Gujarat AAR in the case of Nishith Vipinchandra Shah Pooja Enteroprise

Case Covered:

Nishith Vipinchandra Shah Pooja Enteroprise

Facts of the Case:

M/s. Pooja Enteroprise, 1st Phase, J-14, Old Type Shed, GIDC Vapi, Gujarat, having a GSTIN No.24AAGPPS6774E1ZV, is a company filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the SGST Act.

The applicant has submitted that they are engaged in importing “Plastic Mechanical Liquid Dispensers” from China and sell them in the local market since 2011. These dispensers are used as the caps of bottles. They are used for dispensing liquid either through direct discharge or spray type discharge or foam type of discharge.

The applicant further submitted that till 30.06.2017, they were importing this material under HS Code 3923 (Caps & closure). But after implementation of GST, they were asked to clear the goods under HSN 3926 (Other articles of Plastics) bearing GST of 28%. The applicant further submitted that they were not certain about the HSN of the said imported goods and other competitors were supplying the same product under HSN 8424 and 9616. So, it leads to confusion and, hence, they applied for Advance Ruling on the classification of the imported goods.

Observations:

We have considered the submissions made by the applicant in their application for advance ruling, subsequent submission dated 24.04.2020, and submission made at the time of the personal hearing. We also considered the question/issue on which advance ruling has been sought for by the applicant, relevant facts having bearing on the question/issue raised, Case laws, and the applicant’s understanding/interpretation of the law in respect of the issue. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant’s interpretation of the law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.

In this case, the moot point is to be decided is that:

What is the HSN Code and rate of tax for Plastic Mechanical Liquid Dispenser?

Ruling:

Question: What is the HSN Code and rate of tax for Plastic Mechanical Liquid Dispenser?

Answer: Imported Plastic Items, (stated as Plastic Mechanical Liquid Dispenser) shall be classified, under HSN Chapter sub-heading 3926.90- Others, as “articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or other materials of heading 39.01 to 39.14”. Accordingly, the said products are liable to GST @ 28% (CGST@14% +SGST@14%) till 14.11.2017 and @18% (CGST@9% +SGST@9%) w. e. f. 15.11.2017.

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