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2020 (9) TMI 587 - AAR - GSTClassification of goods - bio agricultural products i.e. RhizoMyx and Rhizomyco - Classifiable under Chapter 3101 or under Chapter 3002 of CETA Act 1985 - N/N. 01/2017-Central Tax (Rate) dated 28.06.2017 - Whether the products manufactured by the applicant fall under the Sub-heading 3101 or otherwise? - HELD THAT - As per Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 the sub-heading 3101 covers animal fertilisers or vegetable fertilisers or organic fertilisers. For the purpose of clarity we will have to refer to the definitions of animal fertilisers organic fertilisers and organic fertilisers - 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. On comparing the definition as well as the uses of Biofertilizers vis-a-vis Animal fertilier/organic fertilizer/vegetable fertilizer it can be seen that Biofertilsers 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-organisms(excluding yeast) which falls under Sub-heading No.30029030. Thus it can be concluded that the biofertilizers namely Rhyxomyx and Rhyxomyco manufactured and supplied by the applicant are classifiable under Tariff item No.30029030 of the First Schedule to the Customs Tariff Act 1975(51 of 1975).
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