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TAMILNADU ADVANCE RULING AUTHORITY

PAPJM Buildings, IstFloor, No.l, Greams Road, Chennai-6o0 006.
PROCEEDINGS oF THE AUTHORITY FoR ADVANCE RULING u/s.98 oF THE
GOODS AND SERVICES TAX ACT 2OL7.

Members present are:

1. Ms. Manasa Gangotri Kata, IRS, Joint Commissioner/Member,

office of the commissioner of GST & central Excise, chennai.
and
2.Thiru Kurinjiselvaan v.s., M.sc.(Agri.), M.B.A., Joint commissioner (sT)/Member
office of the Authority for Advance Ruling, Tamil Nadu, chennai-6

ORDER No. 54/ARA/2O19 Dated: 23.12.2O19

GSTIN Number, if any / User id 33AAGCBB40IPLZ7
Legal Name of Applicant M/s. PAPAKA HERBS & SPICES PRIVATE Ltd.
Trade Name of The applicant M/s. PAPAKA HERBS & SPICES PRIVATE Ltd-
Registered Address / Address 205, City Center Road, 2"d Floor,
provided while obtaining user id 232 Purasawalkam High Road,
Chennai 600 010.
Details of Application ARA No. 32/2079 dated 19.08.2019
Concerned Officer State :The Assistant Commissioner (ST),
Ayanavaram Assessment Circle
F50, I st Main Road, ICICI Wealth
Management Building,
Annanagar, Chinthamani- 600 IO2.
Centre : Chennai North Commissionarate.
Nature of activity(s) (proposed /
present) in respect of which advance
ruling sought for
Supply of Goods.
Description (in brief) Sale of Rice Husk Board
Issue/s on which advance ruling l.Classification of the goods
required 2. Applicability of a Notification issued under
the provisions of the Act
Question(s) on which advance ruling Whether the Rice Husk Board marmfactured
is required by the applicant comprising of Natural Fibre
(Rice Husk Powder); Calcium carbonate.
recycling waste and other processing aid as
well as PVC resin, wherein pVC acts only as a
bonding agent would remain classified as
wood and Articles of Wood under Chapter 44
and attract I2o/o rate of GST.

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Note: Any appeal against this Advance Ruling order shall lie before the
Tamil Nadu state Appellate Authority for Advance Rulings, chennai as
under sub-section (1) of CGST Act I TNGsr Act2oL7, within 3o days
from the date on the ruling sought to be appealed is communicated.

At the outset, we would like to make it clear that the provisions of

both the central Goods and service Tax Act and the Tamil Nadu Goods
and service Tax Act are the same except for certain provisions.
Therefore, unless a mention is specifically made to such dissimilar
provisions, a reference to the central Goods and service Tax Act would
also mean a reference to the same provisions under the Tamil Nadu
Goods and Senrice Tax Act.

M/s. PAPAKA HERBS & SPICES pvt Ltd.,

No. 205, city center Road, 2na
Floor,232 Purasawalkam High Road, Chennai 600 O1O. (hereinafter referred as
Applicant) is registered under the GST Act 2or7 vide GSTIN No.
33AAGCB84OIPIZI. They are engaged in the manufacture of "Natural Fibre
Composite Board (NFC) and their manufacturing facility is at 1/138 Ellammankoil
Street, Azhinjivakkam Post, Athipedu Village Sholavaram, Chennai 600 067. The
applicant has sought Advance Ruling on the following question:
Whether the Rice Husk Board manufactured. bg the appticant compising of
Natural Fibre (Rice Husk Powder); Calcium carbonate, recgcling uaste and.
other processing aid as weII as PVC resin, tuherein PVC acts onlg as a
bonding agent would remain classifi.ed as wood. and" Artictes of Wood. und.er
CLmpter 44 and attract 12% rate of GST.

The applicant submitted a copy of challan evidencing payment of application fees of

Rs.S, 000/- each under sub-rule (1) of Rule 104 of cGST rules 20 tT and, SGST
Rules 2017.

