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TMI Blog2023 (11) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- under SGST and Rs. 5,000/- under CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided nor are pending before any authority under any provisions of the CGST/TGST Act' 2017. The application is, therefore, admitted after examining it and the records called for and after hearing the applicant as per section 98(2) of TGST Act' 2017. 4. BRIEF FACTS OF THE CASE: The applicant, M/s. Avinja Biotechnologies private limited, Production and manufacturer of Bio Fertilizers and Immunity Boosters Under Bio Fertilizer: They have two segments i. Urban Roots. ii. Bio Kavach. Urban Roots: Helps in treating the soil to be healthy and free of pollution through bioremediation. Bio Kavach: Helps in improving the nutrient balance of the soil and restores soil fertility. Immunity Boosters Natural Herbal Supplement for prevention and P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al position as follows: a. With respect to Bio Fertilizer they submitted the classification under HSN Code and rate of tax under CGST as follows: HSN 31010092 (GST Rate 5 %): Description: ANIMAL OR VEGETABLE FERTILISERS, WHETHER OR NOT MIXED TOGETHER OR CHEMICALLY TREATED; FERTILISERS PRODUCED BY THE MIXING OR CHEMICAL TREATMENT OF ANIMAL OR VEGETABLE PRODUCTS ANIMAL OR VEGETABLE FERTILISERS, WHETHER OR NOT MIXED TOGETHER OR CHEMICALLY TREATED; FERTILIZERS PRODUCED BY THE MIXING OR CHEMICAL TREATMENT OF ANIMAL OR VEGETABLE PRODUCTS: OTHER: ANIMAL EXCRETA They submitted that their product Urban Roots & Bio Kavach can be classified under the above HSN code of 31010092 with a GST rate of 5% which is suitable for the Animal or Vegetable Fertilizers whether or not mixed together or chemically treated. b. With respect to Bio Immunity Booster they submitted the classification under HSN Code and rate of tax under CGST as follows: HS 30039011 (GST Rate 12%) Pharmaceutical products (MEDICAMENTS (EXCLUDING GOODS OF HEADING 3002,3005 OR 3006) CONSISTING OF TWO OR MORE CONSTITUENTS WHICH HAVE BEEN MIXED TOGETHER FOR THERAPEUTIC OR PROPHYLACTIC USES, NOT PUT UP IN MEASURED DOSES OR IN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mischief sought to be suppressed and the remedy sought to be advanced by the Act are external aids'. In SP Gupta v. M Tarkunde AIR 1982 SC 149 (SC 7 member bench), it was held that where the words are clear and cloudless, plain, simple and explicit, there is absolutely no room for deriving support from external aids. And Where the words or expressions used in the constitutional or statutory provisions are shrouded in mystery, clouded with ambiguity and are unclear and unintelligible so that dominant object and spirit of the legislature cannot be spelt out from the language, external aids in the nature of parliamentary debates immediately preceding the passing of statute, the report of the Select Committees or its Chairman, the Statement of Objects and Reasons of the Statute, if any, or any statement made by the sponsor of the statute which is in close proximity to the actual introduction or insertion of the statutory provision so as to become, as it were, a result of the statement made, can be pressed into service in order to ascertain the real purport, intent and will of the legislature to make the constitutional provision workable. In District Mining Officer v. Tata Iron & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification." A survey of the material submitted by the applicant reveals that the issue to be determined is whether the products manufactured by them fall under chapter '30' of the customs tariff code as these products are argued to be medicinal in nature by the applicant. The Hon'ble Supreme Court of India in the case of Commissioner of Central Excise, Mumbai IV Vs Ciens Laboratories (2013) 14 SCC 133 formulated the following principles for determining the nature of a product as to whether it is a medicament or a cosmetic: "Firstly, when a product contains pharmaceutical ingredients that have therapeutic or prophylactic or curative properties, the proportion of such ingredients is not invariably decisive. What is of importance is the curative attributes of such ingredients that render the product a medicament and not a cosmetic. Secondly, though a product is sold without a prescription of a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0." The Hon'ble Apex Court in the above case also observed that "What is more relevant is the purpose for which the product is used namely, functional test". In Commissioner of Central Excise v. Wockhardt Life Sciences Limited (2012) 5 SCC 585 the Hon'ble Apex Court while discussing the Interplay of Chapter 30 vis-à-vis Chapter 34 (which deals with detergent products), observed that: "In our view, as we have already stated, the combined factors that require to be taken note of for the purpose of the classification of the goods are the composition, the product literature, the label, the character of the product and the use to which the product is put." Drawing from the above and based on the information submitted by the applicant, the undersigned authority for advance ruling propose to classify the products either as a cosmetic whose primary function is care and not cure which is used for enhancing-improving a person's appearance -beauty or on the other hand a medicament used to treat or cure a medical condition by adopting the following parameters: The product should have a drug license. The Composition of the product should have medical ingredients. The product ..... X X X X Extracts X X X X X X X X Extracts X X X X
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