2025(02)LCX0355(AAAR)

ALUDECOR LAMINATION PRIVATE LIMITED

decided on 20-02-2025

TELANGANA STATE APPELLATE AUTHORITY FOR ADVANCE RULING
(Goods and Services Tax)
1^st Floor, Commercial Taxes Complex, M.J. Road, Nampally,
Hyderabad 500 001

Order-in-Appeal No. AAAR/04/2025
(Passed under Section 101 (1) of the Telangana Goods and Services Tax Act, 2017)

PREAMBLE

1. In terms of Section 102 of the Telangana Goods and Services Tax Act, 2017 (TGST Act, 2017 or the Act), this Order may be amended by the Appellate Authority so as to rectify any error apparent on the face of the record, if such error is noticed by the Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant within a period of six months from the date of the order. Provided that, no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the applicant or the appellant has been given an opportunity of being heard.

2. Under Section 103 (1) of the Act, this advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only.

(a) On the applicant who had sought it in respect of any matter referred to in sub-Section (2) of Section 97 for advance ruling;

(b) On the concerned officer or the jurisdictional officer in respect of the applicant.

3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.

4. Under Section 104 (1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-Section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made.

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Subject: GST - Referral from Telangana State Authority for Advance Ruling under Section 98(5) since there was no uniform opinion arrived by the Members of the Authority for Advance Ruling in TSAAR Order No.16/2022 dt. 12.4.2023 - Order passed - Regarding.

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1. The subject case is taken up on a referral from the Authority for Advance Ruling Order No: 05/2023 dated: 12.04.2023 passed by the Telangana State Authority for Advance Ruling (Goods and Services Tax) (“Advance Ruling Authority” / “AAR” / “Lower Authority”) in respect of M/s. Aludecor Lamination Private Limited (GSTIN: 36AAECA8253G2ZN) (hereinafter referred in short as “the applicant”) under Section 98(5) of the Telangana Goods and Services Tax Act, 2017. The ground for reference to the Appellate Authority is that two different views were expressed by the members on the Question No: 1, i.e., whether Aluminium Composite Panel/Sheet is covered under HSN 3920 or HSN 7606 or 7610.

2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are identical except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act.

Brief facts of the case:

3.1 The applicant has submitted that he is engaged in manufacturing of Aluminium Composite Panel/Sheet, (hereinafter referred as “ACP Sheets”). In common parlance the product of the applicant is called as “Aluminium Composite Panel”, often it is called as “Sandwich Panel” or “ACP Sheet”.

3.2 It is used by Railways in coach building and also other purposes by commercial buildings as outside walls for protection from heat, advertisement boards, construction of pedestrian bridges, etc.

3.3 Based on the above facts, the applicant requested Advance Ruling on following points,

i. Whether Aluminium Composite Panel/Sheet is covered under HSN 3920 or HSN 7610 or HSN 7606?

ii. Rate of SGST and CGST applicable on the same.

3.4. 4. Vide the impugned order, the lower authority has given the following advance ruling on the questions raised by the applicant:

Ruling passed by the State Member:

Ruling passed by the Central Member

Details of Personal Hearing:

4. Personal Hearing was held on 17.02.2025. Shri Bharat M. Shah, Tax Practitioner, appeared on behalf of the applicant. The Tax practitioner reiterated the written submissions made in their application before the lower authority and requested to consider the same.

Discussion and Findings:

5.1 1 This authority has carefully gone through the case records and submissions made by the applicant.

5.2 On perusal of the ruling of AAR, it is observed that State Member opined that the said commodity is neither plastic nor aluminum wholly and as such cannot be classified either as plastic or aluminum based on materials it contains and as such, subject goods do not fall under any of the Tariff Headings 3920 or 7604 or 7610. However, the ruling of State Member is otherwise silent on classification of subject goods. On the other hand, the Central Member has held that said goods are classifiable under Tariff Heading 7606 as per Rule 3 (b) of the General Rules for the Interpretation of the Customs Import Tariff. Nevertheless, both the Members have expressed uniform opinion with regard to the applicability of rate of tax, i.e., 18% (9% CGST + 9% SGST).

5.3 Having perused the rulings of both the Members of AAR, we find that the Central Member has examined the matter in detail, in line with rules for interpretation of tariff and various case laws. It has been brought out that the rates of GST are specified as per “tariff item”, “sub-heading”, “heading”, and “chapter” mentioned in the schedules to the relevant notifications, which are as specified in the First Schedule to the Customs Tariff Act, 1975. It is also specified that the rules of interpretation of the First Schedule to the Customs Tariff Act shall also apply to the interpretation of these notifications. In this light, the Central Member has applied Rule 3(b) of the General Rules for Interpretation of Tariff to hold that the subject goods would fall under Chapter 76, since essential character in respect of the ACPs is given by Aluminum. The Central Member has thereafter ruled out the contending Heading 7610 as the subject goods are not Aluminum structures and parts of structures. Thereafter, following the decision of CESTAT in the case of Commissioner of Customs (Imports) Chennai Vs ICP India Pvt. Ltd. {2018 (7) TMI 546-CESTAT Chennai}, the Central Member has held the goods to be classifiable under Heading 7606.

5.4 We find that the classification of goods “Aluminum Composite Panels” has subsequently also been considered by the CESTAT. In the case of Alufit India Pvt. Ltd Vs. Commissioner of Customs {(2024) 14 Centax 187 (Tri - Bangalore)}, the Tribunal has followed the decision in the case of ICP India Pvt Ltd. (supra). Similar view has been taken by the CESTAT in the case of Commissioner of Customs Vs Chandan Exports {(2024) 15 Centax 74 (Tri - Ahmedabad)}. Further, in the case of present applicant itself, the Maharashtra AAR has also ruled accordingly {2022 (56) GSTR 245 (AAR-GST-Mah.)}. Therefore, we are in agreement with the view taken by the Central Member.

6. In view of the above, the following order is passed in reference.

ORDER

The view taken by the Central Member in the Order dated 12.04.2023 is upheld and it is, accordingly, ruled that the Aluminum Composite Panel/Sheets are classifiable under Heading 7606.

To
M/s. Aludecor Lamination Private Limited
Sy No.19,Ground Floor, Gopal Reddy Estate,Medchal Road
Kompally, Qutubullapur Mandal,Medchal Malkajgiri-500100

Copy to:

1. The Telangana State Authority for Advance Ruling, CT Complex, MJ road, Nampa ily, Hyderabad-500001.
2. The Principal Chief Commissioner of Central Tax & Customs, Hyderabad Zone-for information and for forwarding copies of the order to the concerned/ Jurisdictional officer of Central Tax.
3. The Commissioner of State Tax, Telangana state - for information and for forwarding copies of the order to the concerned/ Jurisdictional officer of Central Tax.