Grasim Industries Limited ., In re
Date: June 24, 2024
Subject Matter
Classification of debarked eucalyptus wood: Application withdrawal allowed
Summary
In the case of Grasim Industries Limited, the applicant, a manufacturer of Viscose Staple Fibre, sought an advance ruling to clarify the proper GST classification for Debarked Eucalyptus wood, a raw material they use. The wood was classified under varying HSN codes by different suppliers, leading to different GST rates (18% under HSN 4403 9800 and 5% under HSN 4401 3900). The applicant argued the wood should fall under HSN 4403, thus subject to an 18% GST rate. However, the AAR ruled that the applicant could not request an advance ruling for inputs or consumables as outlined in Section 95(a) of the CGST Act. Subsequently, the applicant withdrew their application via email on March 14, 2024, and the AAR permitted this withdrawal, resulting in the application being disposed of as withdrawn.
M/s. Grasim Industries Limited, P.B. Road, Kumarapatnam, Haveri, Karnataka 581123 having GSTIN 29AAACG4464B1ZU have filed an application, online, for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017.
2. The Applicant stated that they are manufacturers of Viscose Staple Fibre (HSN 55041000), Sodium Sulphate (HSN 28331990), Sulphuric Acid (HSN 28070010) and Carbon Di-Sulphide (HSN 28131000); the main raw material for manufacture of Viscose Staple Fibre is “wood pulp”, manufactured by consuming Debarked Eucalyptus pulp wood, which is being procured by the applicant from different suppliers in Karnataka, in the form of logs and in rough condition, who classify the same under HSN 4403 9800 and charge 18% GST; some of the suppliers are supplying the similar wood classifying the same under HSN 4401 3900 and charging GST of 5%.
3. In view of the above, the applicant has sought advance ruling in respect of the classification of the Debarked Eucalyptus wood. The applicant contended that the impugned product merits classification under Chapter heading 4403 and accordingly attracts 18% GST.
4. The applicant, though can’t seek advance ruling in respect of the inputs /consumables being procured by them as the question has to be in relation to their outward supply being undertaken or proposed to be undertaken in terms of Section 95(a) of the CGST Act 2017, has not submitted the hard copies of the instant application and on enquiry informed through e-mail dated 14.03.2024 that they intend to withdraw the application and requested to permit them to withdraw the instant application.
5. In view of the above, we pass the following,
RULING
The application filed by the applicant for advance ruling is disposed off as withdrawn.