TaxTMI 
TaxTMI 
2024 (8) TMI 646
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Petitioner's case and after going into the validity and legality thereof to quash and set aside the impugned ruling dated 08.03.2021 passed by the Ld. GAAAR read with the ruling dated 02.07.2020 passed by the Ld. GAAR; (b) That this Hon'ble Court be pleased to issue a writ of mandamus or any other writ order or direction under Article 226 of the Constitution of India to determine the classification of the products in question "RhizoMyx" and "RhizoMyco" under Chapter Heading 3101 at Sr. No. 182 of Schedule-I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 as "All goods i.e. animal or vegetable fertilisers or organic fertiliser" (c) That pending the hearing and final disposal of this Petition, the Respondents by themselves, their officers, subordinates, servants and agents be restrained by an interim order and injunction of this Hon'ble Court from taking any steps or proceedings in pursuance of and/or in furtherance of and/or in implementation of advance ruling dated 02.07.2020 passed by the GAAR and impugned ruling dated 08.03.2021 passed by the GAAAR to the extent that they are adverse to the Petitioner; (d) For any other ad interim relief as this Ho....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... organic fertilizers put up in unit containers and bearing a brand name", OR Under Chapter Heading 3002 (hereinafter referred to as 'CTH 30.02') chargeable to GST at 12% under Sr. No. 61 of Schedule-III of Rate Notification as "Animal blood prepared for therapeutic, prophylactic S or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; toxins, cultures of micro-organisms (excluding yeasts) and similar products". 3.4. The GAAR vide Advance Ruling dated 02.07.2020 held that the products manufactured by the petitioner qualify as bio-fertilizers and further observed that the bio-fertilizers produced by culturing of micro-organisms, which would be covered by the entry 'Cultures of mirco-organisms (excluding yeast)' under the Tariff Item No. 30029030 and chargeable to GST at the rate of 12% under Serial No.61 of Schedule II of Rate Notification. 3.5. The petitioner being aggrieved challenged the Advance Ruling before the Appellate Authority by preferring an appeal. The Appellate Authority by the impugned order dated 08.03.2021, rejected the appeal filed by the petitioner and affi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....39;Organic manure' since the appellant had sought Advance Ruling in respect of the classification of their product 'Organic manure' vide their application for Advance Ruling dated 12.03.2019 (revised on 15.08.2020). It therefore follows, that the contents of their product 'Organic manure' (for which they had sought classification) as well as that of the input 'Organic manure' (which forms a major constituent of the products i.e. Phosphate Solubilising Bacteria and Potassium mobilizing Biofertilizer), will obviously be the same. We also find that the Gujarat Authority for Advance Ruling (GAAR) vide the impugned order dated 17.09.2020 had classified the product Organic manure' of the appellant under Chapter sub-heading No. 31059090 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) which was liable to GST at 5% in terms of Sl.No. 182D of Schedule-I of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 as amended on the following grounds: (i) Chapter heading 3101 00 which reads as 'Animal or vegetable fertilisers, whether or not mixed together or chemically treated; fertilisers produced by the mixing or chemical treatment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of animal or vegetable products or otherwise. The above analysis of the individual ingredients of the product claimed to be 'organic fertilizers' indicates that the same is derived from a mixture of animal products, vegetable products, minerals and chemically synthesised molecules i.e. the product is not exclusively a mixture of animal or vegetable products and hence cannot be covered under the Chapter Heading 3101 of the first schedule to the Customs Tariff Act. (iv) The composition of the product contains Amino Acids (Bio-culture amino acids) and the key elements of an amino acid are Carbon (C), Hydrogen (H), Oxygen (O) and Nitrogen(N), although other elements are found in the side chains of certain amino acids, hence presence of nitrogen is visible. Further, it contained potassium humate, hence presence of potassium is also visible. Rock phosphate which is also one of the components of the product is a non-detrital sedimentary rock that contains high amounts of phosphate minerals, hence product also contains phosphate elements. In addition, the product also contains minerals viz. sulphur powder and bentonite. Thus, the product is a mixture of animal or vegetable prod....
X X X X Extracts X X X X
X X X X Extracts X X X X
....etitioner and decide the same de novo in accordance with law after giving an opportunity of hearing to the petitioner and considering the reasons assigned by the Appellate Authority in case of M/s. GB Agro Industries. 5. On the other hand learned AGP Mr. Raj Tanna as well as learned advocate Ms. Sancheti would not controvert the above submissions of the learned advocate Mr. Nainawati about the contradictory decisions arrived at by the Appellate Authority with regard to the classification of bio-fertilizers. 6. Having heard learned advocates for the parties and considering the facts of the case, it is apparent from the impugned order dated 08.03.2021 that the bio-fertilizers produced by the petitioner are held to be classified under Chapter 3002 whereas in the order dated 20.07.2021, passed by the Appellate Authority, the bio-fertilizers are held to be classified under Chapter 3105 in case of M/s. G.B. Industries. Thus, there are contradictory findings arrived at by the Appellate Authority pertaining to the classification of the bio-fertilizers produced by the petitioner and the other manufacturer i.e. M/s. GB Agro Industries. 7. It is also pertinent to note that the GST rate app....