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TMI Blog2020 (9) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... ers are completely distinct in nature and use to these fertilisers. In view of these facts, we come to the conclusion that biofertilisers are not covered under the Sub-heading 3101 of the First Schedule to the Customs Tariff Act, 1975. Since biofertilizers are not covered under Sub-heading 3101, whether the same is covered under sub-heading 3002 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975) ? - HELD THAT:- On going through the column (3) of sub-heading 3002, the entire portion of the description of goods except cultures of micro-organisms (excluding yeasts) pertains to the medical field. On going through the said Sub-heading 3002, it is seen that cultures of micro-organisms (excluding yeasts) appears at Tariff entry No.30029030 of the First Schedule of the Customs Tariff Act, 1975 (51 of 1975). Further as per Vikaspedia, bio fertilizers are produced by culturing of microorganisms and that such cultured micro organisms packed in some carrier material for easy application in the field are called bio fertilisers. Thus, it can be seen that bio-fertilizers are produced by culturing of micro-organisms which is covered by the entry cultures of micro-organi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r chemically treated; fertilisers produced by the mixing or chemical treatment of animal or vegetable products : 3101 00 10 --- Guano ---- Other : 3101 00 91 ---- Animal dung 3101 00 92 ---- Animal excreta 3101 00 99 ---- Other The applicant submits that the product under discussion is not a chemical product but is comprised of live spores and propagules of endomycorrhizal fung; that inert materials like humic acid etc. are manures in general sense and therefore merit classification under Chapter 3101. The applicant has described the General Notes applicable to HSN 31 as below: this chapter covers most products in general use as natural or artificial fertilisers. On the other hand, the Chapter does not cover products which improve rather than fertilise the soil such as : (a) Lime (heading 25.22) (b) Marl and leaf mould (whether or not naturally containing small quantities of the fertilising elements like nitrogen, phosphorus or potassium) (heading 25.30). (c) Peat (heading 27.03). This Chapter also excludes micronutrient preparations which are applied to seeds, to foliage or to soil to assist in seed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The applicant has submitted that the Hon ble Supreme Court has upheld the decision of CESTAT in the case of Northern Minerals ltd. v/s Commissioner reported in 2001 (131) ELT.355(Tri.) in Civil Appeal Nos.4970-72 of 2002 filed by Commissioner of Central Excise against CEGAT; that the Appellate Tribunal in this case had held that Dhanzyme is a biofertiliser being a plant growth promoter only, thus classifiable under Sub-heading 3101.00 of Central Excise Tariff Act, 1985 and chargeable to NIL rate of duty and not classifiable under sub-heading 3808.20 ibid as plant growth regulator. 5. The applicant have put forward the following Question on which Advance Ruling is required: Whether the bio agricultural products i.e. RhizoMyx and Rhizomyco are classifiable under : Chapter 3101- All goods i.e. animal or vegetable fertilisers or organic fertilisers put up in unit containers and bearing a brand name-Entry No.182 of Schedule-I of rate of GST on Goods comprising of List of Goods at 2.5% Rate or Chapter 3002-Animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the applicant i.e. Rhyzomyx and Rhyzomyco are biofertilisers as stated by the applicant. For that we are required to find out the definition of biofertilisers: As per dictionary, biofertilisers are defined as a substance which contains living micro-organisms which, when applied to seeds, plant surfaces, or soil, colonize the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant . Vikaspedia defines biofertilisers as under: In nature, there are a number of useful soil micro organisms which can help plants to absorb nutrients. Their utility can be enhanced with human intervention by selecting efficient organisms, culturing them and adding them to soil directly or through seeds. The cultured micro organisms packed in some carrier material for easy application in the field are called bio-fertilisers. Thus the critical input in Biofertilisers is the microorganisms. As per Vikaspedia, benefits of Bio-fertilisers are as under: Bio-fertilisers are living microorganisms of bacterial, fungal and algal origin. Their mode of action differs and can