2021-TIOL-1539-HC-RAJ-GST

Mahesh Vegoils Pvt Ltd Vs UoI

GST - No tax is leviable under the IGST Act, 2007, on the ocean freight for the services provided by a person located in a non-taxable territory by way of transportation of goods by a vessel from a place outside India upto the customs station of clearance in India - Notfn 8/2017-Integrated Tax (Rate) and the Entry 10 of the Notfn 10/2017-Integrated Tax (Rate) are declared as ultra vires the IGST Act, 2017 and unconstitutional as they lack legislative competency: HC

- Petition disposed of: RAJASTHAN HIGH COURT

2021-TIOL-1538-HC-RAJ-GST

Lakhpat Trading And Industrys Pvt Ltd Vs UoI

GST - No tax is leviable under the IGST Act, 2007, on the ocean freight for the services provided by a person located in a non-taxable territory by way of transportation of goods by a vessel from a place outside India upto the customs station of clearance in India - Notfn 8/2017-Integrated Tax (Rate) and the Entry 10 of the Notfn 10/2017-Integrated Tax (Rate) are declared as ultra vires the IGST Act, 2017 and unconstitutional as they lack legislative competency: HC

- Petition disposed of: RAJASTHAN HIGH COURT

2021-TIOL-175-AAR-GST

Soft Turf

GST - Applicant sought to know as to whether PVC carpet mats manufactured and supplied by them would be classifiable under Tariff Item 5705 0049 of Customs Tariff Act and attract a tax rate of GST @12% as per Entry 146 of Schedule II of 1/2017-ITR .

Held: I mpugned product under discussion has non-woven material made up of PVC on surface, which is coated/laminated with plastics (PVC), which is not in dispute - Hence, by virtue of said Section 1(h) to Section XI (Textiles and Textile articles), same gets excluded from the scope of being Textile & Textile articles under Section XI i.e. Chapters 50-63 - Though the exposed surface are of non-woven materials, same are excluded from the scope of Textile & Textiles articles, hence the contention for classification in Chapter 57 as Carpets/mats on the ground that the exposed surface of the mat is textiles fails - On the other hand, Chapter 39 includes even textile/plastic combinations also, subject to certain conditions - Relevant factors to decide classification of subject goods rule out classification under Section XI (Textiles and Textile articles) whereas the inclusive provisions of Chapter 39 (more specifically Tariff Head 3918) very well cover impugned goods - Moreover, the applicant has been manufacturing and trading the impugned goods and classifying the same under Chapter 39 in the pre-GST era - The applicant has not brought on record any change in the composition, nature or manufacturing process of the said goods from the pre-GST era to now which has compelled them to approach AAR for classification - The only change noticed is the higher rate of GST for Tariff Heading 3918 than for Tariff Heading 5705 - But, it is settled law that the rate of duty/tax cannot be a criterion for deciding the classification of any product - The classification has to be decided as per the terms of headings, sub-headings and tariff items and the relevant section/chapter notes/sub-notes in terms of the interpretative rules to the Customs Tariff -  AAR holds that the PVC Mats manufactured by the appellant, a sample of which was produced before the Authority, are specifically covered under HSN 3918 as Floor Coverings of PVC in terms of Rule 1 of the Rules of Interpretation of Customs Tariff read with Note 1(h) to Section XI and Note 1 to Chapter 57 - GST is @18%: AAR

- Application disposed of: AAR