Page 118 - GSTL_13th August 2020_Vol 39_Part 2

204 GST LAW TIMES [ Vol. 39
ing which provides the most specific description and provides for the essential
characteristic of the product shall be preferred to headings providing a more
general description. Hence, Sr. No. 92 to Schedule-II of Notification No. 1/2017-
C.T. (Rate) provides the most specific description for gypsum boards reinforced
with glass-fiber and hence the impugned products qualify for concessional rate
of tax under the said entry of the notification.
2.8 Citing case laws, applicant has submitted that where two interpre-
tations are possible, the interpretation beneficial to the assessee should be adopt-
ed and since the entry “Glass-fibre reinforced gypsum board”, which attracts 12%
rate of tax, is more beneficial to the applicant than the entry “Faced or reinforced
with paper or paperboard only” which attracts 18% rate of tax, the applicant can
classify its product under the former entry.
2.9 Subject product in commercial/market parlance is identified as
GRG board irrespective of the quantity of glass-fibre present in the product. Ref-
erence in this regard is made to the decision of the Hon’ble Supreme Court in the
case of CCE, New Delhi v. Connaught Plaza Restaurant (P) Ltd. reported at 2012
(286) E.L.T. 321 (S.C.), and applying the principles of corumercial/market par-
lance, it is submitted that the proposed product in question is rightly classifiable
under Serial No. 92 to Schedule-II of the Notification No. 1/2017-C.T. (Rate) as
‘Glass-fibre Reinforced Gypsum Board’ even though such resultant product does
not conform with IS standards as prescribed by the government for a GRG
board.
2.10 Applicant vide letter dated 6-11-2019 submitted that proposed
product will fall under Heading No. 68.09 of the Customs Tariff Act and similar
products in the market are cleared at 12% GST claiming benefit of the above said
notification.
3. Contention - As per the jurisdictional officer
3.1 The proposed product is not yet manufactured and hence in ab-
sence of any sample of said product being tested from accredited laboratory to
determine exact nature of the product, its classification cannot be arrived, at this
stage. As such no comment can be offered on the said matter.
1 3.4 As regards to the applicability of concessional rate of tax under
Notification No. 1/2017-C.T. (Rate), dated 28-6-2017, in relation to supply of
“Glass-fiber Reinforced Gypsum Board”, it is submitted that, once the product is
manufactured the same will be got tested from accredited laboratory to deter-
mine exact nature of the product so that proper conclusion can be arrived at.
4. Hearing
4.1 Preliminary hearing in the matter was held on 10-12-2019. Shri Ni-
rav Karia, and Shri Vatsal Bhansali, both Advocates, appeared, and requested for
admission of their application. Jurisdictional Officer Shri Vijay Lande, Superin-
tendent, Division-V, Range-V, Mumbai East, CGST also appeared.
4.2 The application was admitted and called for final hearing on 11-2-
2019. Shri Nirav Karia and Shri Vatsal Bhansali, both Advocates, appeared along
with, Ms. Ida Gonsalwis and Shri Prashant Patil, both, Authorized Representa-
tives and made oral and written submissions. Jurisdictional Officer Shri Vijay
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1 Paragraph number as per official text.
GST LAW TIMES  13th August 2020  118