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2019 (10) TMI 157 - AAR - GSTClassification of goods - rate of GST - AUTUS - SJ-NINJA - SJ-ERASER - OPRAX - TELNAR - VK s NEMO - STRESSOUT - SHYAM SAMRUDDHI - goods are Otganic Fertilizers or not. Product AUTUS - HELD THAT - Autus satisfy all the ingredients of plant growth regulators (PGR) and therefore classifiable under Tariff Heading 3808 with applicable GST @ 18%. Product SHYAM SAMRIDDHI - HELD THAT - The plant nutrient such as N, P, K are derived from organic source. The product is also certified by the Accredited Certified Agency as Organic Products. The product does not contain any other growth regulator as suchh the product is Organic fertilizer classifiable under HSN 3105 and liable to GST @ 5% as per Sr. No. 182D of Schedule-I of N/N. 1/2017-CT (Rate) dated 28.06.2017. PRODUCT SJ-NINJA - HELD THAT - From the mode of action and the salient feature of the products, it is found that the product satisfy all the attributes of an insecticide and hence the produce is an insecticides covered by HSN 3808 liable to GST @ 18%. Product SJ-ERASER - HELD THAT - From the use of product, it can be concluded that the product is an organic insecticide falls under HSN code 3808. Further, the presence of nutrient in small quantity will not alter the essential character of the product as an insecticide liable to GST @ 18%. Product QPRAX - HELD THAT - The product is an Organic Fungicide falling under HSN 3808 liable to GST @ 18%. Product TELNAR - HELD THAT - The product is advertised by the appellant as broad spectrum organic bactericide. There is no doubt that the product is Organic Bactericide-Pesticide covered under Tariff Heading 3808 liable to GST @ 18%. Product VK's NEMO - HELD THAT - From the literature and the use of product, it can be said that the product is nematocides covered under Tariff Heading 3808 liable to GST @ 18%. Product STRESSOUT - HELD THAT - Having regard to publicity literate, its content, the mode of action, the product falls under HSN Code 3808 @ 18%. For classification, reliance placed in the case of KULKARNI BLACK AND DECKER LTD. VERSUS UNION OF INDIA 1991 (7) TMI 95 - HIGH COURT OF JUDICATURE AT BOMBAY where it was held that The classification cannot be based only upon what is stated in the pamphlets but the contents of the pamphlets are certainly one of the relevant circumstance which can be taken into consideration while determining classification. Thus, Products namely AUTUS, SJ-NINJA, SJ-ERASER, OPRAX, TELNAR, VK s NEMO AND STRESSOUT are classifiable under HSN Code-3808 and liable to GST (SGST CGST 9% as per Notification-1 of 2017-CT (Rate) dated 28.06.2017 each respectively. The product SHYAM SAMRUDDHI is an organic fertilizer classifiable under HSN-3105 and liable to GST @5% as per Sr. No.182D of Schedule-I of Notification-1 of 2017-CT (Rate) dated 28.06.2017.
Issues Involved:
1. Classification of goods manufactured by the applicant. 2. GST rate applicability on the goods manufactured by the applicant. Issue-Wise Detailed Analysis: 1. Classification of Goods: The applicant, M/s. Alligo Agrovet Pvt. Ltd., sought an advance ruling on the classification of their manufactured goods, which they claimed to be organic fertilizers. The products in question included AUTUS, SHYAM SAMRUDDHI, SJ-NINJA, SJ-ERASER, QPRAX, TELNAR, VK's NEMO, and STRESSOUT. - AUTUS: The product is an organic manure liquid enhancing nitrogen uptake and photosynthesis. It contains Potash and Copper. Despite being certified as an organic product, it is classified as a plant growth regulator (PGR) under HSN 3808, as it influences the TCA cycle (Krebs cycle), a characteristic of PGRs. - SHYAM SAMRUDDHI: This product is a combination of organic N, P, K, S, and amino fertilizers, acting as a soil conditioner. It is classified as an organic fertilizer under HSN 3105, as it contains plant nutrients derived from organic sources. - SJ-NINJA: Contains algae extract with organic copper and zinc, and is certified as an organic immunity developer against insects. However, it is classified as an insecticide under HSN 3808 due to its pesticidal properties, such as causing nervous system damage to pests. - SJ-ERASER: This product, a unique micronutrient formulation, acts as a contact and systemic larvicide. It is classified as an organic insecticide under HSN 3808, as it controls various pest larvae. - QPRAX: A liquid micro fertilizer promoting carbohydrate and protein formation, it is classified as an organic fungicide under HSN 3808 due to its broad-spectrum fungicidal properties. - TELNAR: Intended to achieve better yield and certified as an organic product, it is classified as an organic bactericide under HSN 3808 due to its bactericidal effects on various pathogenic bacteria. - VK's NEMO: A micro fertilizer liquid that enhances starch production and root development, it is classified as a nematicide under HSN 3808, given its use in controlling nematodes. - STRESSOUT: An organic plant growth-promoting supplement, it is classified as a plant growth regulator under HSN 3808 due to its role in improving plant metabolism and tolerance to stress. 2. GST Rate Applicability: - AUTUS, SJ-NINJA, SJ-ERASER, QPRAX, TELNAR, VK's NEMO, and STRESSOUT: All these products are classified under HSN Code 3808 and are liable to GST at the rate of 18% (9% CGST and 9% SGST) as per Notification No. 1/2017-CT (Rate) dated 28.06.2017. - SHYAM SAMRUDDHI: This product is classified as an organic fertilizer under HSN 3105 and is liable to GST at the rate of 5% as per Sr. No. 182D of Schedule I of Notification No. 1/2017-CT (Rate) dated 28.06.2017. Conclusion: The Authority for Advance Ruling concluded that the products AUTUS, SJ-NINJA, SJ-ERASER, QPRAX, TELNAR, VK's NEMO, and STRESSOUT are classified under HSN Code 3808 and liable to GST at 18%. The product SHYAM SAMRUDDHI is classified under HSN 3105 and liable to GST at 5%. The classification was based on the products' characteristics, their mode of action, and the definitions of fertilizers, plant growth regulators, and pesticides as discussed in the ruling.
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