Authority for Advance Rulings, Karnataka Ragu Packaging, In re – [2023] (AAR – KARNATAKA)
The applicant was bringing in semi-finished hardwood sticks and spoons that would go through various processing steps before being shipped to consumers in the dairy business to be utilized as ice cream sticks or spoons. To ascertain the categorization of the items and the rate of tax that would apply to them, it submitted an application for an early ruling.
The Authority for Advance Ruling (AAR) noted that the contested items, including the wooden spoons and sticks, would be made of a particular wood called European white Birch that was harvested from a Siberian forest and would therefore qualify as articles of wood. The AAR further stated that Heading No. 4419 would cover kitchen and tableware made of wood, and Heading No. 4419 90 would cover items made of wood other than bamboo.
Explanatory remarks to Heading No. 4419 state that in addition to other items, this heading also includes wooden spoons and crumb-scoops. As a result, it was determined that wooden ice cream spoons and sticks would be eligible for classification under Heading No. 4419 90 90 and would be subject to 12% taxation under Sl. No. 99B of Schedule II to Notification No. 1/2017-Central Tax (Rate), dated 28 June 2017.
