Mixing Scent shall Change Character of Raw Unmanufactured Tobacco to Manufactured Tobacco: AAR [Read Order]
Mixing Scent – Unmanufactured Tobacco – Tobacco – Manufactured Tobacco – AAR – Taxscan
Mixing Scent – Unmanufactured Tobacco – Tobacco – Manufactured Tobacco – AAR – Taxscan
The Uttar Pradesh Authority for Advance Ruling (AAR) has held that mixing scent would change the character of raw unmanufactured tobacco to manufactured tobacco.
The applicant Rajiv Pandey was a registered under trade name of Pandey Traders engaged in mixing of scent in the raw/unmanufactured tobacco dust, procured from various traders.
The applicant had sought advance ruling as to Advance Ruling dated 27.06.2022 as to whether processing of unmanufactured tobacco dust by mixing the scent (mixture of various perfumes and not jarda scent) would change the character of unmanufactured tobacco to manufactured tobacco or not.
Harilal Prajapati, who appeared on behalf of the appellant submitted that mixing of scent (mixture of various perfumes and not jarda scent) by the applicant in raw unmanufactured tobacco dust would not make any irreversible change and remains raw unmanufactured tobacco dust only.
He further submitted that as the application of scent on raw unmanufactured tobacco dust would not result in proven irreversible change, the raw unmanufactured tobacco dust would remain raw unmanufactured tobacco dust only, as such the same could not be equated with manufactured tobacco.
The Authority of Rajendra Kumar [(Additional Commissioner, Member (Central Tax)] and Harilal Prajapati [(Joint Commissioner, Member (State Tax)] referring to the Customs Tariff Classification in respect of chapter 2401 observed that in applicant’s case mixing of tobacco dust with scent ,(mixture of various perfumes and not jarda scent) was a cumulative process of manufacturing and resulted in different and irreversible goods i.e. manufactured chewing tobacco and classifiable under the specific heading under CTH 24039910.
The authority therefore held that the processing of unmanufactured tobacco dust by mixing the scent (mixture of various perfumes and not jarda scent) would change the character of unmanufactured tobacco to manufactured tobacco.
To Read the full text of the Order CLICK HERE
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