Facts: M/s. Veeram Natural Products, he is a manufacturer of Aluminium foil disposable container by moulding/die punching process with Aluminium foil falling under SH76071991 as the raw material. The Aluminium foil disposable container is used for packing food in kitchen and dining tables and they supply the disposable container on payment of tax under SH No.76151030 of GST tariff. The Applicant has stated that they purchase raw materials on payment of GST 18% and the GST payable under SH76151030 is 12% (6% CGST & 6% SGST). Thus, there was accrual of excess credit of input tax due to inverted tax structure between the raw material and finished products supplied.
Issues Involved: The applicant is seeking for Advance Ruling on
What is the appropriate classification for Aluminium foil disposable container manufactured by them under GST.
Held: The Hon’ble AAR of Tamil Nadu vide Order No. 4/AAR/2018 dated July 30, 2018 has not admitted the application for Advance Ruling dated 13.06.2018 of M/s. Veeram Natural Products, under sub-section (2) of section 98 of the CGST Act, 2017 and the TNGST Act, 2017. Authorised Representative of the applicant stated that a Show cause Notice has been issued to them for rejection of refund under the stand that the classification was incorrect. Another Show cause Notice was given for demand of duty; The proceedings are not yet completed. First Proviso to Section 98(2) of the CGST/TNGST Act 2017, states that. “Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act”.
In view of the above, in the present case as the question raised by the applicant in the application is already , in the case of the applicant themselves, the application is not admissible under the said provisions and therefore liable for rejection.
Citation: [2018] 97 taxmann.com 159 (AAR- TAMIL NADU)