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Braided textile yarns used for making ‘Kalava Raksha Sutra’ are classified under heading 5607

October 5, 2019[2019] 110 taxmann.com 84 (AAAR - TAMILNADU)
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GST : 'Kalava raksha sutra' supplied by applicant made of polypropylene yarn was classifiable under 56074900, made of other synthetic yarn was classifiable under 56075090, made of cotton was classifiable under 56079090

• The appellant was engaged in the manufacture of Kalava Raksha Sutra (sacred thread) in different colours and were selling the same in kilograms/lengths to the intra-state buyers as well as inter-state buyers. They had sought advance ruling 'classification of the commodity 'kalava raksha sutra (sacred thread)' manufactured and supplied by them'.

• The original authority for Advance Ruling had ruled that 'Braided textile yarns supplied by the applicant made of polypropylene yarn was classifiable under 56074900, made of other synthetic yarn was classifiable under 56075090, made of cotton was classifiable under 56079090.

• The applicant filed an instant appeal on grounds that while arriving at the above classification, the original authority had held that the commodity manufactured were not by themselves Kalva raksha sutra sold directly to consumers but long lengths of thread of various composition sold in loose rolls to the appellant's buyers who need to further cut to individual sizes to make them kalava sutra.

• The Advance Ruling Authority's finding that the appellant's product kalava raksha sutra which were sold in long lengths of thread of various compositions in loose rolls to their buyers would not fall under serial number 148 under item IX under the head pooja samagiri in notification no. 2/2017 (Rate) and thereby exempt from levy of any GST on the ground that the appellant's buyers need to further cut into individual sizes to make them kalava raksha sutra was against the settled proposition of law.

• The remarks of the lower authority may be treated as expunged/deleted. The ruling of the lower authority is maintained.

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