TaxTMI 
TaxTMI 
2019 (12) TMI 1573
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Central Goods and Services Tax Act and Uttarakhand Goods and Service Tax act, 2017 (here in after referred to as "the CGST Act and UKGST Act") by the concerned officer of the Central Goods and Services Tax, Dehradun (here in after referred to as the "Applicant") against the Advance ruling order No. 18/2018-19 date 06.02.2019 by the authority for Advance Ruling Uttarakhand in an application made by them. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UKGST Act are the same except for certain provision. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding provisions under the UKGST Act.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r and use of the said good. In instant case the AMI arc colony of micro-organisms that can live and grow in an environment devoid of oxygen i.e. anaerobic environment and the primary use is to decompose biological waste generated by humans. Since AMI fasten the decomposition process so they act as an enzyme rather than a fertilizer and therefore more appropriately classifiable under Chapter 35 of the CGST Tariff under sub-heading 35079069. b. Hon'ble Advance Ruling Authority, (Uttarakhand) overlooked the fact that AMI decomposes biological waste generated by humans into useable water and gases in an eco-friendly manner. These bacteria inoculums or AMI are specially developed in a monitored and controlled environment. In a way AMI wor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e should be classifiable under the chapter heading 3507 of Goods and Service Tax Tariff, 2017. Therefore the Advance Ruling Authority, Uttarakhand appears to have erred in classifying the AMI under chapter sub-heading 31010099 of the heading 3101 of the GST Tariff. d. Hence in the view of the above of facts, it appears that AMI has been wrongly classified under chapter sub-heading 31010099 of the heading 3101 of the GST Tariff. 3.2 Accordingly, in light of the aforementioned submissions, the department has sought relief from the Appellate Authority for Advance Ruling, Uttarakhand, in the following terms:- (i) Setting aside/modifying the impugned Advance Ruling passed by the Advance Ruling Authority (Uttarakhand) which classifies "A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cts tax rate 5%. Shri Bathla also stated that the product AMI does not get covered under heading 3507 as stated by the department but gets covered as live bacteria. In support of their claim they also submitted a copy of opinion issued to them by Dr Lokendra Singh, retired Director in Defence Research and Development Organisation and an eminent scientist who was a part of the team who developed this technology. DISCUSSION AND FINDINGS: 5. Main appeal memorandum against advance ruling order No. 18/2018-19 date 06-02-2019 was submitted by the concerned officer CGST on 28-03-2019 with an application of condonation of Delay, so this appeal could not be registered. 6. Since there has been a delay of only 14 days in fling appeal against ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by Indian Railways. The whole process is eco-friendly and waste is broken down into gases and water. The remaining sludge is minimum quantity which may or may not be used as organic manure. The contention put during the time of hearing that the dung with AMI can be used as fertiliser appears to be a weak attempt to justify their claim of the product as fertilizer. The dung is used as the base for the culture of AMI and this AMI growth in no way adds to the fertilizing property of dung. Moreover, the company is manufacturing and selling AMI for bio degrading human waste and not AMI infused dung as fertilizer. Thus, it is not the AMI which is organic manure but at the most the products resulting out of its actions which can be put into use a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is found that the product 'AMI' are not any product of living cell or organism,' rather they are themselves culture/colonies of bacteria put in the medium of dung. They are also not acting as a catalyst in the strict sense rather they digest the waste products releasing water and gases as by products. Therefore. 'AMI' cannot be classified under the heading of 'Enzyme' as contended in the appeal filed by the CGST officer. During the hearing the party's representative Shri Bathla also stated that their product may get covered as live bacteria. 10. After a careful study of the GST Tariff, we find that it contains a specific entry which appropriately applies to products having properties of AMI and accordingly....