Court :
Rajasthan AAR
Brief :
The Rajasthan AAR, in the case of M/s Balveer Singh [Advance Ruling No. RAJ/AAR/2024-25/2017 dated September 20, 2024] slaked/hydrated lime containing less than approximately 98% of the calcium oxide and calcium hydroxide, are classifiable under CTH 2522 20 00 taxable at 2.5% CGST and 2.5% SGST as per entry SI. No. 131 of Schedule I of Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017 ("the Rate Notification").
Citation :
Advance Ruling No. RAJ/AAR/2024-25/2017 dated September 20, 2024
The Rajasthan AAR, in the case of M/s Balveer Singh [Advance Ruling No. RAJ/AAR/2024-25/2017 dated September 20, 2024] slaked/hydrated lime containing less than approximately 98% of the calcium oxide and calcium hydroxide, are classifiable under CTH 2522 20 00 taxable at 2.5% CGST and 2.5% SGST as per entry SI. No. 131 of Schedule I of Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017 ("the Rate Notification").
Facts:
M/s Balveer Singh ("the Applicant") was unregistered person intending to start business of manufacture and sale of Hydrated Lime, which is used as raw material in various industry, chemical industry, leather industry, sugar industry, dairy industry, water treatment, road construction, etc.
The necessary infrastructure to maintain above product was procured and developed by the Applicant in the due course. The Hydrated Limed proposed to be manufactured by the Applicant consisted of calcium hydroxide less than 96% (ranging from 60% to 96% maximum), which contains atleast 4% impurities such as clay, iron oxide, manganese oxide etc.
The laboratory reports of the analysis of the chemical composition of the sample of slaked/hydrated lime to be manufactured by the Applicant was done at 2 laboratories.
The rate of GST applicable of supply of said Hydrated Lime is given in the Rate Notification. For hydrated lime/ slaked lime, rate of GST has been provided in Sr. No. 131 of Schedule -1 which classifies it under Chapter/Heading/Sub-heading/Tariff item 2522.
The hydrated lime/slaked lime is specifically covered in the description of goods provided against Sr. No. 131 for HSN 2522 whereas Sr. No. 39 of Schedule-III of the rate notification gives a general description for all inorganic chemicals falling under Chapter 28 taxed at 9%.
Hence, aggrieved by the circumstances, the Applicant filed for Advance Ruling.
Issue:
Whether manufacturing of Hydrated Lime containing less than 98% of the Calcium Oxide and Calcium Hydroxide will be classifiable under HSN 2522?
Held:
The Rajasthan AAR, in Advance Ruling No. RAJ/AAR/2024-25/2017 held as under:
Our Comments:
The Rate Notification governs the Central Goods and Services Tax Rate Schedule under Section 9(1)of the Central Goods and Services Tax Act, 2017 which notifies rates of CGST @2.5%, 6%, 9%, 14%, 1.5% and 0.125% on Supply of Goods.
Schedule-2.5%
S. No. |
Chapter / Heading / Sub-heading / Tariff item |
Description of Goods |
(1) |
(2) |
(3) |
131 |
2522 |
Quicklime, slaked lime and hydraulic lime, other than calcium oxide and hydroxide of heading 2825. |
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