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2021 (12) TMI 268 - AAR - GSTClassification of goods - Epoxidised Soya bean Oil - to be classified under tariff item 1518 of Schedule-I (taxable at 5%) or Schedule-II (taxable at 12%) of Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017, as amended from time to time? - HELD THAT:- The product Epoxidised soyabean oil is chemically modified (epoxidised) oil. The chemical modification is such that its double bond - the Epoxidised Soyabean Oil is covered under the above chapter heading 1518. In case of COMMISSIONER OF CENTRAL EXCISE, SURAT-II VERSUS CONSUMER PLASTICS PVT. LTD. [2005 (10) TMI 321 - CESTAT, MUMBAI], the Tribunal held that the Epoxidised vegetable Oil used as plasticisers or stabilisers in plastic industry, classifiable under Chapter 15 of Central Excise Tariff and not under Heading 38.12 ibid. Whether the product Epoxidised soyabean oil is covered under the Schedule-I or Schedule-II of Notification No.01/2017-CT dated 28.06.2017? - HELD THAT:- The product Epoxidised Soya bean Oil is mainly manufactured from the raw material refined soyabean Oil which is a vegetable Oil and the said product obtained by treating vegetable oil by reaction in the presence of catalyst and in other words it can be said that the product is chemically modified vegetable Oil. On going through the description of goods mentioned above in Entry No.90 i.e. 'Vegetable fats and Oils oxidized by heat in vacuum or inert gas or otherwise chemically modified” which covered the Epoxidised Soya Oil. Hence, the said Epoxidised soyabean oil obtained by oxidized by heat in vacuum or chemically modified oil is rightly fits/covered under the said entry No.90. On. the similar issue, in case of IN RE : AGARWAL INDUSTRIES PVT. LTD. [2018 (9) TMI 973 - AUTHORITY FOR ADVANCE RULING - ANDHRA PRADESH] it was observed that since the product under question is manufactured out of Vegetable fats/ oils and not from animal fats/ oils, therefore, the correct HSN Code of “Energy-G premium Oil” is HSN 1518 vide S. No. 90 of Schedule I of Notification dated 28-6-2017 and the applicable rate of tax is 5%. The Deputy Commissioner, Registrar, AAR, Andhra Pradesh informed that no appeal has been filed against the abovesaid order of AAR - It is found that in this case also the Epoxidised Soyabean Oil is manufactured from Soyabean refined Oil i.e. vegetable oil not from the animal fats/Oils. Hence the above order is applicable in this case also. The product epoxidized Soya Oil is a chemically modified soyabean oil and falls under chapter heading no.1518 and specifically covered under entry no.90 of Schedule-I of Notification No.01/2017 dated 28.06.2017.
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