2.r The applicant has stated that one of the products manufactured bv them
is the Rice Husk Board. They procure rice husk from the farming community, rice
mills or other traders who supply rice husk accord.ing to their requirement. Firstly,
the rice husk, is pulverized into a fine powder and then the powdered rice husk
otherwise known as natural fibre are derived from the agro-residuals. Thereafter,
the natural fibre, is mixed with lime powder (calcium carbonate), processing
additives such as lubricants, foaming agents, foam regulators, heat stabilizers, etc.
PVC resin is used as a binding agent. The quantity of each part of raw material for
the manufacturing process of the above mentioned product is produced below:

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ITEM % QTY
Rice Husk eo- 30.00
Calcium Carfo
14.00
Recycling *a"t"
18.00
PVC
26.OO
Processing rtd" 8.00
Lubricant
,Trll rn
4.OO
A t
100.oo
Subsequently, the
"o-p ugh a
screw-barrel and mould at a preset temperature and pressure. The compound
melts under high temperature in the screw-barrel and
is released through the
mould and is transferred to a thickness calibration
unit. Later chilled water passes
through -the calibration unit in order to settle the thickness
and to cool the board.
The width of the sheets is maintained according
to the width of the mould, which is
generally 135omm' whereas, the thickness of
such sheets is controlled with the
flow and opening of the mould the sheet comes
out as a continuous process and.
travels upto a pulling unit called haul 0ff. In order
to maintain the width of 7220
mm i'e 4 feet, the automatic system fitted with the
machine runs continuously to
trim the sides. whereas, the automatic system fixed at
the end of the machine
allows the board to cut at a length of 244omm
i.e. B feet. This way, a NFC board is
manufactured in 244omm x r22omm (B feet
X 4 feet). These boards are
manufactured in various thicknesses ranging from
6mm to 25mm. They are then
calibrated once again with the help of surface sanding
machine.

2.2 The applicant has further stated that the

dominant raw material used
for the Rice Husk Board is the rice husk along with
calcium carbonate. The pvc
used by the applicant is only a binding agent of
raw materials used in the making
of the Rice Husk Board' The correct classification
of these items and the applicable
rate of GST are the issues on which advance
ruling is sought by the appricant.

2.3 on the interpretation of raw, the applicant has submitted

that the naturar
fibre i'e the powdered rice husk and the carbonated
calcium are used in larger
proportion for making the Rice Husk Board. pVC
The which is otherwise known as
Thermoplastic polymers is a naturally white and
brittle plastic. The very purpose
of the PVC used by the applicant is to bind the raw
materials together in order to
get the desired output i.e the Rice Husk Board.
Thus, the natural fibre is the
dominant raw material used for the production
of the said board. wood and

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Articles of Wood, etc., is classified under Chapter 44 and Particle Board, Oriented
Strand Board (OSB) and similar board (for example, wafer board) of wood or other
ligneous materials, whether or not agglomerated with resins or other organic
binding substances, other than specified boards, exclusively falls under Heading
44,10, On examination of the explanatory notes to HSN, it is observed that the
product in questlon falls under Heading 41,10 for the reasons explained below.
Particle board is a flat product manufactured in various lengths, widths and
thicknesses by pressing or extrusion. It is usually made from wood chips or
particles obtained by the mechanical reduction of round wood or wood
. residues. It
may also,be produced from other ligneous rnaterials such as
fragmentr obtained from bagasse, bamboo, cerial straw or from flax or herfip
shives. Particle board is normally agglomerated by means of an added
organic binder, usually thermosetting resin, which generally does not exceed
15%o of the weight of the board.
The chips, particles or other fragments constituting the particle boards of this
heading are usually recognizable at the edges of the board with the naked eye.
However, in some cases, _microscopic examination may be required to distinguish
the particles and fragments from the ligno-cellulosie fibres characterizing the,
fibreboard of heading 44.17. The particle boards are usually sanded. Moreover,
they may be impregnated with one or more substances not essential for the
agglomeration of their constituent materials but which confer on the board an
additional property, e.g., impermeability to water, resistance to rot, insect attack,
fire or the spread of flame, chemical agencies or electricity, greater density. In the
last instance, the impregnating sUbstances attain an important proportion.
Oriented strand board, which is made from layers of thin strands cif wood which
are at least twice as long as they are wide. These strands are mixed with binders
(usually waterproof) such as isocyanate orphenolic resins, interleaved together and
laid down in layers forming a thick mat in which the strands are generally oriented
lengthwise in the surface layers and generally cross oriented or laid down randomly
in the inner layers in order to give the board improved elasto mechanical
properties. The mat is subjected to heat and pressure producing a solid, uniform,
rigid structural board. Wafer board, which is made from thln wafers wood which
9f
are less than twice as long as they are wide. These wafers are mixed with birideis
(usually waterproof) such as isocyanate or phenolic resins, interleaved together and
laid down randomly, thus forming a thick mat. The mat is subjected to heat and
pressure producing a solid, uniform, structural board having high strength and

