Ruling: Tamarind Seed Classified under Schedule-I, Tax Rate 5%

The Authority ruled that Tamarind Seed falls under Schedule - I as per Sl. No. 70 of Chapter/Heading/Sub-Heading/Tariff Item 1207, attracting a tax rate of 5% (2.5% Central tax and 2.5% State tax). The judgment clarified the classification and tax rate applicability for Tamarind Seed under HSN Code 1207, based on the commercial/industrial purpose of the seeds.

---

---

Issues Involved:
1. Interpretation of the tax rate applicability on Tamarind Seed under HSN Code 1209.

Analysis:
The case involved an application filed by M/s Sri Venkata Vijaya Durga Traders seeking an Advance Ruling on whether Tamarind Seed attracts a Nil Rate under HSN Code 1209. The applicant contended that Tamarind Seed should be classified as seeds of fruit trees under the HSN Code, attracting a Nil rate of tax. The applicant relied on various legal provisions and interpretations to support their claim, including the HSN description, the Indian Forest Act, and the Andhra Pradesh Forest Act. They argued that Tamarind trees are forest trees, and hence, Tamarind Seed should be considered as seeds of forest trees under HSN Code 1209, attracting a Nil rate of tax.

The Authority examined the submissions made by the applicant and found that the basic issue was whether Tamarind Seed falls under the Nil Rate of Tax under HSN Code 1209. During the Personal Hearing, it was revealed that the Tamarind Seed traded by the applicant was meant for commercial/industrial purposes, not for sowing. The Authority referred to CBIC FAQs, which classified Tamarind kernel under HSN Code 1207, attracting a tax rate of 5%. The Authority also highlighted that Tamarind was treated as a forest product by the Government of India and Andhra Pradesh, further supporting its classification under HSN Code 1207.

Based on the analysis and findings, the Authority ruled that the Tamarind Seed falls under Schedule - I as per Sl. No. 70 of Chapter/Heading/Sub-Heading/Tariff Item 1207. Therefore, the applicable tax rate for Tamarind Seed is 5% (2.5% under Central tax and 2.5% State tax). The ruling was made under Section 98 of the Central Goods and Services Tax Act, 2017, and the Andhra Pradesh Goods and Services Tax Act, 2017.

In conclusion, the judgment clarified the tax classification and rate applicability for Tamarind Seed, emphasizing its categorization under HSN Code 1207 and the corresponding tax rate of 5%. The ruling provided a definitive interpretation based on legal provisions and factual analysis presented during the proceedings.

---