be applied alone or in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promoting substances containing eighteen species of endo and ectomycorrhizae in a soluble/injectable form to provide broad spectrum application for increased nutrient update and enhances root systems. It increases nutrient and water absorption, improves plant disease resistance, greatly extends the root system and improves stress tolerance. The said product is applied on Direct sown crops, transplanted crops and horticultural/tree crops as detailed below: (i) Application on Direct sown crops(oilseeds, cotton, melons, cucumber etc): First application-seed treatment: 5 to 10 grams per kilogram of seed. Apply dry product to seed followed by light wetting, proper mixing, and drying before sowing. Second application:drenching spray, soil drenching, fertigation Apply approximately 15 days after sowing or first application. 250 grams per hectare. (ii) Application on Transplanted crops(rice, chilly, capsicum, onion, tomato etc.): First application: seeding dip. 10 grams per litre of water Dip the seeding in solution for 5 minutes before transplanting. Second application:drenching spray, soil drenchin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and comparing the same to the definitions and benefits of biofertilisers described in para 9 above, it can be seen that the above products manufactured and supplied by the applicant are indeed biofertilisers. 11. In order to determine the classification and tax liability on the supply of the products RhizoMyx and Rhizomyco by the applicant and to decide as to whether these products are correctly classifiable under Sub-heading no.3101 or 3002 as requested by the applicant, we will be required to refer to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 containing the sub-headings as well as the rates of Central Tax GST applicable to various goods which are covered under 6 schedules as under: (i) 2.5 per cent. in respect of goods specified in Schedule I, (ii) 6 per cent. in respect of goods specified in Schedule II, (iii) 9 per cent. in respect of goods specified in Schedule III, (iv) 14 per cent. in respect of goods specified in Schedule IV, (v) 1.5 per cent. in respect of goods specified in Schedule V, and (vi) 0.125 per cent. in respect of goods specified in Schedule VI Further, Explanation (iii) and (iv) of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs use the word manure to mean a fertilizer made from animal waste. When you spread manure on your vegetable garden, you're feeding the soil and plants with nutrients that (ii) encourage growth. The manure itself might be, for example, a combination of cow dung and straw, or slightly decomposed chicken waste. (iii) Organic fertilizers are fertilizers derived from animal matter, animal excreta (manure), human excreta and vegetable matter (e.g. compost and crop residues). Naturally occurring organic fertilizers include animal wastes from meat processing, peat, manure, slurry, and guano. Since the definition of vegetable fertilisers is not available anywhere, hence it would have to be construed in generic terms. In generic terms, vegetable fertilisers would be the fertilizers derived from vegetable matter like compost and crop residues. As per the submission of the applicant, their products i.e. Rhyzomyx and Rhyzomico are biofertilisers. The definition of biofertilisers is as under: Biofertiliser: A biofertiliser is a substance which contains living micro-organisms which, when applied to seeds, plant surfaces, or soil, colonize the rhizosphere or the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACCINES,TOXINS, CULTURES OFMICRO-ORGANISMS (EXCLUDINGYEASTS) AND SIMILAR PRODUCTS ; 3002 10 - Antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes: --- Antisera; 3002 10 11 ---- For diptheria 3002 10 12 ---- For tetanus 3002 10 13 ---- For rabies 3002 10 14 ---- For snake venom 3002 10 19 ---- Other 3002 10 20 --- Hemoglobin blood globulins and serum globulins --- Other : 3002 10 91 ---- Of human origin 3002 10 99 ---- Other 3002 20 - Vaccines for human medicine : --- Single vaccines : 3002 20 11 ---- For cholera and typhoid. 3002 20 12 ---- For hepatitis. 3002 20 13 ---- For tetanus. 3002 20 14 ---- For polio. 3002 20 15 ---- For tuberculosis. 3002 20 16 ---- For rabies. 3002 20 17 ---- For Japanese encephalitis. 3002 20 18 ---- For whopping cough (pertusis). 3002 20 19 ---- Other --- Mixed vaccines : 3002 20 21 ---- For diphtheria, pertusis and tetanus (DPT). 3002 20 22 ---- For diphtheria and tetanus (DT). 3002 20 23 ---- For measles, mum ..... 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