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2021 (10) TMI 57 - AAAR - GSTClassification of goods - Zn EDTA (Zinc Ethylenediamine Tetra Acetic Acid) - Fe EDTA (Iron Ethylenediamine Tetra Acetic Acid) - classifiable under Chapter Heading 2833, 2921, 3105 or 3808 or any other Chapter Heading of the Customs Tariff Act, 1962? - applicability of S. No. 182D of Schedule – I, S. No. 56 of Schedule – II, S. No. 40, 45 or 87 of Schedule-III, or any other S. No. of any of the Schedules of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 (as amended) and corresponding Notification No. 1/2017-State Tax (Rate) dated 30.06.2017 (as amended) and Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017 (as amended) - whether the supply of products by the applicant to the recipient, who is not registered under the Fertilizer Control Order, 1985, will have any impact on the applicability of particular S. No. of Schedule of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 (as amended) and corresponding Notification No. 1/2017-State Tax (Rate) dated 30.06.2017 (as amended) and Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017 (as amended)? HELD THAT:- It is evident from the specifications for the products ‘Zn-EDTA’ and ‘Fe-EDTA’ given in the Fertilizer Control Order, 1985 that minimum percentage of Zinc is essential in the product ‘Zn-EDTA’ and minimum percentage of Iron is essential in the product ‘Fe-EDTA’, besides some other requirements. However, in the specifications of these products given in the Fertilizer Control Order, 1985, no requirement of any of the fertilizing elements nitrogen, phosphorus or potassium has been mentioned. Therefore, it cannot be said that the products ‘Zn-EDTA’ and ‘Fe-EDTA’ contain at least one of the fertilizing elements nitrogen, phosphorus or potassium as “an essential constituent”, which is one of the prime requirements as per Chapter Note 6 of Chapter 31 of the CTA, 1975 to term a product as “other fertilizer” classifiable under heading 3105 of the CTA, 1975. The products ‘Zn EDTA’ and ‘Fe EDTA’ are covered under serial no. 1(g) of Part-A Schedule-I of the Fertilizer Control Order, 1985, which is for ‘Micronutrients’. As per the Explanatory Note of Chapter 31, even if the micronutrient preparations contain small amounts of fertilizing elements nitrogen, phosphorus and potassium, but not as essential constituents, the said products are excluded from Chapter 31 - the products ‘Zn EDTA’ and ‘Fe EDTA’ do not contain fertilizing elements nitrogen, phosphorus and potassium as an essential constituent. Thus, in view of the Chapter Note 6 of Chapter 31 of the CTA, 1975 and the Explanatory note of Chapter 31, it is held that the products ‘Zn EDTA’ and ‘Fe EDTA’ do not fall under Chapter heading 3105 of the CTA, 1975 as “other fertilizer” - the product “Zn EDTA” and “Fe EDTA” being supplied by the appellant are classifiable under heading 3824 / Tariff Item 3824 99 90 of the CTA, 1975. Applicable rate of GST - HELD THAT:- It is observed that Serial no. 1(g) of Part-A Schedule-I of the Fertilizer Control Order, 1985 covers different ‘Micronutrients’. As already discussed, the products ‘Zn EDTA’ and ‘Fe EDTA’ being supplied by the appellant are covered at entry 7 and 8 respectively of serial no. 1(g) of Part-A Schedule-I of the Fertilizer Control Order, 1985. Further, the appellant has submitted that it is a manufacturer of the said products for which it is registered by the Deputy Director of Agriculture (Extension), District Mehsana, Gujarat under the Fertilizer Control Order, 1985 - the products ‘Zn EDTA’ and Fe EDTA’ being supplied by the appellant are covered under Sl. No. 56 of Schedule-II of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended (and corresponding Notification issued under the GGST Act, 2017) attracting Goods and Services Tax @ 12%.
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