TaxTMI 
TaxTMI 
2026 (4) TMI 356
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....nance with the objectives of the Government of India's National Policy on Biofuels, 2022, which, inter alia, encourages the blending of biodiesel with High Speed Diesel (HSD) to reduce the carbon footprint and promote sustainable energy practices. 3. Further, the applicant submits that the use of used cooking oil for conversion into biodiesel is expressly permitted under the Government of India's National Policy on Biofuels, 2022. In this regard, reliance is placed on Clause 3.2(iii) and Clause 5.2 of the said Policy, which recognize and promote the utilization of waste-based feedstock for biodiesel production. The applicant operates a manufacturing facility spread over more than 100 acres of land and has an installed capacity to produce approximately 450 tonnes of biodiesel per day. In the course of its operations, the applicant has identified new business opportunities involving the blending of biodiesel with High-Speed Diesel (HSD) in varying proportions and supplying the blended fuel, in bulk packs, as an alternative fuel to large fleet operators. 4. In view of the above facts, the applicant has sought an advance ruling to determine the appropriate HSN Code under which th....
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....anization. Accordingly, the Rules for the Interpretation of the First Schedule to the Customs Tariff Act, 1975, including the relevant Section Notes, Chapter Notes and the General Explanatory Notes, are applicable for the interpretation of the GST Tariff and the corresponding rate notifications. Based on the aforesaid principles, the applicant is of the view that the products under consideration are classifiable under HSN 2710 20 20 and HSN 3826 00 00 based on the biodiesel bled percentage in terms of the interpretative principles laid down under Rule 3(2) of the General Rules for the Interpretation of the First Schedule, for the reasons elaborated hereinafter. 7.2 It is further contended that tariff item 2710 20 20 specifically covers B20, being a blend consisting of 20% biodiesel and 80% High Speed Diesel. Accordingly, the applicant submits that the supply of B20 is not liable to GST. In support of the said contention, the applicant has reproduced the relevant extracts of the Chapter, heading, sub-heading and tariff item of the Customs Tariff. The applicant further submits that Chapter 27 of the Customs Tariff covers mineral fuels, mineral oils and products of the distillat....
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....GST at the applicable rate under the GST framework. PERSONAL HEARING PROCEEDINGS HELD ON 16.01.2026 8. C.A Akbar Basha, Authorised Representative of the applicant, appeared for personal hearing proceedings and reiterated the facts narrated in their application. Further, the applicant submitted synopsis of the case along with relevant notifications and explanatory notes. FINDINGS & DISCUSSION 9. At the outset we would like to make it clear that the provisions of the CGST Act, 2017 and the KGST Act, 2017 are in pari materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 10. We have carefully examined the submissions made by the applicant, the documents placed on record and arguments made by the applicant during personal hearing, the relevant provisions of the Customs Tariff Act, 1975, the Central Goods and Services Tax Act, 2017, the GST rate notifications, the Harmonised System of Nomenclature (HSN) Explanatory Notes. ....
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....; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waster oil." Sub-heading 271020 Covers "Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel other than waster oil. Further the sub heading 271020 divided in 3 tariff item which is reproduced below:- Tariff Item Description of goods 27102010 Automotive diesel fuel, containing biodiesel, conforming to Standard IS 1460 27102020 Diesel fuel blend (B6 to B20) conforming to standards IS 16531 27102090 Others. As per Notes No. 2 to this Chapter, References in heading 2710 to "Petroleum oils and oils obtained from bituminous minerals include not only petroleum oil and oils obtained from bituminous minerals but also similar oils, as well as those consisting mainly of mixed unsaturated hydrocarbons, ....
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....nous minerals." Biodiesel consists of mono-alkyl esters of fatty acids of various chain lengths, immiscible with water, with a high boiling point, low vapour pressure and a viscosity similar to that of diesel oil produced from petroleum. Biodiesel is typically made by a chemical process called transesterification, whereby the fatty acids in oils or fats react with an alcohol (usually methanol or ethanol) in the presence of a catalyst to form the desired esters. It can be obtained from vegetable oils (e.g., rapeseed, soya-bean, palm, sunflower, cotton-seed, jatropha), from animal fats (e.g., lard, tallow) or from used oils or fats (e.g., frying oils, recycled cooking grease). Biodiesel itself contains neither petroleum oils nor oils obtained from bituminous minerals but can be mixed or blended with distillate fuels obtained from petroleum or bituminous minerals (e.g., diesel, kerosene, heating oil). Biodiesel can be used as fuel for compression-ignition internal combustion piston engines, production of thermal energy or similar uses. This heading excludes:- (a) Mixtures containing, by weight 70% or more of petroleum oils or of oils obtained from bituminous....