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water resistance. with regards to other ligneous
material whether or not
agglomerated with resins or other organic
binding substance (other than specified
boards), the Hon'ble Tribunar, Bangarore in
M/s, pq.d.mauqthg panet Boards us
The commissioner of centrar Excise[2ooz (rg2)
ELT g6 Tri Banglheld that:
7. we haue heard both sides and considered
the submissions and ftnd._
(a)HSN Note relating to particle boards prescribed ,,it
Le proaucea
from other ligneous materials such as Tragments obtained.^og-o-t"J
Bamboo, cerear strana or from Bagasse,
from flax or i.ip shieues.,, we therefore cannot
concur with the submission that board"
out oy ii""-Hu"k would
be excluded from the puruiew of particle ^oriyo"tured
ioard.s fouowing under chapter
Heading 44'06 as HSr/ Note d"id, not limit
the items, bit onlg giues the
example' Tanff Entrg 44.06 is uery clear,
it read.s oi ,porti",t"'noord. ord.
similar board of wood. or other ligneous materials
tuhether
with resins or other organic bind.ing substances.,, or not agglomerated.
The u.tord. ,Iignin, as
explained in 'NEW %EBSTERS, Dictioiarg
of English, indicates th.e same to
mean a (sic) Botanical oigin, it couers an
oiganic substance associated. with
cellurose in the ceil wails especiailg of
the xgtlm on wood of mang prants. This
meaning of 'rignin' wourd. indicate that the
uord. ,rigneoui, u".i i, the Entry
44'06, would couer a particle board, made
up ba using ang part of prant
material uith Resin' 'Rice Husk' is part o7
nice ebnt beiig oti", couer of the
Rice grain, which is used. in this
otorg with Resin/ Glue, Bamboo, Cereal
straw' flax or hemp shieues and""oi.,
the resultant 'board"s' tuould. be thus couered.
bg heading44.06.
Hence' based on the ratio of the Honble
GESTAT, Bangalore, the rice husk
board of
the applicant would very well fall under the
said category and would come under
the erstwhile classification under Heading 44.06,
which is presently classified
under heading 44'10' The applicant has further
stated that, as per the general
explanation note to HSN under chapter 44,
any panel which consists of layers of
wood and plastic can be classified under
the said chapter, provided if the later
has
a subsidiary insulation function in the making
of the final product. Thus, the sole
purpose of using PVC is to bind the rice
husk powder, fillers and other processing
additives in order to get the desired output
i.e the rice husk board. pVC has a very
minimal dominance in the making of the rice
husk board. It is evident from
manufacturing process that the major proportion
of raw material used is rice husk
as natural fibre along with calcium carbonate.
The other materials such as recycled
material & processing addictive and PVC resin
are comparatively less in proportion
as compared to the natural fibre. The PVC
resin, acts as a binding agent of all the
other raw materials used. Thus, the major proportion
of raw material used for
manufacturing the rice husk board is the
natural fibre i.e., the powdered rice husk.

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Hence, the rice husk board will fall under Heading 44.IO as per the above
explanation of the HSN Note.

2.4 The applicant has submitted that, based on the HSN explanatory notes and
the ratio of the Hon'ble Tribunal (Bangalore), the Rice Husk Board manufactured
by them would appropriately falls under Chapter 44 and Heading 44.70 of the GST
Tariff. As per Sl.No 92 of the Notification Ol/2017- (CT Rate) dated 28.06'2017
Schedule 2, specified goods falling under Chapter 44 or any other Chapter are
subject to 60/o CGST & 60/o SGST and the Rice Husk Board is specifically mentioned
under the said Sl.No. Moreovei, the applicant also wish to submit that as long as
the product satisfies the description uRice Husk Boardn irrespective of its
classification GST at the rate of 72o/o would apply as per the above notification.

3.1 The applicant was extended an opportunity to be heard in person and was
heard on 26.09.2O19. Shri. G. Natarajan, Advocate and Shri. Varun Bengani,
Director of the applicant company appeared for the hearing. They submitted copies
of HSN clarification and explanatory notes quoting General Note stating that they
should be classified under chapter 44. They stated that the product uses rice
husk which is made into fine powder and mixed with resin and extruded into
moulds. This product is a Rice Husk Board, a new product. They submitted copies
of CESTAT judgment which classilied under 4406 which is now 44IO. The product
does not have a layer of insulation but the PVC resin is mixed into it. They
undertook to submit copies of sale invoices and invoices for all inputs. They reuse
any waste generated back into the compound before putting it into a mould. The
final rate will be 72oh as per SL. No. 92 of Schedule II under 4470.

