TaxTMI 
TaxTMI 
2023 (11) TMI 765
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....rther, for the purposes of this Advance 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. I....
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.... product either HSN Code 220299 (GST Rate 18% or HSN 30039011 (GST rate 12%) to be used. In their submission they have state their understanding of the legal 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 (MED....
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....of the legislation . In Doypack Systems (P) Ltd v. UOI AIR 1988 SC 782, it was observed that Dictionaries, earlier acts, history of legislation, parliamentary history. parliamentary proceedings, state of law as it existed before when the Act was passed, the 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 p....
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....erpret the entries in the schedules of the Notification as follows: "Explanation - (1) In this Schedule, "tariff item", "heading", "sub-heading" and "Chapter" shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff 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....
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....rate that curative or prophylactic value is only subsidiary in nature or that the product is covered by the description under chapter notes 5, namely, either it is chiropody or barrier cream to give protection against skin irritants. If the Department fails to discharge this onus, the product has to be treated as medicament and would be covered under Chapter 30." 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 th....