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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 ..... seeds and seedlings like Viviparous and Pseudoviviparous groups in the coastal areas across different states of the country as per contracts awarded by internationally acclaimed environmental organizations. The appellant performs this activity under the outsourced arrangements of seeds collection, developing the seeds into seedlings in nurseries, pre-planting activities, planting of seeds, propagules and seedlings with the objective of environmental protection against cyclones and tidal waves. The appellant also aims to create sustainable development and provision of livelihood for the people living in and around such coastal areas by engaging them in the planting activities. 4. The appellant has submitted that the processes involved in executing the activity are as under: i) Initially, the land identification is made for plantation of mangrove seeds & seedlings. ii) Thereafter, trenches are dug on identified areas fortnight in advance to allow sedimentation for planting of the mangrove seeds, propagules and seedlings. iii) The seeds are then collected from the mud lands or water bodies nearby. Sometimes, as per requirement of different species of mangroves, survivability i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall attract tax @ 18% (CGST @ 9% + WBGST @ 9% or IGST @ 18%). 9. The Appellant has filed the instant appeal against the above mentioned Advance Ruling dated 18.08.2022 with a prayer to set aside/modify the said order or pass any such further or other orders as may be deemed fit and proper in the facts and circumstances of the case on the following grounds: a) WBAAR erred in understanding the nature of their work/service and failed to consider the activity of planting of mangrove trees as an agricultural activity; b) WBAAR failed to appreciate that oxygen produced by the mangrove trees via photosynthesis is itself a produce which not only caters to humankinds but also to all other living organisms be it flora or fauna. c) WBAAR has wrongly categorised that such activity does not provide for food, fibre, fuel, raw material or other similar products or agricultural produce. The mangroves protect the coastline and the populace from the ravages of nature. The mangroves are home to numerous species, many of which are edible fish and shellfish. The mangrove wood is hardy and used for construction and fuel and mangrove leaves are used as fodder by the local people. d) WBAAR has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s through basic operation should be in a shape of products either for consumption or for trade. (d) The appellant contends that In case of mangrove trees, it is predominantly clear that the revenue is being derived from land which is situated in India. He is engaged in pure agricultural related activities in respect of plantation and nurturing of mangrove trees. As mentioned in the judgment referred earlier, agriculture is raising a product which is fuel and also environmental protection in case of mangrove trees. These products are raised using human skill and labour as explained in detail for the processes. Also, the product has an essence utility for consumption, be it used as "Fuel" for consumption or by marketing the same a person earns his livelihood. Further, it provides oxygen to both human beings and other living creatures. Thus, these products fall under "operations" or "results" of "agriculture". (e) The appellant further contends that cultivation of land is predominantly a major activity mentioned in details under the process explained above for mangrove trees by way of irrigation, fencing, ploughing, digging trenches, etc and the ultimate item being firewood and ox ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erstood in common parlance, neither is a similar product and definitely is not an agricultural produce within the meaning provided for in serial no. 4(vii) appended to the said notification or even by means of far-fetched imagination. (c) The environment protection activities as carried out by the appellant with the sole objective for the environmental protection and fight against climate change shall be covered under Sl. No. 32 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 having SAC 9994 and therefore shall attract tax @ 18% (CGST @ 9% + WBGST @ 9% or IGST @ 18%) as has been rightly decided by the WBAAR. 12. During the course of hearing held on 22.11.2022, the Appellant's authorised representative reiterated the points as stated in the Grounds of Appeal as well as written submissions. The matter has been carefully examined and written and oral submissions made before us are considered. 13. During the course of hearing, agreement between the applicant and M/s One Tree Planted was also examined in detail. It is seen that as per 'Project details' of the said agreement, the aim of the project is "to enhance biodiversity and re-establish ecosystem function to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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