Page 85 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : DECCAN TOBACCO COMPANY 171
Bundling Process :
The graded tobacco leaves will be bundled as per the requirement
of customer. This bundled tobacco is further processed into Threshed
lamina or Re dried leaf as such depending upon the requirement of the
customer.
Redrying of tobacco leaves :
Redrying of tobacco is compulsory whether it is in the form of leaf
as such or hand stripped form or threshed lamina form. This process is
mainly done to remove uneven moisture levels in the tobacco leaf and to
add required level of moisture evenly for storing the tobacco leaves long
time. Redrying will not alter the shape or physical or chemical parame-
ters of the tobacco leaf.
Threshing of tobacco leaves :
The leaves are threshed and/or redried, even though there will not
be any change in the tobacco leaf except that the stem is separated, and
the leaves are broken into small pieces during the process.
1 4. Questions raised before the authority :
The applicant had filed an application in Form GST ARA-01, dated 24-7-
2019, by paying required amount of fee for seeking Advance Ruling on the fol-
lowing issues :
(a) What is the rate of GST applicable on tobacco leaves procured at to-
bacco auction platforms or directly from farmers, which are cured
and dried by farmers themselves?
(b) What will be the applicable rate of tax if the applicant purchases to-
bacco leaves form other dealers who have purchased them from
farmers, for the purpose of trading?
(c) What will be the applicable rate of tax if the applicant segregates the
tobacco into grades depending upon their size (width), col-
our/shade, length, texture of the leaf etc., and sells such graded to-
bacco leaf?
(d) What will be the applicable rate of tax if the tobacco leaves are butt-
ed and sold to other dealers?
(e) What is the applicable rate of tax if the applicant gets the tobacco
leaves redried without getting them threshed and sold them?
(f) What will be the applicable rate of tax if the applicant gets the to-
bacco leaves threshed and redried?
(g) What will be the applicable rate of tax if the applicant gets the to-
bacco threshed and redried on job work basis at others’ premises
and then sells such threshed and redried tobacco leaves to others?
On Verification of basic information of the applicant, it is observed that the ap-
plicant falls under State jurisdiction, i.e. Brodipet Circle, Narasaraopet Division,
Guntur.
Accordingly, the application has been forwarded to the jurisdictional of-
ficers of State i.e., Assistant Commissioner (ST) Brodipet Circle, Narasaraopet
Division, Guntur with a copy marked to the Central Tax authorities, Deputy
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1 Paragraph number as per official text.
GST LAW TIMES  13th August 2020  85