Aluminium Foil Container is classifiable under 7615 with applicable GST rate

The Madras High Court has ruled that aluminium foil containers should be classified under Chapter Heading 7615 of the Customs Tariff Act, 1975. This classification means they are subject to a 12% Goods and Services Tax (GST) rate. The court's decision followed a Supreme Court judgment and overturned the department's contention that these products should be classified under heading 7607, which would attract an 18% GST rate.

The Hon'ble Madras High Court in the case of M/s Veeram Natural Products v. Commissioner of GST & Central Excise, Madurai [Writ Petition (MD) Nos. 9446 to 9452 of 2024 dated July 03, 2024] held that the aluminium foil container is classifiable under Chapter Heading 7615 of the Customs Tariff Act, 1975 with 12% of GST based on Apex Court Judgment.

Facts:

M/s Veeram Natural Products ("the Petitioner"), classified their products under the heading 7615 of Customs Tariff Act, 1975 as 'Table, kitchen or other household articles of aluminium'.

The Department contended that products are liable to be classified under the heading of 7607 as 'Aluminium foil container' which attracts 18% of GST.

However, the Commissioner of CGST & Central Excise ("the Respondent") is claiming the product would come under the Chapter heading 7607 with 18% of GST.

The Respondent has passed the Order-in-Original dated June 21, 2022 ("the Impugned Order-1")and thereafter, passed the Common Order- in- Appeal July 04, 2023 ("the Impugned Order-2") against the Petitioner.

Hence, aggrieved by the Impugned Orders, the Petitioner has filed the present writ petition before the Hon'ble Madras High Court for the assessment period from June 2018 to June 2021.

Issue:

Whether product Aluminium Foil Container is classifiable under 7615 with GST 12%?

Held:

The Hon'ble Madras High Court in Writ Petition (MD) Nos. 9446 to 9452 of 2024 held as under:

· Relied on,M/s Veeram Natural Productsv. Commissioner of GST & Central Excise, Madurai [Writ Petition (MD) Nos. 6485 to 6492 of 2023 dated September 13, 2023] against the order dated October 28, 2020, where the Court had disposed the writ petition by following the order of the Hon'ble Supreme Court in the case of Commissioner of Central Excise v. Hindalco Industries Limited [Civil Appeal No. 7561 of 2009 dated February 08, 2023] held that the product Aluminium Foil Container is classifiable under 7615 with GST 12%.

· Held that, while dropping the demand in the aforesaid proceedings for the period commenced from July 2022- December 2022. Hence, the writ petition was allowed and consequently, the amount, that was pre-deposited by the petitioner, was directed to be refunded in accordance with law within 30 days.

Our Comments:

The Entry for classification is provided by Ministry of Finance vide Notification No. 01/2017- Central Tax (Rate) dated June 28, 2017:

S. No. 275A was inserted vide Notification No. 41/2017 dated November 14, 2017. It was applicable from November 15, 2017. Further, milk cans made of aluminium were inserted in the description vide Notification No. 02/2024-Central Tax (Rate) dated July 12, 2024. It was applicable with effect from July 15, 2024.

OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED