TaxTMI 
TaxTMI 
2026 (2) TMI 1252
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....atic organisms. The usage of the aerators is exclusively for aquaculture/fish farming/ shrimp ponds. The components of the Aerator are Electric motor, Floats (usually HDPE), Gearbox, Paddles and Stainless steel or galvanized metal shafts. 3. The applicant has sought an advance ruling on the following question:- Whether the product namely "Paddle Wheel Aerators" (including its parts) which are manufactured and/or sold by the applicant and used exclusively in aquaculture operations (such as shrimp and fish farming) are classifiable under: HSN 8436: "Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders" as specified in SI. No. 199 of Schedule II - 6% to Notification No. 1/2017-Central Tax (Rate), as amended from time to time attracting GST at the rate of 12%. OR HSN 8479: "Machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter." as specified in SI. No. 366 of Schedule III - 9% to Notification No. 1/2017-Central Tax, as amended from time to time (Rate....
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....rom accompanying words. Therefore, aquaculture equipment should be interpreted in the same category as poultry and bee-keeping machinery. (g) Heading 8479 is a residual entry covering: "Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter." As established by jurisprudence and classification rules, the residual heading applies only where no other heading captures the product's function or use. Therefore, invoking Heading 84 79 would be incorrect in law, as it is settled that a specific heading prevails over a general/residual one. (h) Therefore, Paddle Wheel Aerators merit classification under HSN 8436, specifically attracting 12% GST under SI. No. 199 of Schedule II to Notification No. 1/2017-Central Tax (Rate), as amended. 5. The applicant has further submitted that the subsequent to the filing of advance ruling application, the Central Government has issued Notification No. 9/2025-CT(R) dtd. 17.09.2025, whereby the rate of tax applicable to goods classifiable under HSN 8436 has been reduced to 5% w.e.f. 22.09.2025. 6. Personal hearing was granted on 06.02.2026 wherein Shri Meet Parikh and Shri ....
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....depicted in National Policy for Farmers, 2007, which includes fishers also. They have also relied upon the judgement of CESTAT Chennai in the case of Suyog Agro Poultry Products Pvt. Ltd. Vs C.C. (Sea-Imp.), Chennai reported at 2016 (335) E.L.T. 350 (Tri. - Chennai) which has held that Paddle Wheel Aerators fall under Heading 8436 of the Customs Tariff Act, 1975. Reliance is also placed by them on the definition of 'Agricultural produce' mentioned in Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, which includes "rearing of all life forms of animals". 11. The reliance on the National Policy for Farmers (2007) definition is misplaced, as it overlooks the policy's intended breadth. The Preface explicitly states that the framework is "defined holistically and not merely on agriculture," distinguishing it from a standard Agriculture Policy. By design, the definition encompasses a wide spectrum of activities across multiple sectors, rather than being restricted solely to traditional agriculturalists. We find that the Supreme Court in the case of Commissioner of Income-tax West Bengal, Calcutta v. Benoy Kumar Sahas Roy, AIR (1957) Supreme Court 768 has held as under:- ....
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....urt, further, held as under:- The relevant entry in the Act as its historical background show was intended to provide electricity at concessional rates or free of any charge to the farmers by dividing them into classes such as small farmers and others farmers. A farmer would be an agriculturist in the traditional sense and narrow meaning of the term. A person engaged in aquaculture or fish farming would not be called a farmer. Neither the legislature while enacting the schedule to the Act as it originally stood nor the State Government issuing the notification amending the schedule can be attributed with the intention that they had intended to make available electricity at concessional rate or without charge to aquaculturists whose activity is purely commercial. We are also not prepared to hold that in the circle of agriculturists fish farming is understood as agriculture. In our opinion, for the purpose of interpreting the Act and the notification issued thereunder, the term 'agriculture' has to be read in contradistinction with the term 'aquaculture'. Pisciculture is a branch of aquaculture. Pisciculture is not agriculture. 14. We find that the purpose of the....
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....classification of a product, which is to be best left to the wisdom of judicial/quasi-judicial authorities. A similar issue came up before the Bombay High Court in the case of Schulke India Pvt. Ltd Vs Union of India [2024 (91) G.S.T.L. 225 (Bom.)], wherein the Revenue relied upon a Press release dated 15.07.2020 to classify alcohol-based hand sanitizers as disinfectants like soaps, antibacterial liquids, Dettol etc., which attracted GST at the rate of 18% whereas the petitioner wanted to classify it as 'medicament'. It was also contended that the Press release is an executive instruction under Article 73 of the Constitution read with Article 77 of the Constitution. The High Court held as under:- "23. As noted earlier, the impugned Press Release, does not indicate that the same is relatable to either Article 73 or Article 77 of the Constitution. Though that, by itself, may not be a ground to strike down the impugned Press Release, still, in the absence of any such indication or compliance with the provisions of Article 77 of the Constitution, we cannot simply accept that the impugned Press Release is indeed an instance of the exercise of executive power by the Union. In th....