3.2 The Jurisdiction State Officer appeared for hearing and reiterated the
written submissions. In the written submissions, it is stated that no case is
pending on the Rate of Tax issue and that the Rate of Tax on the Rice Husk Board
manufactured by the applicant is leviable @12% GST, since it comprises Natural
Fibre i.e., Rice Husk Powder, Calcium Carbonate, recycling waste and PVC resin
which is bonding agent remain classified as Woods and Articles of Wood.

3.3 As undertook during the personal Hearing the Applicant submitted

copies of purchase invoice related to Purchase of 'Rice Husk Powder', PVC

suspension resin, PE Wax ( HSN 34O49O2O), Stearic Acid Triffa 921(HSN 3823)),

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cellcom and wPC-3000E (HSN 380gg3go), NC Blowing Agent AKD-7800(HSN

38099390), Acrylic processing Aid Type HL 175S(HSN 39069090), Acrylic
Processing Aid Type HL-9O(HSN 39069090) and sale invoices
with the description
'Indowud NFC Board' (HSN 447ogogo) on 10. 7o.2org. The sample of Indowud
-A
Zero wood NFC board produced during the hearing shows that
it is similar to a
board made of wood.

3.4 It is seen in the product brochure that the product is .Ind.owud

NFC
Boards' which is a 'Natural Fibre composite' made of natural
fibres, mineral and
polymer compounds, other filers and additives. It is claimed
to be a better and eco
friendly alternative to wood, plywood, and MDF/HDF. It is flame
resistant, termite
proof, waterproof. Its application include as a substitute to
wood based boards in
wall paneling, outdoor furniture, Garden, Pool and Seaside furniture,
Kitchen and
Dining areas, cNC routing, Thermoforming, Cabinets and wardrobes, partitions,
Fencing, signage. The brochure further states that the
natural fibres are procured
from polymers and natural fibres are mixed with minerals,
coupling agent, heat
stabilizers and necessary additives under monitored temperature
and pressure
forms a homogenous matrix which is responsible for the bonding
between polymers
and fibres' The compound is then extruded through various
calibration pads. It
has density of 650-850 kglcBM (0.65-0.85 g/cm3) with
a 5%o variation.

4' we have considered the application filed by the applicant and

various
submissions made by them as well as by the department.
The short issue involved
in this case is determination of the classification for the product
manufactured
and supplied by the applicant as per the customs Tariff
and the applicable rate of
GST payable as per Notification No. or/2or7-cr(Rate)
dated 28.06.2077 as
amended. As per section 9T (2) of the CGST Act, 2or7, advance
ruling can be
sought in the matter of classification of any goods and consequently
the rate of GST
payable. Hence we proceed to examine the issue in
detail.

5'1 In terms of explanation (iii) and (iv) to Notification No. r/2orz

- central
Tax (Rate) dt. 28-06-20rz, tariff heading, sub-heading,
heading and chapter shall
mean respectively a tariff item, sub-heading, heading and
chapter as specified in
the First schedule to the customs Tariff Act, 1975 and the rules
for the
interpretation of the First schedule to the customs Tariff Act,
1g75, including the
section and chapter Notes and the General Explanatory Notes
of the First
schedule shall be applied for the interpretation and classification
of goods.

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5.2 The applicant has submitted that the product under consideration is a
Natural Fibre composite (NFC) Board made of Natural Fibre, i.e, Rice Husk
Powder which constitutes 30% by weight, Calcium Carbonate (Lime Powder) 147o
by weight, Recycling waste r9o/o by weight, Pvc 26vo by weight, Processing aids
such as thermos-coupling agents, etc 8o/o by wt and lubricant 4%o by weight. They
claim that the product is classifiable under CTH 4410. The relevant CTH and the
related Chapter/Section notes along with the Explanatory Notes of HSN are
examined as under:

CTH :4410

{{n{} tlA I{-r'r (: t" t"l lltlA RIl, {}tl I tit \'t' t: I) sI' l{."a N t}
().-t Id I! t ( )S lI) A N Il li Ii\.! I 1...,\ }t Il (|..\ ttl)
&
{ Ii-(} It ln X'4' \l } I- *1, 1111 FI:: L t}t},.t llt l} ) {}l;
\\'{}(}l} (}l{ ()'t'l I F:It I-|(iJritrl{}l i5i
aL{I-!: ll'Ijt'I.5, MI f:'t-l rilf:It {}R f.t{):t"
A{;(i l-{}}.1 [iIt,.\ l'[::l] \U I "f'I I RI:]!.iI l{ S {}tt
(}'l'lIUI{ ()tt{;.\N I{ : L}il!{nlF,i(,;
$l-rr5-I-.4,\('lis
t.')f trt:tttd.
",t-t ifi I I {ut"tit:ltt fst*tttd.
,.r'rt{} I I 1r} If)arn pirr tlclc lrnard.r
;{ill(l I I l{} Ins u l;rti{}rr htx: rd anr! lxrrrih$:rrrl
..$.:lltl 1l -}tt Venec.rr.d pnrr.ic I c ll$ll rrl - ntrt l:;rv i rr g <j*c:*ril i r e
L

