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TMI Blog2022 (12) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... by the WBAAR being that the supply of services for plantation of mangrove seeds and seedlings in coastal areas shall be covered under Serial Number 32 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 having SAC 9994 and shall attract GST @ 18%. - Appeal Case No. 03/WBAAAR/APPEAL/2022 - - - Dated:- 13-12-2022 - MR ASHUTOSH AWASTHI, AND MR KHALID AIZAZ ANWAR, MEMBER Present for the Appellant: Mr. Rip Das, Authorised Representative Present for the Respondent: Mr Biswanath Purkait, Deputy Commissioner of State Tax 1. This Appeal has been filed by Raj Mohan Seshamani (hereinafter referred to as the Appellant ) on 22.09.2022 against Advance Ruling Order No. 06/WBAAR/2022-23 dated 18.08.2022, pronounced by the West Bengal Authority for Advance Ruling (hereinafter referred to as the WBAAR ). 2. The request of condonation of delay in filing of appeal was accepted under the provision of Section 100(2) of the West Bengal Goods and Services Tax Act, 2017/ Central Goods and Services Tax Act, 2017 (hereinafter collectively referred to as the GST Act ). 3. The Appellant is engaged in the business of cultivation, planting and nurturing of mangrove seeds an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial or other similar products or agriculture produce rather the sole object of the services as it has been claimed by the applicant is to enhance biodiversity and re-establish ecosystem function to protect the islands and the populace from erosion. The WBAAR was therefore of the opinion that such supply of services will not get covered under chapter Heading 9986 being support services to agriculture, forestry, fishing, animal husbandry but may be treated as environmental protection services under chapter Heading 9994. The WBAAR mentioned that Sl. No. 32 of the Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and corresponding West Bengal Notification No. 1135 F.T dated 28.06.2017, as amended from time to time, specifies that tax shall be levied @ 18% on Sewage and waste collection, treatment and disposal and other environmental protection services covered under chapter Heading 9994. 8. In view of above, the WBAAR vide Order No. 06/WBAAR/2022-23 dated 18.08.2022 ruled that: Supply of services for plantation of mangrove seeds and seedlings in coastal areas shall be covered under Sl. No. 32 of Notification No. 11/2017- Central Tax (Rate) dated 28/06/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come derived from building or land used for agricultural operation, in certain cases. [Section2 (1A)(c)]. (b) The appellant further submitted that Hon ble Supreme Court of India had elaborately explained what constitute the term agriculture in depth in the case of CIT v. Raja Benoy Kumar Sahas Roy (1957) 32 ITR 466 (SC). It is a landmark case for the understanding of the term agriculture under the Income Tax Act. This judgment makes it clear that the term agriculture is cultra , i.e., cultivation of the agar i.e., field / land. In other words, raising of a product through the use of human skill and labour on land may be classified as agricultural activity. The product should have some utility either for consumption, for trade and commerce. The term Agriculture receives a wider interpretation both with regard to its operations as well as the results of such operation. (c) The appellant submitted that in the light of the definition given in the Income Tax Act and above referred landmark decision of the Hon ble Supreme Court of India on the matter, following ingredients must exist in an Agricultural Income: (i) Existence of Land, (ii) Ownership of Lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant. Explanation provided to Sl. No. 24 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 is reproduced as under: Support services to agriculture, forestry, fishing, animal husbandry mean- (i) services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of (a)_ _ _ (b)_ _ _ (c)_ _ _ (d)_ _ _ (e)_ _ _ (f)_ _ _ (g)_ _ _ Plain reading of the aforesaid entry reveals that cultivation of plants and rearing of all life forms of animals (except rearing of horses) has to be for food, fibre, fuel, raw material or other similar products or agricultural produce, only then it can be classified as support services to agriculture, forestry, fishing, animal husbandry. In other words, cultivation of plants and rearing of all life forms of animals (except rearing of horses) other than for food, fibre, fuel, raw material or other similar products or agricultural produce shall not fall within the meaning of support services to agriculture, forestry, fishing, animal husbandry as meant by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f horses, for food, fibre, fuel, raw material or other similar products. 15. It is evident that the appellant is engaged in business of cultivation, planting and nurturing of mangrove seeds and seedlings for the primary purpose of environmental protection by way of enhancing biodiversity and re-establishing the ecosystem functions and such services are not related to cultivation of plants for food, fibre, fuel, raw material or other similar products. Therefore, none of the activities carried out by the appellant for the purpose as laid down in the agreement qualifies to be agriculture as claimed by him which is essential to be classified under SAC 9986. In our opinion, the services rendered by the appellant can be classified as Other environmental protection services and not as Support services to agriculture, forestry, fishing, animal husbandry . In view of above discussion, we find no infirmity in the ruling pronounced by the WBAAR being that the supply of services for plantation of mangrove seeds and seedlings in coastal areas shall be covered under Serial Number 32 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 having SAC 9994 and shall attract GST @ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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