GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

PROCEEDINGS OF THE

AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present: Sri G. Lakshmi Prasad, Addl.Commissioner(Policy FAC)

Dr. K. Raghavaiah, Jt. Commissioner(All Acts & DMU)

Sri P. Satyanarayana Reddy, Jt.Commissioner (Legal)

*****

A.R.Com/ 52 /2007. Dated 06-10 -2007.

Ref:- CCT's.Ref.No: PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

O R D E R:

I. M/s Dinesh General Stores Kurnool.(TIN 28380273075) have filed an application and sought clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-

II. They sought clarification on the following:

Whether "Snuff" a preparation of powdered tobacco to be chewed, placed against the gums or inhaled through the nostrils, is liable to tax or eligible for exemption as "tobacco" as per entry 47 of the First Schedule read with Section 7 of the AP VAT Act, 2005.

III. The applicant submitted the following documents:

Write up relying on H.C.Judgement and Dictionary meanings

IV. Sri K. Hyder Vali Authorised representative, appeared for hearing and explained the case.

V. The issue has been examined with reference to the provisions of the APVAT Act and Rules and HSN Codes notified by Government vide G.O.Ms.No:398, Revenue (CT.II) Department Dated 31-03-2005 and G.O.Ms.No:490, Revenue (CT.II) Department Dated 15-04-2005 as superceded in G.O.Ms.No.1596, Revenue(CT-II) Dept. dt.27.08.2005, in G.O.Ms.No.1615, Revenue (CT-II), Dept. dt.31.08.2005, G.O.Ms.No.502, Rev. (CT-II) Dept., dt.1-5-2006 w.e.f. 1-5-2006, G.O.Ms.No.656, Revenue (CT-II), Dept. dt.2.06.2006 G.O.Ms.No.795, Revenue (CT-II), Dept. dt.29.06.2006 and the ruling is given as under:

VI. The Government of India vide notification No.1/2007-CST F.No. 34/135/2005 ST dt.29.3.2007 ( Taxation Laws amendment Act 2005) has omitted item 9 i.e. un-manufactured tobacco and tobacco refuse w.e.f. 1-4-2007 from Sec. 14 of the CST Act. The entry, tobacco at entry 47 of the First Schedule to the AP VAT Act was substituted by G.O. Ms. No. 397 dated 31.3.2007 as under:

(a) "Un-manufactured tobacco covered under tariff heading No. 2401 of the Central Excise Tariff Act, 1985 ( 5 of 1986) (b) Bidis (biris) covered under tariff item no. 24031031, 24031039,24031090, of the Central Excise Tariff Act, 1985 (5 of 1986)"

Again by G.O. Ms. No. 933 Rev.(CT_II) Dept. dt. 3-07-2007 w.e.f. 06-07-2007 , the entry 47 was substituted as follows: " Tobacco and manufactured Tobacco but excluding Cigarettes containing Tobacco with excise Code 2402.20 and also excluding Cigarettes with Tobacco substitutes with Excise Tariff Code 2402.90.10".

Again the Government vide G.O.Ms.No.1129 Rev.(CT_II) Dept. Dt. 22.8.2007 inserted entry 6 in the VI Schedule which reads, " Tobacco Products including Gutkha, Khara masala, Khimam, Zarda, Sukha, Sukti except those goods specified in Schedule I and Cigarettes. However, the effective date for implementation of the G.O is yet to be issued.

The commodity, "Snuff" as per Chapter 24 of the Central Excise Tariff Act, 1985, is enumerated at H S N Code 2403.99.40, inder the Head 2403, which enumerates "all other un-manufactured Tobacco and manufactured tobacco substitutes; homogenized or re-constituted Tobacco; Tobacco extracts, and essences.

Therefore, the HSN Code 2403.99.40 is not notified against any commodity of tobacco or un-manufactured tobacco, included in entry 47 of the Ist Schedule to the AP VAT Act. Hence, " Snuff" fall under " manufactured tobacco substitutes", liable to tax @ 12.5%, under the residuary entry of the V Schedule to the AP VAT Act. Therefore it is clarified that "Snuff" is taxable @ 12.5% w.e.f. 1.4.2007.

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.

Addl/Jt.Commissioner