\rf lteajr$ *u ;: nt, fircr:

-s,ll{} ll i}t} ( )lfrcn:
.{ril{] t1 ( lt" t t.: t t ! t.tl .r.rr'*ur'/ {tr N} ftl I ( },\ ll I :
"l..lli'i lr l{1 I irrrvr:rkrri rlr nrlt lirr{lrer lr.$rketl ttr;ln *;ttrdecj
;l.1Ifl Ir tjJ{} {}t[tcI
",'-l | {} l. * (t{} {l}t}rcr
-t4 ! {} ul} ( }fJtn'r-
"$'l | {', rJil ! {} ltl:un parlicle hrrrrd
.*-{ I t} 9t} ft} lnslrllrti{}tt lrurd alld }rartl ho*rti
"14 I {} t}if .3{} Vr:necr ud 5xrr ilclc lxt*rti, nrrl lr;rr.irr l:l (lcgrarrllIr r c
rr:rlsers *n ;lnv titcr:
$,t t r) {l(,r .{t} ( -l l'(.lr r r
*4 | {} rr{'t 5{1 (lN-jrrrc l-r[:r*
'.r..f t {} 9l.t -J{i ( _r llt r!

The Explanatory Notes of HSN states as follows:

{4"t {t - ['*rt]tls ]xtrrd. (t!-icrraed slr-urrd t)otrd t{}St}J nnd siu|l:rr L}s;rt.d {lirr r"r.rrrllrle.
rraft'r.-blard.f ll'rtood.rrr.llrer ligrrcour rrr:rtEl'lair. .rtrctlri.l: ir,: rri,ig13t,]nr,i.".,irJ.tirrt
rcrtlt$ Irt' .rflter 0r-ll:lftac lrirrrllrrg ru brtlrrt.cr.
( )l rvr';:d :
.:{.llll. I I - - I}rrr'1iul-r: Lrrgni
-'l-l i {i.. I l. - - (}rir:r:l*e rXrir rril brnrrl t'{..}g}lJ
4-l!{1 t1.^} -, t-}rl:!:rl
. .,+t{.}.lri'r'a} - {i}ilrf,r
I'ili-{Iul( bt*rel ir tl Ilir1, !rr.c,!r"i:I r:r:rrrr.lii,i{urr:n.l rl- r,irt.,r:rtr l(:r;i!i1lrr.. *rirtrihs *nc ihicl:::ts$di ra.
lrhs\rlr!"'\,r s\lr{lrt{1rl f! i\ {r-rrtll} rr!;r(lu lir,-r !\('c:.i,. lrlt:,,r
rltfr'lt:rr:rr'$l rcih!(ti{'l: r,i rrrrrtrr$v..r,,,.1 r.: rv.r,,.l r'(,\ir.ilut. lt,rin,,rlri, ir:rrti..lci,'tirir,t.i-'lir,,i,i.
r:c L1r\,\lr-{url Ilrr,rr: rrlJrur
ligr'c,,ir" r{1.:r"r:r'rirli r,tt:li rrr ti';r1:rrrr:r..r.s,,lrl;rrr,uil ti*'rrr l:1;..*:.u.1",;irti;,;,,. -.:..lif'.iiiiri,f',,r'iilrr",ri,rrr.
rtrl](:trlFslli1"g$P;}iJ1{'lcbrurlr:}|-itlittlr|;t|}!lrl:gtr'rtlrculir}ij[r1'1;1g'111*'.f..ni','.t'tJit'*i'ii'ii.1i1'n*''
rislrillnf ir 1l;'Jtrn.tJ{:1(if rr !r.\r jr. ial t..l} $rri1!,;;rll:itli:t:s ln{.:t r:}*i,*ij t: rt , c,f lnc,ivi-*,Lt -fi{iri fi**f .

