TaxTMI 
TaxTMI 
2019 (3) TMI 1954
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....on 98(5) of the Central Goods and Service Tax Act and Uttarakhand Goods and Service Tax Act, 2017 (hereinafter referred to as "the CGST Act and UKGST Act"), vide Ruling No.13/2018-19 dated 18.12.2018 passed against application no. 12 made by M/s Sam Overseas. An opportunity of personal hearing was granted to the applicant on date 13-02-2019, but no one was present on behalf of the firm. An adjournment application was submitted by the partner of the firm on the date of hearing. In order to give another chance to the firm again, a second notice was issued for hearing on date 28-03-2019. Again no one appeared on behalf of the firm but a mail was received with the message "Please do the needful". In light of the above the appeal reference is....
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....of 'All goods other than Seed quality' at Sl.No. 63 in the Schedule-1 of the said Tariff in the GST Tariff. Accordingly the tax is leviable at the rate of 5% on supply of these Rejected Wheat Seeds and Rejected Paddy Seed." (B) Shri Amit Gupta observed that: "To avoid classification disputes, notifications issued by the government indicate that Customs Tariff has been adopted for descriptive classification of goods under GST. The section notes, chapter notes and Rules of interpretation of Customs Tariff have also been adopted. On Going through the relevant HS Code of the Customs Tariff I observe that the 'seed of wheat and Meslin' has bee' n given under the HS Code 10011100 and also, under HS Code 10061010, Rice in....
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....ginous fruits; miscellaneous grains, seeds and fruits; industrial or medicinal plants; straw and fodder". Even cursorily, wheat and paddy (rice) do not appear to be covered by the description of this Chapter heading. They could have been included under this chapter only if there was no specific entry elsewhere in the tariff. On the contrary, we find that Chapter 10 of the said tariff specifically covers all cereals and both wheat and rice. Being undoubtedly cereals, will appropriately be covered by this chapter. The very fact that the tariff uses the term 'seed quality' clearly proves that these goods are distinct and different from regular wheat or rice grains. Seed quality grains are controlled cultivated and a lot of research ....
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....reasons, 'rejected wheat or paddy seeds' cannot be covered by Entry Serial 63 covering Chapter 12 of the GST Tariff. The seeds of both wheat and paddy, rejected or otherwise, are also appropriately classifiable under Chapter 10 of the tariff ibid. We are partially in agreement with the views and reasoning of Sri Amit Gupta, Ld. AAR that 'rejected wheat seeds' and 'rejected paddy seeds' fall under Chapter sub-headings 1001 and 1006 respectively. In fact there are specific entries in the tariff. Chapter sub heading 1001 11 00 covers seeds of Durum wheat while 1001 91 00 covers seeds of other varieties of wheat. Similarly, Chapter sub heading 1006 10 10 covers paddy (rice) of seed quality. However, we find that '....