TaxTMI 
TaxTMI 
2026 (3) TMI 1671
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....o any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 1. FACTS AND CONTENTION - AS PER THE AI PLICANT FACTS: The submissions, as reproduced verbatim, could be seen thus- 1.1 The applicant is planning to enter into branded vegetable edible and inedible oils including oils of Sesame, Soya ground nut, rice bran, Palm oil, Jojoba Oil etc. India, the country of temples and holy Pooja rituals, where lighting of lamp is considered as Auspicious. The prayer is considered as incomplete without lighting a lamp. 1.2 Till oil is considered as most auspicious oil for lighting lamp among all vegetable oils however due to heavy cost, it remains out of reach of the common man. Keeping in mind the circumstances and the sentiment of the people, Applicant Company wishes to develop manufacture oil which take care of sentiment of the common people, at affordable prices which can enable common man to purchase and afford Pooja Oil. This is possible by adding say 1% of till with other a....
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....dent from the description which reads" Including Jojoba Oil. Jojoba oil is inedible. It not only covers jojoba oil but it says including Jojoba oil" meaning thereby that other inedible oils are also covered by this entry. Thus, though it is treated as inedible oil it fits in to this entry as it is other fixed oils not chemically modified" pooja oil is thus sesame oil not chemically modified. It also reads "Other fixed oils vegetable oils. The entry is silent on single or mixed. The entry used word "oils meaning thereby that it can be blend of more than one oils. 2.4 While interpreting Taxation statutes interpretation of any statutes all higher forums of judiciary has held that when statute gives rise to two interpretations, interpretation favouring the dealer should be adapted. Hon'ble Bombay high Court in the case of Additional commissioner of sales tax Maharashtra State vs Ankit traders [2011] 46 VST 1 - held in para 22 of the judgement verbatim-[22] In any event, we are of the view that if two views in regard to the Interpretation of section 61(2) are possible, the court would be justified in adopting that Construction which favours the assesses. (see the decisions of the Sup....
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....fied or included." This entry clearly excludes the commodities mentioned elsewhere. It also proves that similar commodities are there in the schedule. Otherwise there would not be a word "not specified elsewhere" This entry at Scheduled II, Sr. no 27 is residuary entry applicable to fats and oils not mentioned elsewhere. Applicants product is mentioned at Scheduled I, Serial number 87 and therefore be excluded from Scheduled II, entry 27 as mandated by Scheduled II, entry 27 itself. In the case of Commercial Tax Officer Rajasthan Vs Binni Cement Ltd [2014) 68 VST 459 Hon supreme court has held that while interpreting tariff schedules "special entry prevail over general entry. Applying this precedent of Hon'ble Supreme Court entry 87 is a special entry and shall prevail over residuary entry 27 HSN 1518 of schedule II of the rate notification. PRAYER Hon'ble Advance Ruling Authority be pleased to hold that Pooja oil impugned by applicant for advance ruling falls under entry at Sr. 87 HSN code 1515 of Schedule - or entry at Sr. No 90 having HSN code 1518, both having rate of tax 2.5% under Maharashtra goods And Service Tax Act 2017 as per the provisions of the notification 1 ....
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....A-01. 3.5 The Applicant is a Private Limited Company. The applicant, as part of their business, manufacture "Pooja Oil", which is primarily a mixture of rice bran/Palm/Soya oil. A small quantity of fragrance also is mixed only for giving fragrance. Therefore, the applicant has sought advance ruling in respect of the following question: Whether "Pooja oil" can be classified under tariff item 1518 of Schedule-I (taxable at 5%.) or Schedule-II (taxable at 12%) of Notification No. 01/2017-State Tax (Rate) dated 29.06.2017, as amended from time-to-time? 3.6 The applicant furnishes some facts relevant to the stated activity; i. The applicant states that for the purpose of manufacture of pooja oil by mixing Palm/Rice bran/Soya oil 99% blended with other vegetable oils 1% It is not perfumed or chemically modified. ii. Notification No. 1/2017 State Tax (Rate) dated 29.06.2017 specifies two different entries for tariff heading 1518, one under entry number 90 of Schedule-I, taxable at 5% GST and the other under entry no. 27 of Schedule-II, taxable at 12% GST. iii. These two different entries under different schedules caused the applicant to file the i....
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....ated 04.07.2025. 5.2 We find that the applicant is proposing to manufacture 'pooja oil' and as per the applicant, the proposed pooja oil to be manufactured by them will consist of a mixture of various vegetable oil and 1% Sesame Oil (Til Oil). Further, they have stated that even though the said pooja oil is completely edible, due to the packaging and labeling requirements prescribed under the Food Safety and Standards Authority of India (FSSAI), the applicant proposes to label the product as" Pooja Oil" and explicitly states "Not for Human Consumption" on the packaging, thereby classifying it as inedible for regulatory and commercial purposes. 5.3 The applicant has submitted that they are planning to enter into branded vegetable edible and inedible oils including oils of Sesame, Soya, Ground nut, rice bran, Palm oil, Jojoba Oil etc. 5.4 The applicant has submitted that till oil is considered as most auspicious oil for lighting lamp among all vegetable oils. However due to heavy cost, it remains out of reach of the common man. Hence, the applicant company wishes to manufacture oil which takes care of sentiment of the common people, at affordable prices which can enable comm....
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.....6.2017 was superseded and as per the said Notification, the tax rates have been notified and bifurcated into the following slabs:- (i) 2.5 per cent. in respect of goods specified in Schedule I; (ii) 9 per cent. in respect of goods specified in Schedule II; (iii) 20 per cent. in respect of goods specified in Schedule III; (iv) 1.5 per cent. in respect of goods specified in Schedule IV; (v) 0.125 per cent. in respect of goods specified in Schedule V; (vi) 0.75 per cent. in respect of goods specified in Schedule VI, and (vii) 14 per cent. in respect of goods specified in Schedule VII, We find that the tax rate for the product proposed to be manufactured by the applicant has to be examined in the light of the aforesaid notification No. 9/2025 dated 22.9.2025. 5.8 We find that Chapter 15 of the Customs Tariff Act, 1975, covers Animal, vegetable or microbial fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes. The different tariff entries of chapter 15 of the Custom Tariff relating to Animal or Vegetable oils and fats are summarised as below. • Chapter Headings 15.01 ....
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....ial purposes. In this respect, we find that, the applicant's assertion regarding the theoretical edibility of the oil is immaterial to the determination of its classification under the applicable tariff. The intended use, market positioning, and labeling of the product makes it unequivocally clear that the said oil is not meant for human consumption but is to be purchased and used solely for other than edible purposes. Therefore it is clear that, the impugned product is manufactured by mixing of two different oils, and therefore not covered under chapter heading 1515. Further, we find that that, in order to classify any product under Chapter heading 1516, it must undergo any chemical modification processes such as hydrogenation, inter-esterification, re-esterification or elaidinization. However, it is seen from the submission and documents presented before us, the impugned product does not undergo any of the processes mentioned above and therefore, the Pooja Oil is not classifiable under Heading 15.16. Chapter Heading 1517 covers mixtures of vegetable oils which are edible. Since the goods proposed to be sold by the applicant is being marketed as non edible and only for non edible ....