Broomsticks Made Up Of Plastic Not Using Vegetable Material Taxable w.e.f 22.09.2017: CESTAT
Mariya Paliwala
24 May 2024 11:00 AM GMT
The Ahembadad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that broomsticks made up of plastic not using vegetable material are taxable with effect from September 22, 2017.The bench of Somesh Arora (Judicial Member) and Raju (Technical Member) has held that broomsticks are made up of plastic and do not use a vegetable material alone are taxable...
The Ahembadad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that broomsticks made up of plastic not using vegetable material are taxable with effect from September 22, 2017.
The bench of Somesh Arora (Judicial Member) and Raju (Technical Member) has held that broomsticks are made up of plastic and do not use a vegetable material alone are taxable w.e.f. September 22, 2017 in Notification No. 01/2017 since, after amendment, the broomsticks fall under Serial No. 260 of Notification No. 01/2017 and have to be of other than Chapter Heading No. 96031000 and therefore have to be broomsticks of other than twigs and vegetable materials.
The appellant/assessee imported broom sticks, which were classified by the appellant under customs tariff heading 9603 1000. The appellant claimed IGST exemption under Sr. No. 144 of Notification No. 02/2017 dated June 28, 2017, prescribing the NIL IGST rate under Sr. No. 144 of the notification.
The department opined that the goods should be classified under Customs Tariff heading 9603 1000 under Sr. No. 260 of Notification No. 01/2017 dated June 28, 2017, attracting 5% IGST.
In terms of notification no. 02/2017-IGST Muddhas made of sarkanda and phool bahari jhadoo are chargeable to NIL IGST.
The dispute is whether the product imported by the appellant falls under the category of muddhas made of sarkanda, brooms, or brushes, consisting of twigs or other vegetable materials, bound together, with or without handles, or not.
Initially, all broomsticks were classified under Serial No. 260 of Notification No. 01/2017, w.e.f. June 28, 2017 up to September 22, 2017, i.e., the date of Notification No. 27/2017, with effect from this date under Serial No. 260, Chapter Heading No. 9603 in the numeric portion of the notification from Tariff Heading No. 9603 (other than 96031000). In the descriptive portion, instead of “broomsticks," “broomsticks” other than brooms consisting of twigs for other vegetable materials bound together, with or without handles,” came to be mentioned. Simultaneously, vide Rs. No. 144 of Notification No. 28/2017-CT Rate dated September 22, 2017 (reproduced supra), Serial No. 144 of Notification No. 02/2017-CT dated January 28, 2017 came to be amended.
The tribunal noted that from September 22, 2017, brooms were divided into two categories, and the term “broomsticks” also came to be divided into two categories, i.e., “brooms or brushes consisting of twigs or other vegetable material bound together with or without handles” and brooms and broomsticks, which were other types, i.e., material other than vegetative materials, etc.
The tribunal held that the Commissioner (Appeals), while deciding classification, should keep the discussion in mind while working into the demand period and related statutory changes. It should first decide about the nature of broomsticks and brooms and their classification with statutory changes.
The court remanded the matter back to decide the nature of the goods.
Counsel For Appellant: Naveen Bindal, Nikita Jaju
Counsel For Respondent: Girish Nair
Case Title: Rajat International Versus Commissioner Of Customs-Mundra Customs
Case No.: Customs Appeal No. 10682 Of 2023