Page 130 - GSTL_14th May 2020_Vol 36_Part 2

232 GST LAW TIMES [ Vol. 36
137A 4410 Particle Board, Oriented Strand Board and similar
board (for example, wafer board) of wood or other
ligneous materials, whether or not agglomerated with
resins or other organic binding substances, other than
specified boards.

2.2 The Applicant, vide attached sheet “Annexure C” to their applica-
tion dated 6-4-2018, has submitted the Statement containing the applicants inter-
pretation of law and/or facts, as the case may be, in respect of the aforesaid ques-
tion (i.e. applicant’s view point and submissions on issues on which the advance
ruling is sought is as follows :
(a) Particleboard is a composite panel product consisting of cellulosic
particles of various sizes that are bonded together with a synthetic
resin or binder under heat and pressure. Particle geometry, resin
levels, board density and manufacturing processes may be modified
to produce products suitable for specific end uses.
(b) Particle boards falling under Heading 4410 of the Customs Tariff
Act are a flat product board manufactured in various lengths,
widths and thicknesses by pressing or extrusion, and it is usually
made from wood chips or particles obtained by the mechanical re-
duction of round-wood or wood residues, and also from other lig-
neous materials such as fragments obtained from Bagasse, bamboo,
cereal straw, or from flax or hamp shives.
(c) Thus, the particle boards can be obtained from particles of various
items such as wood particles, bamboo, bagasse etc., however, each
of the product is different based on its characteristics like density,
strength, flexibility, thickness, Swelling, Water Absorption, Screw
withdraw, Internal bond strength etc. and on examination of all the-
se criterions, one can observe that particle boards of woods are dif-
ferent from those made of vegetable fibers such as flax, straw, ba-
gasse etc..
(d) The applicant is planning to start a factory for the manufacturing
particleboard. The product will contains the following component :
(1) Bagasse - 75%
(2) Wood Particles - 25%
(3) Resins - 5 kgs.
(e) This product is known in the market as bagasse based parti-
cleboard. The question before the Hon. Authority is whether ba-
gasse based Particle Board manufactured with a composition of 75%
bagasse, 25% of wood particles and 5 kgs. of resins falls under Serial
No. 92 of Schedule II (GST rate 12%) or under Sr. No. 137A of
Schedule III (GST rate 18%) of the Notification No. 1/2017-
Integrated Tax (Rate), dated 28-6-2017.
(f) Generally, all types of particle boards are covered under the Head-
ing 4410 vide Sr. No. 137A of Schedule-III of the Notification No.
1/2017-IGST (Rate), dated 28-6-2017. Sr. No. 137A is comprehensive
and covers all type of particleboards. The relevant description of Sr.
No. 137A of Schedule-III is reproduced as under :

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