'I ltt:
,r'lrr1r". ;>:trtir:lr:' .rr rr:l:r':. lr'ir{tri('-r!\ (,'rr\rr-rlrrrL: tl,!(" ;}.rnt(.lc lr,-:rr-rl< ..1 t! is lrutr*l:rrs "rrr
:::.{,:f]_i.'-:-..1'i :j,'::i!!.'.rI thi'(!l?:\'. .,r- tlru lrtrlrr.r ..rrrlr rrr* rr:rl-c,l cvu-. I'li,rs.r|L"r.- tir ".iii*-.i,".".
ilil;'l::::.iT:]i-"i:.i'i']ji:,...i:;|.,'.i:i|.,|:i,:':.,1i,.l'iii1,i:'J:l::i.

5.3 From the above, it is evident that those boards are manufactured by
mechanical reduction of wood residues or other ligneous materials by adding
Page 8 of 12
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organic binder, usually a thermo setting resin,
which generally do not exceed 15zo
of the weight of the board is classified under
this Heading. In the instant case,
natural fibre is first extracted from rice husk and
then mixed with lime powder
(calcium carbonate), processing additives
such as lubricants, foaming agents, foam
regulators, heat stabilizers, etc. pVC resin
is used as a binding agent. If the rice
husk was directly added with binders etc without
extracting the fibres, the product
would be a particle board, which is not the
case here.

5'4 we examine the other possible classification for

the produ ct. crH 447r
*1'*
' 'i iifit!1.Tfl.*ff:*.:",.?:.lTi-?:',iilb1ir;,;,,fii,*
li{}'r- t!{t l; D rnt} al,r -r-[ t lt r,:-.; rxf
{}r{t;*r,tri I{ - $it It}s-I-_"t l.ic :n-o;'
-' "' - { }Fr. {} .1. t r a: I{
*,.1-fir/rrrrru (Jsrr-{tf"r-"fi$r.c f:rxrr"rJ
;s-,'{ll [1$(} ( 1f- a rl.rickrj{:ss l:r}t f.,ld.f-},{.J__
rr-lll I;i{i{} r:ncr:edl,ng 5rr:rn
cxce*dinsi .5rir:r t rrr, rr"rn r-xs{:r:{.tirlg,
{$"lll ;ij;;,*rt,"***ss
l.l.ilt} t )t- n thtrkrrc:s .l.rc.{jedilf, g L*:t1lr)
- (lrlrcr.
-,*iS I I {}r { .!{ u c?*'tt,s i tt . c1.r.s.d,i&ir"e $-
{3 .q,/.1, d.*f , j
.,1,j{itr r:ri1e.._y'rd{tti*.,tll-t^rrori.,q.*"J
"rlj^.rn]ry".."o (-.t}1.*.rd..if_.

-&,1i [ !.]:r I I I Iar.r-clhrrirrtl

it4t I !r:r l{i { }rh*r- I
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f,r.A'I*.rtt t:tt, ' .. -{ .trtl
.{".{ttq-f tl r\-(,t ritrr{ .4dr/r,{,dji'/[, u,#l.A<tc/ r:r- *
furr&l;rl i{1n laft*rd trr'-,tilrt't: r:.r.r l "{ir?"rJj
,4.1.1! .,):l t{.} (:!tl'r d f t
l|)rhtr. l
**-tlI "ifI Insul:it i{}rl l&}ai.r(l
;l'1 I ! \)-:i:r-dl { }thr:r }
.1,'t J I 1).,1
{.}/ * dt'rt.t-ttl- jrilt
.".r.{l[*.,ftr .r.i.,r,^,. i,.,;, r. _.:ir,:c:y.-r,a,1l;r!<, a) {. .,-.. .-._,
li _l*:J;",i;L i,il,:l; iil'
Ilrsr*I;rt ir:*rr [xr;lrti ;..", o..r.
"'l.4 lI $rtr !q ",,
( ltlrrI
{')f h .. r-..
*3",1 I! -r3.1 1t
Irxsilliitinrt tlr)anr(l
"t"4ttt,l.f.]a { }t'^{"{:rir t
".t,,,lt I q.{ tr"} t )1".iute titrlc I
,t..;l I Lr.l !9
{.:th c r I

HSN Explanatory Notes to CTH 4411

states :

44'rr - ligneous materials, wherher or not bonded

x.1t:f"?"r'fdi#:39.?il%t*:r wirh resins
- Medium densiry fibreboard (MDF) :

