT(rate) dtd 28.06.2017 i.e. 5% IGST or 2.5% CGST + 2.5 UTGST.

2. In the Second case against Application dtd 24.09.2018 filed by M/S Aristoplast Products Pvt Ltd, Survey No 45/2-8, Vapi Daman main road, Dabhel, Nani Daman, Advance Ruling is given that the product of the applicant is a “Portable Sprayers” under the HSN Code 84244100. The correct rate for the product in question is IGST or 9% CGST+9% UTGST.

3. The case is disposed off accordingly.