In Re : Rhizo Organic
GST
2018 (7) TMI 965 – AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN – 2018 (14) G. S. T. L. 600 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN – AAR
Dated:- 16-6-2018
ADVANCE RULING NO. RAJ/AAR/2018-19/04
GST
MR NITIN WAPA, MEMBER CENTRAL TAX AND MR SUDHIR SHARMA, MEMBER STATE TAX
FOR THE APPLICANT : MR B. S. Yadav, Managing Director
RULING
SUBMISSION OF THE APPLICANT
1. M/s RHIZO Organic, E-l 1, Phase-IInd, RIICO, Hanumangarh Jn. (hereinafter referred to as 'Applicant') engaged in the manufacturing of Bio-Fertilizers, submitted an application, seeking an Advance Ruling that Whether the Bio Fertilizer covered under the definition of Organic Manure (HSN code 3101) and What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101)
2. The applicant has submitted a copy of The Fertilizer (Control) Order 1985, Ministry of Agriculture and Rural development regarding definition of Biofert
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ments has stated that Bio Fertilizers are not covered under the definition of Organic Fertilizers . Organic fertilizers means substance made up of one or more unprocessed materials of biological nature (plant/animal) and may include unprocessed minerals materials that have been altered through micro biological decomposition process. While Bio fertilizers means the product containing carrier based (solid or liquid) living microorganisms which are agriculturally useful in terms of nitrogen fixation, phosphorus solubilisation or nutrient mobilization, to increase the productivity of the soil and/or crop. Further he as stated that bio fertilizers are not exempted from GST if put in unit containers bearing registered brand name and fall under Tariff Item 3101 and are chargeable at 2.5% CGST+ 2.5% SGST total GST of 5% .
Issues to be decided:
5. The issue involved in this case is that, Whether the Bio Fertilizer covered under the definition of Organic Manure (HSN code 3101) and What is the
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maize and rice.
c. Azotobacter, Clostridium, Aerobacter, Methanobacterium are free living bacteria which fix atmospheric nitrogen.
d. The leaves of Azolla (an aquatic pteridophyte) have large number of plants of Anabaena (a blue green algae) which have the capacity to fix atmospheric nitrogen which is made available to Azolla.
e. Many free living blue-green algae (Anabaena, Nostoc, Aulosira) fix atmospheric nitrogen. Nostoc is placed in the rice crop and provides nitrogen to rice.
f. Mycorrhiza : It is the symbiotic relationship between roots of higher plants and fungi.
6.2 As regard the classification of Bio-Fertilizers within the HSN Code 3101 as described in the Schedule I and Schedule II of GST?
(A) Entry at HSN Code 3101 in the Schedule I of rate of GST on Goods, comprising of'List of Goods at NIL Rate' states as below:-
“All goods and organic manure other than those put up in unit container and,-(a) bearing a registered brand name; or (b) bearing a brand name on whic
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'ble Mr. Justice N. Santosh Hegde and Hon'ble Mr. Justice Bisheshwar Prasad Singh on 12-8-2002 dismissed on merits the Civil Appeal Nos. 4970-72 of 2002 filed by Commissioner of Central Excise against the CEGAT order Nos. 74-81/2001-C, dated 31-5-2001 and reported in 2001 (131) E.L.T. 355 (Tri.) (Northern Minerals Ltd. v. Commissioner). While dismissing the Civil Appeal the Supreme Court passed the following order :-
The Appellate Tribunal in its order, in question had held that “Dhanzyme” is a bio-fertiliser being a plant growth promoter only, thus classifiable under sub-heading 3101.00 of Central Excise Tariff Act, 1985 and chargeable to nil rate of duty and not classifiable under sub-heading 3808.20 ibid as plant growth regulator.
7. Therefore the Bio-Fertilizers, other than those put up in Unit Container and bearing a brand name will covered under Schedule I of rate of GST on Goods and would attracts NIL rate of duty and if the Bio-Fertiliser is put up in Unit Container and bear
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