4411.12 - - Of athickness not exceeding 5 mm

44ll .13 - - Of a thickness exceeding 5 mm but not
exceeding 9 mm
4411.14 - - Ofa thickness exceeding 9 mm
- Other:
- Of a densify exceeding 0.g g/cm3
4411.92 -
4411.93 - - Of a density exceeding O.5 g/cm3but not exceeding 0.g g/cm3
4411 .94 - - Of a density not exceeding
O.5 g/cm3

Page 9 of 12
 www.taxguru.in
Fibreboard is most often manufactured from wood chips which have been mechanically
defibred (defibrated)or steam ."pioa"a-oi"notii
9P3jl^.1:,e,.from 6agasse.or bumdool.-fh."fib;;i;"ii;;
m.rcroscoprc examination. Thev are boirded tooettr_er.in
"ilr.lili"iii;;A ifrr'o-cettulosic material
recosnisabre under
adheslve properties. eenerally- deriving, fi'om fierr ft; ";a;;;;lfl;
bo;a bt-i;t.#g ,ri"irtvift;r",j;;
organic bonding subst6nces rriay-be lrgnrn c,ontent. Additionat resrns or other
to agglome^rar-e the fi&e;:1fi;6;ting or orher agents
mav also be added during or ifter"s"?manufac?fi;;f ih;;:;;;;^6;r"E';";'exrra properry. e.s..
rmpermeabirirv ro warer oiresi.ta,rce io ioi. i';;; ;tt;;k, ?;;;. ti.t;;;'j
may consist of a single srreet oiofi&;;i;h;;;;1."d;JiG;ti;.:'^! er'vsu of
\ flame. Fibr:eboa;d

of this heading can be distinguished according to their production

Jht":S:"*f,f";f"X?;et"".*
(A) Fibreboard obtained by the .,dry production process,,
This group includes, in p-articular, med.ium density fibreb-o,ard
rn a process in which (MDF), which is manufactured
resiirs are addedi<l-rhiiiiea'wooa fibres in order
to assrst the bondine "d .r]l93,ll*t-osetting
1 g/gmr' In the unvioiked
"rn.-d!;;d;;Hlil"#["*r'r.o_
p..rr. o.45 sJcmr to
state itrai two smooth ggrfgceg. It cdLn belsed
"ro,""_r.r-.,.r,14.
vw ure( in many ilifferent
applrcatrons such as fumiture, interior deaor;ii;;;ji, j. --'Ir
u"iUi,
#""flH*"{iy,l3;:UffiX"?:3.$?tig.lqi".eding 0.8 g/cmr is sometimes arso rererred to by

(B) Fibreboard obtained by the ,,wet producfion

process,,
This group includes the following fypes of
fibreboard :
(1) rrardboard, which is manufactured in production process in which the wood fibres
rn suspension in water a.re compressea-in 1_yg!
ttre form of a^mat;;der high temperafure
high pressure on u mttuiii. and
smooth and one rough.surfac""*r1.'"i"irre,-unworked-state this type ot'fibreboard has one
*iit
two smooth surfaceiobtained bv .p""iui
u -Lrh-pafte1n However, ir can sometlmes
also have
Il t.;e;;l y h ^'' " a ."'t ry ;];.;'d or ;,ffi',fl?3:ff li ?J ffiff ? "j lfrruit and vegetabre:;
iX:'Xil m::
industrie!, ror doorFkifi;";
'i'"J i;;;;;i#i";;".i.p.ciarry
iX?,:S;i3t've
(2) Mediumboa-rd, which is manufactured in a.way
similar to-the one for hardboard but at a
bltff
"flq'ry;.""1,1^??'::illi"13i,""*fi ii,?rffi :fl Tf #;"g,;ti,lli,+:#ni**ir,:
(3) softboard' This fibreboard is not comprgssed as the other types ot'fibreboard
the wet production process- rt generaii'v-has obtained I
a deniiry-;?-O i'iil"-, or less. These boart
f,:?.tTi"TiJt'Lff":?fru1,"5n1,t'in|:tl''il'il"lid{# 's';;"i;i til;' ;i l;#ils
The products of this hT^9jnF^I",-uin classifred.herein
ronn the shapes orovideg for in respect of the whether or not they have been worked to
perforated, cut oiformed t gooas o?'h;#i{"+l+.0s, curved, comreated.
have been worked at the surfac", ;r,ipir"5tirJ."tLl.rq-uor. oii"tGig""rar and whether or noirhe-,
pl3.tjcs,.nbt
ttt"
"ae."* tdi;In ;;;t"f;;'co,r".ed 1e.g., wittr textiil
l1?:^.r do
paint, p-?per
9r i";i4i Si rirb-,n o to any other op
trreieliy give suchi pioaiit, the esseniiai ;i;.;d;'iXT;,q,:iJlt:f
l#i?:'ll' :l;::
From the above, it is seen that Fibreboard
manufactured by bonding fibres
extracted from wood chips or other ringo-ce'ulose
material. They are bonded
together by adding thermosetting resins and
find apprication such as furniture,
interior decoration and in building are classified
under this heading. The product
in hand is a Natural Fibre composite Board' with
density of ranging from 0.6s -
0.8glCm3(as given in the brochure) and finds
application in fumiture, interior
decoration, building, etc. In this case as per
the manufacturing process, fibres are
extracted from the rice husk and then mixed
with lime powder (calcium carbonate),
processing additives such as lubricants,
foaming agents, foam regulators, heat

