Authority for Advance Ruling — Taxability on Steel Mugs with plastic outer body – The applicant are manufacturers and exporters of various products consisting of Water Bottles, Lunch Boxes, Pencil box, Milk Mugs, Tea/Coffee Mugs, Milk/Tea/Coffee Mugs with Steel Bidding, Airtight & Leak proof Plastic Food Storage container, Airtight & Leak-proof Steel Food Storage Container, Lunch Boxes with Elegant Pouches, super Lock & Seal Containers, Super Steel Lock container. They also manufacture specially designed Steel mug with plastic outer body, thus utilising the beneficial properties of both substances steel & plastic. The applicant sought an advance ruling as to (i) whether Steel Mugs with a plastic outer body supplied by the applicant would be classified under Sl. No 184 of Schedule II of Notification No 1/2017 of CT (Rate) dated 28th June, 2017 (as amended).
Held that:- The Hon’ble Authority for Advance Ruling held the that the Steel Mugs with plastic body are advertised and sold as steel mugs, and it is the steel that gives the essential characteristic to the subject product. Hence it would be appropriate to consider the element of steel as the major element which is used in such conditions. Further in view of Rule 3 (b) of the Rules of General Interpretation to classify goods, the goods fall under Chapter Heading 7323, and covered under Sr. No. 184 of Schedule II of Notification 1/2017 CT (Rate) dated 28th June, 2017.—Rk Industries, In Re…. [2019] 12 TAXLOK.COM 092 (AAR-Maharashtra)