Case Title | Maurya Chemicals |
Court | Appellate Authority for Advance Ruling, Maharashtra |
Honorable Judges | Member Rakesh Kumar Sharma and Member Sanjeev Kumar |
Citation | 2020 (11) GSTPanacea 8 HC Bombay MAH/AAAR/RS-SK/31/2020-21 |
Judgement Date | 23-November-2020 |
Council for Petitioner | Mr Vidhyadhar S Apte |
Council for Respondent | Not applicable |
In favour of | Respondent |
Section | Section 97, 100 and 101 of the CGST Act,2017 |
The Appellate Authority for Advance Ruling, Maharashtra bench of Member Rakesh Kumar Sharma and Sanjeev Kumar, held that they can’t identify whether the product is made from waste of Sugar or not.
FACTS OF THE CASE
The Appellant, Madhurya Chemicals is engaged in manufacturing and marketing a product called ‘Shatamrut Chyavan’ which is a supplementary product, which increases the nutritional value of the molasses, and is known as compounded animal feed. The said product improves the production of milk and fat by the cattle and works towards increasing their immunity.
The Appellant from the beginning of the GST era since July 1, 2017 has classified his product under the Heading 2309 of the first Schedule to the Customs Tariff Act, 1975 as applicable to the GST, thereby availing exemption from the payment of GST in terms of SI. No. 102 of the Notification No. 2/2017-C.T. (Rate), dated June 28, 2017 of the CGST Act, 2017. The applicant sought advance ruling on the issue whether the classification of ‘Shatamrut Chyavan’ falling under TSH 2309 90 10 of Customs Tariff Act, 1975 as adopted to GST attracting ‘NIL’ rate (0%) of IGST as per Sr. No. 102 of Notification No. 02/2017 – Central Tax (Rate), dated June 28, 2017 is correct or not.
COURT HELD
The another issue raised was whether the goods falling under TSH 2309 90 10 of Customs Tariff Act, 1975 as adopted to GST can be treated as ‘waste of sugar manufacture, whether or not in the form of pellets under heading 2303’ attracting 5% of IGST as per Schedule I (Sr. No. 104) of Notification No. 01/2017 Central Tax (Rate) dated June 28, 2017 or not. The AAR ruled that the subject product involved in the application is rightly classified by the Appellant under chapter heading 2309, attracting ‘NIL’ rate as per SI. No. 102 of the Notification No. 02/2017 C.T. (Rate), dated June 28, 2017 and discarded the second question asked by the Appellant, stating that the same is not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the Appellant, thereby, holding that the said question is outside the ambit of Section 97(2) of the CGST Act. 2017, and therefore, need not be answered.
Therefore, the coram consisting of Sanjeev Kumar and Rakesh Kumar Sharma upheld the ruling of the Maharashtra Authority of Advance Ruling.
ANALYSIS OF THE JUDGEMENT
As per the above case we analyse that AAAR can not classify products made from waste of sugar or not.
Download PDF:
Maurya Chemicals
For Reference Visit:
AAAR Maharashtra
Read Another Case Laws:
GST Case Law