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 www.taxguru.in

stabilizers, etc. pVC resin is used. as a binding agent.

Hence, the product is a
Fibreboard and is more aptly classifiable under CTH
441193 as ,others,as it is not
a Medium Density Fibreboard. Further classification
will depend on the individual
properties of the product.

6' Having decided that the NFC Board manufactured

by the applicant with
main content as Rice husk, will more appropriately be
classified under crH
441793, the applicable rate of GST is taken up for
consideration. The rate of CGST
is notified vide Notification No. 01/2017-c.T.(Rate) dated
28.06.2017 as amended
in respect of goods and that of SGST is notified vide Notification No.
rr(2)/crR/s32(d-4)/2017 vide c.o. (Ms) No. 62 dated
29.06.2orz as amended. As
per sl'No 92 of schedule-Il of the Notifications,
specifies the following goods falling
under Chapter 44 ot any other Chapter are subject
to 6%o CGST. The said entrv is
as follows:
92. l44 or any
Chapter I a. Cement Bonded particle Board;
b. Jute Particle Board;
c. Rice Husk Board:
d. Glass-fibre Reinforced Gypsum Board (GRG)
e. Sisal-fibre Boards;
f. Bagasse Board; and
g. Cotton Stalk particle Board
h. Particle /fibre board manufactured from agricultural
crop residues

From the above, it may be observed that Rice

Husk Board or fibre board
manufactured from agricultural crop residues,
irrespective of the chapter under
which the same are classified., are subjected
to GGST @ 6%and 6 % SGST.

7. In view of the above discussions, we Rule

as under:

RULING

"Indowud Natural Fibre composite (NFC)Board,

manufactured by the applicant
merits classification under chapter 44rrg3
of the customs Tariff and attrac ts 6 oh
CGST as per s'No' 92 of schedule II under
Notificatio n r/2orr-central Tax (Rate)

Page 11 of 12
 www.taxguru.in

Dt.28.06.2017 and 6 % SGST und.er Notification No. II(2)/CTR

2(d-4ll2or7
vide G.O. (Ms) No. 62 d,ated29.06.2017 as amended. \q
/o
f .1..-t
)-u
\* "

ilr, i"I
!; ' r-i t;*i'L z''* i,,{r
I
V.S,
Ms. Manasa Gangotri 'i^,:,11,
Member, CGST Member, TNGST
-1'l
( r)lT
. ..-i | I Ii-{IC) YIf:ofR --) I
t

To , ",nv,4ttY\jC;EFRL
IulL'N.lG I

M/S. PAPAKA HERBS & SPICES PRIVATE Ltd. T" 8l

,s pee
,B{u&pt ?d
st/
Lr hFo"
I
I
205, City Center Road, 2'd Floor, I
I
I
232 Ptrasawalkam High Road,
i
l(
I
;OODS AT rNtD DSESERVICE
Clrentnaa i-{-66. Tarnilrrart
xl
Chennai 600 010. I Ta t tr I

Copy submitted to :-

1. The Principal chief commissioner of CGST & Central Excise,

No.26/1, Uthamar Mahatma Gandhi Road, Nungambakkam,
Chennai - 600 034.

2. T;6eAdditional Chief Secretary / Commissioner of Commercial Taxes,

2"d Floor, Ezhilagam, Chepauk, Chennai - 600 005'

Copy to:

3. The Commissioner of GST &C.Ex., North commissionerate.

26/I, Mahatma Gandhi road, Nungambakkam, chennai - 600 034.
4. The Assistant Commissioner (ST)'
Ayanavaram Assessment Circle
F50, 1 st Main Road, ICICI Wealth Management Building,
Annanagar, Chinthamani- 600 102.

5. Master File / spare - 1.

Page 12 of 12