Case Title | Shivam Agro Industries |
Court | Appellate Authority for Advance Ruling, Gujarat |
Honorable Judges | Member P Gupta and Member Seema Arora |
Citation | 2021 (8) GSTPanacea 46 HC Gujarat GUJ/GAAAR/APPEAL/2021/24 |
Judgement Date | 06-August-2021 |
Council for Petitioner | Mr Rahul Bhatt |
Council for Respondent | Not applicable |
In favour of | Assessee |
Section | Classification of goods and Section 100(1) of the CGST Act,2017 |
The Appellate Authority for Advance Ruling, Gujarat bench of Member Member J.P Gupta and Seema Arora, held that the products “”Zn EDTA”” and “”Fe EDTA”” are covered under Sl. No. 56 of Schedule-II of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended attracting 12% GST.
FACTS OF THE CASE
Appellant sought advance ruling that Zn EDTA’ and ‘Fe EDTA’ were classifiable under Chapter Heading 2833, 2921, 3105 or 3808 or any other Chapter Heading of the Customs Tariff Act, 1962. Authority for Advance Ruling held that “” Zn EDTA”” and “” Fe EDTA”” were classifiable under HSN 3824 99 90 of the First Schedule to the Customs Tariff Act, 1975. Appellant submitted that these products are classifiable under Chapter Heading 3105, Tariff Item 3105 90 90) as ‘other fertilisers’, whereas the AAR has held these products are classifiable under Tariff Item 3824 99 90 of the CTA, 1975.Appelant filed appeal against ruling
COURT HELD
It cannot be said that ‘Zn-EDTA’ and ‘Fe-EDTA’ contain at least one of fertilizing elements nitrogen, phosphorus or potassium as essential constituent which is one of prime requirements as per Chapter Note 6 of Chapter 31 of the CTA, 1975 to term a product as “” other fertilizer”” classifiable under heading 3105 Essential character of product ‘Zn EDTA’ is given by Zinc and essential character of product ‘FeEDTA’ is given by Iron Therefore, as indicated in Explanatory Notes of HSN for Chapter 31 under heading “” General”” and as clarified by CBEC Circular No. 1022/10/2016-CX, “” Zn EDTA””and “” Fe EDTA”” are classifiable under heading 3824 / Tariff Item 3824 99 90 of the CTA, 1975 as chemical products not elsewhere specified or included. The products “” Zn EDTA”” and “” Fe EDTA”” are classifiable under heading 3824 / Tariff Item 3824 99 90 of the CTA, 1975. Advance Ruling is confirmed and appeal is dismissed. The products “”Zn EDTA”” and “”Fe EDTA”” are covered under Sl. No. 56 of Schedule-II of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended attracting 12% GST.
ANALYSIS OF THE JUDGEMENT
As per the above case, we analyse that the rate of GST applicable on Zinc Ethylenediamine Tetra Acetic Acid is 12%.
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Shivam Agro Industries
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