2018 (6) TMI 465 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – [2018] 59 G S.T.R. 201 (AAR), 2018 (14) G. S. T. L. 90 (A. A. R. – GST) – Classification of goods – Rate of Tax – Agricultural Soil testing Minilab and its Reagent Refills – whether classifiable under exempted goods falling under Tariff heading 8201 as notified vide N/N. 2/20172017 – Central Tax (Rate), dt.28-06-2017 or otherwise?
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Held that:- A combined reading of chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this heading are basically hand tools of a kind used in agriculture, horticulture or forestry – Whereas the main function of the “Soil testing minilab” is todetermine all the important soil parameters i.e., soil pH, EC, Organic Carbon, available nitrogen, phosphorus, potassium, Sulphur and micronutrients like Zinc, boron and iron and hence cannot be classified as a hand tool along with the items of description given under Tariff heading 8201
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Dated:- 30-5-2018 – Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax) ORDER 1. M/s. Nagarjuna Agro Chemicals Private Limited, Hyderabad, (GSTIN No. 36AABCN5531F1ZP) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act, 2017 read with Rule 103 of CGST/TGST Rules, 2017and sought advance ruling on Rate of Tax on "Agricultural Soil testing Minilab and its Reagent Refills". 2. The applicant submitted Statement containing the applicant's interpretation of law &relevant facts and requested for advance ruling on classification of "Agricultural Soil testing Minilab and its Reagent Refills". They have submitted a copy of Challan evidencing payment of application fee of ₹ 5,000/- 3. A personal hearing was held in this case and Mr. J.V. Rao, Advocate & Authorized Representative of M/s. Nagarjuna Agro Chemicals Private Limited, Hyderabad appeared for personal hearing on 27
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s all the important soil parameters i.e., soil Ph, EC, Organic Carbon, available nitrogen, phosphorus, potassium, sulphur and micronutrients like Zinc, boron and iron. Based on the above findings, it will provide vital information to farmers and suggest them right type of inputs to improve productivity and avoid losses. • Mridaparikshak comes with soil sampling tools, GPS, balance, shaker, hot plate and a smart soil pro, an instrument for determining the soil parameters and displaying of fertilizer nutrient recommendations. It also provides crop and soil specific fertilizer recommendations directly to farmers. • Refill Reagent is nothing but part and parcel of Mini Lab, the essential Soil sampling is one of the most important step in any Soil testing program and it measures overall soil fertility and is a good index of soil nitrogen availability etc., The refilling Reagent contains "Soil Testing Chemical" for conducting soil tests. • It is also evident the &quo
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which a commodity is made up of, the end user test is to be applied in arriving at the correct clarification of the commodity.-(2004) 38 APSTJ 199 (STAT) Vijaya Ganesh Mill Stores v. State of A.P. 6. The issue before us is to determine the classification of "soil testing minilab" and its "Reagent refills". The description of goods falling under Tariff heading 8201 as mentioned at S.No.137 under Notification No. 2/2017 is reproduced below: Sl. No. Chapter/ Heading/ Sub-heading/Tariff item Description of Goods Rate 137 Schedule of notification 2/2017 -Central Tax (Rate) 8201 Agricultural implements manually operated or animal driven i.e. Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry Nil 7. In terms of explanation (iii) and (iv) to N
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ecious or semi-precious stones(natural, synthetic or reconstructed) on a support of base metal, metal carbide or cermet; or (d) Abrasive materials on a support of base metal, provided that the articles have cutting teeth, flutes, grooves, or the like, of base metal, which retain their identity and function after the application of the abrasive. 9. A combined reading of chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this heading are basically hand tools of a kind used in agriculture, horticulture or forestry. 10. Whereas the main function of the "Soil testing minilab" is todetermine all the important soil parameters i.e., soil pH, EC, Organic Carbon, available nitrogen, phosphorus, potassium, Sulphur and micronutrients like Zinc, boron and iron and hence cannot be classified as a hand tool along with the items of description given under Tariff heading 8201 such as Agricultural implements manually operated or animal
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rganic components of liquids, e.g., traces of metals, phosphates, nitrates, chlorides or integral parameters such as "chemical organic demand"and "Total organic carbons" are classifiable under Tariff heading 9027. SimilarlypH meters used to measure the factor expressing the acidity or alkalinity of a solution or mixture are classifiable under Tariff heading 9027. 13. Hence by applying the General rules for interpretation of Customs Tariff as applicable to GST Tariff, as the functions being performed by "Soil testing minilab" are similar to that of an Instrument/Apparatus for physical or chemical analysis, the "Soil testing minilab" is correctly classifiable under heading 9027 of the GST Tariff. 14. Further, as the applicant has stated that the "Refilling Reagent" is a part of "Soil testing Minilab", the parts and accessories identifiable as being solely or principally for use with the Instruments/Apparatus of heading 9027 are
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