Page 83 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : DECCAN TOBACCO COMPANY 169
ibid with GST rate of 28% (CGST 14% + SGST 14%) whether redrying and
threshing done by applicant themselves or getting it done on job work basis at
others’ premises and then sells such threshed and re-dried tobacco leaves to
others. [para 7]
Ruling partly in favour of assessee
CASES CITED
Commissioner v. M.L. Agro Products Ltd. — 2018 (16) G.S.T.L. J76 (S.C.) — Referred .................. [Para 5]
D.S. Bist & Sons — (1979) 4 SCC 741 — Referred ................................................................................... [Para 5]
M.L. Agro Products Ltd. v. Commissioner — 2017 (6) G.S.T.L. 94 (Tribunal) — Referred ............. [Para 5]
Pragathi Enterprises — 2018 (19) G.S.T.L. 327 (A.A.R. - GST) — Relied on ....................................... [Para 5]
Shalesh Kumar Singh — 2018 (13) G.S.T.L. 373 (A.A.R. - GST) — Referred ...................................... [Para 5]
DEPARTMENTAL CLARIFICATIONS CITED
C.B.E. & C. Instruction F. No. 322/2/2017-TRU, Dec., 2017 ......................................................... [Paras 5, 7]
REPRESENTED BY : Shri Y. Srinivasa Reddy, Advocate, for the Assessee.
[Order]. - Proceedings : The present application has been filed u/s. 97 of
the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act,
2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s.
Deccan Tobacco Company, Guntur (hereinafter referred to as applicant), regis-
tered under the Goods & Services Tax.
2. The provisions of the CGST Act and APGST Act are identical, except
for certain provisions. Therefore, unless a specific mention of the dissimilar pro-
vision is made, a reference to the CGST Act would also mean a reference to the
same provision under the APGST Act. Further, henceforth, for the purposes of
this Advance Ruling, a reference to such a similar provision under the CGST or
APGST Act would be mentioned as being under the GST Act.
3. Brief facts of the case :
The applicant is registered under GST vide GSTIN : 37AAHFD1174H1ZI
and also registered with the Tobacco Board as a packer and exporter of Tobacco.
The applicant deals in purchase and sale of tobacco of all varieties and forms. He
also undertakes the operations of threshing and re-drying of tobacco leaves to
make the agricultural produce marketable, mostly in overseas market. After the
introduction of GST, Tobacco is brought under the taxability from the stage of
tobacco leaves. The applicable rates of unmanufactured tobacco are covered un-
der two heads under the tariff which are as under vide Notification No. 1/2017-
Central Tax (Rate), dated 28-6-2017, both having the same HSN Code of 2401, as
shown below :

Sl. Schedule HSN Product Description Rate of GST
No.
1 Schedule-I : 2401 Tobacco Leaves CGST 2.5% + SGST 2.5%
Sl. No. 109 i.e. total GST = 5%
2 Schedule-IV : 2401 Unmanufactured CGST 14% +SGST 14%
Sl. No. 13 Tobacco; tobacco i.e. total GST = 28%
refuse (other than
tobacco leaves)

The applicant opines that though there is clarity as to the product description in
the above two headings, since the terms “Tobacco leaves’ and ‘Unmanufactured
GST LAW TIMES  13th August 2020  83