Page 131 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : PRAYAGRAJ DYEING & PRINTING MILLS PVT. LTD. 233
“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.”
(g) However, Sr. No. 92 of Schedule-II of the Notification No. 1/2017-
IGST (Rate), dated 28-6-2017 specifically covers some of the boards
viz. Cement Bonded Particle Board, Jute Particle Board, Rice Husk
Board, Glass-fibre Reinforced Gypsum Board (GRG), Sisal-fibre
Boards, Bagasse Board, Cotton Stalk Particle Board and parti-
cle/fibre board manufactured from agricultural crop residues.
(h) Further, explanation (iv) of the Notification No. 1/2017-IGST (Rate),
dated 28-6-2017 provides that, “The rules for the interpretation of the
First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the
Section and Chapter Notes and the General Explanatory Notes of the First
Schedule shall, so far as may be, apply to the interpretation of this notifica-
tion.”
(i) As per Rules for the Interpretation of the First Schedule of the Cus-
toms Tariff Act, 1975 (51 of 1975), for mixture and composite goods
Rule 3 is applicable, the same is reproduced for ready reference :
“3. When for any reason, goods are prima facie, classifiable un-
der two or more Headings, classification shall be effected as follows :-
(a) The Heading which provides the most specific de-
scription shall be preferred to Heading providing a more general
description.
(b) Mixtures and composite goods which consist of dif-
ferent materials or are made up of different components and
which cannot be classified by reference to (a) shall be classified
as if they consisted of the material or component which gives the
goods their essential character, in so far as this criterion is appli-
cable.
(c) …..”
(j) As per the Rule 3(a) of classification rules, the specific entry shall
prevail over the general entry. Based on interpretation of Rule (3)(a),
GST rate applicable on bagasse board is 12% as the same is specifi-
cally covered under S. No. 92 whereas S. No. 137A covers all type of
particleboard that is a general description. Further, as per Rule 3(b)
of the classification rules, in case of mixture/composite goods con-
sisting of different materials or made up of different components
the goods shall be classified as if they consisted of the material or
component which gives them their essential character. In the ba-
gasse-based particleboards the predominant raw material will be
“bagasse” even though it will contain some mixture of wood-
particles. The predominant raw material being bagasse the particle
board manufactured shall be “bagasse board” as is known in trade
parlance. Therefore, as per the applicant’s understanding their
product will fall under Sr. No. 92 of Schedule-II of Not. 1/2017-
IGST (Rate), dated 28-6-2017 which provides for 12% GST rate for
“Bagasse Board” falling under Chapter 44 or any chapter.
GST LAW TIMES  14th May 2020  131