Specific tariff classification and end-use GST rate determine Ammonium Sulphate treatment for fertilizer supplies and other uses.

Ammonium Sulphate is treated as classifiable under HSN 310221 because the tariff contains a specific entry covering the product, and classification follows that specific description regardless of end use. For GST, the concessional 5% rate applies when the supply is for direct use as fertilizer or for manufacture of complex fertilizers for agricultural use, while supplies for other uses attract 18% under the rate notification and CBIC circular. The operative distinction is the legally recognised end use of the supply, with concessional treatment confined to agricultural fertilizer use.

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Issues: (i) Whether Ammonium Sulphate is classifiable under HSN 310221. (ii) Whether GST at 5% applies to Ammonium Sulphate supplied for direct use as fertilizer or for manufacture of complex fertilizers for agricultural use, and 18% applies for other uses.

Issue (i): Whether Ammonium Sulphate is classifiable under HSN 310221.

Analysis: The product was examined against the tariff and the explanatory notes. A specific entry existed for Ammonium Sulphate under CTH 310221. The classification was held to follow the specific tariff description, and the product was treated as falling within that heading irrespective of its end use.

Conclusion: Yes. Ammonium Sulphate is classifiable under HSN 310221.

Issue (ii): Whether GST at 5% applies to Ammonium Sulphate supplied for direct use as fertilizer or for manufacture of complex fertilizers for agricultural use, and 18% applies for other uses.

Analysis: The rate notification and the CBIC circular were applied to distinguish supplies meant for direct fertilizer use or for manufacture of fertilizers for agricultural use from supplies for other purposes. The ruling accepted the concessional rate for agricultural fertilizer use and the higher rate for non-fertilizer use.

Conclusion: Yes. GST at 5% applies to supplies for direct fertilizer use or for manufacture of complex fertilizers for agricultural use, and GST at 18% applies for other uses.

Final Conclusion: The product was classified under the specified tariff heading, and the applicable GST rate was determined by the end use of the supply, with concessional treatment available only for agricultural fertilizer use.

Ratio Decidendi: Where a product has a specific tariff entry, classification follows that specific entry, and the applicable GST rate may depend on the legally recognised end use covered by the relevant rate notification and circular.

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