In Re: Nagarjuna Agro Chemicals Private Limited
GST
2018 (12) TMI 1276 – APPELLATE AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – 2019 (21) G. S. T. L. 368 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – AAAR
Dated:- 26-9-2018
AAAR/03/2018 (A. R. )
GST
SHRI V. ANIL KUMAR AND BANKEY BEHARI AGARWAL MEMBER
A.R. Appeal -No. AAAR/03/2018
Dated: 26 September, 2018
ORDER-IN-APPEAL NO. AAAR/03/2018 (A.R.)
(Passed by Telangana State Appellate Authority for Advance Ruling under Section 101 (1) of the Telangana Goods and Services Tax Act, 2017)
Preamble
In terms of Section 102 of the Telangana Goods & Services Tax Act, 2017 (“the Act”, in short), this Order may be amended by the Appellate authority so as to rectify any error apparent on the face of the record, if such error is noticed by the Appellate authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant
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e appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made.
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1. The subject appeal has been filed under Section 100(1) of the Telangana Goods and Services Tax Act, 2017 (hereinafter referred to as “TGST Act, 2017” or “the Act”, in short) by M/s. Nagarjuna Agro Chemicals Pvt. Ltd., 6-3-1219/24, Flat No.302, 3rd Floor, Ujwal Bhavishya Complex, Kundanbagh, Hyderabad – 500 016 having GSTIN 36AABCN5531F1ZP (“M/S. NACPL” / “the appellant”). The appeal is directed against the TSAAR Order No.3/2018 dated 30-05-2018 = 2018 (6) TMI 465 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA passed by the Telangana State Authority for Advance Ruling (Goods and Services Tax) (“Adv. Ruling Authority” / “lower Authority”) in respect of an application for Advance Rul
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om the date of communication thereof to the applicant. The impugned Order dated 30-5-2018 was received by the appellant on 02.06.2018 as mentioned in their Appeal Form GST ARA-02 and they have filed the appeal on 21-06-2018 i.e., within the prescribed time-limit.
II. Brief Facts:
4.1. The appellant had initially filed an application for Advance Ruling in the prescribed Form GST ARA-01 before the Adv. Ruling Authority on the question with regard to the classification, rate of tax and applicability of exemption Notification-entry, as cited above, in respect of the goods “Agricultural Soil Testing Minilab” (also referred to as “Mridaparikshak Minilab”) and its “Refilling Reagents” – hereinafter referred to colly. as “impugned goods”; and separately as “Mridaparikshak”/”Minilab” and “Refilling reagents” respectively. The appellants had stated that the impugned goods were used for determining / verifying soil health in terms of the parameters i.e., soil pH, Electrical Conductivity, Organi
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nature and usage etc. of the impugned goods and the applicable Chapter Notes / General rules for interpretation of the First Schedule to the Customs Tariff Act, 19752 (hereinafter referred to as “the Tariff”) and HSN (Harmonised System of Nomenclature) Notes; arrived at the conclusion that the impugned goods were classifiable under Heading 9027 of the Tariff and pronounced the Advance Ruling accordingly, as reproduced earlier. In essence, the Adv. Ruling Authority rejected the appellants' claims for (i) classification of the impugned goods under Heading 8201 and (ii) exemption thereof under the Notification-entry cited above.
IV: Appeal filed by the Appellant :
5. Against the said Advance ruling Order, the appellant filed the present appeal, inter-alia, on the following grounds:
(i) The Authority failed to appreciate their submissions especially that the product is exclusively meant for Soil Testing which squarely falls under “Agricultural implements of kind used in Agriculture”. H
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Central Tax). After hearing the Advocate explaining his case for some time, it appeared to this Appellate Authority that the nature, functioning etc., of the impugned goods can be better understood / appreciated on the basis of details / explanation given by a proper technical person of the company. The hearing was accordingly adjourned.
6.2. At the next hearing held on 17-9-2018, Sri T.S.R. Murthy, Senior Research Officer (Technical person) of the company appeared, apart from the representatives of the appellant and Department, mentioned above. Both the parties filed written submissions; the appellants also submitted copies of certain documents viz., a leaflet of the item “Mridaparikshak”, Operation manual/Working Protocol for “Mridaparikshak-Minilab”, Soil Health Card apart from a compilation of case-laws relied upon by them.
6.3. Sri T.S.R. Murthy, the technical person explained the various aspects pertaining to the impugned goods including the nature, composition, functionality,
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he kind shown on page 30 of the appeal booklet. During discussions, he explained that the entire Minilab put together, is basically a system for soil analysis, which analyses / measures, and reports (by way of a printout called the Soil Health Card) various soil parameters which are listed on the main item itself. These are as under :
“Soil Parameters:
pH, EC, Organic Carbon Available Nitrogen
Available Phosphorus
Available Potassium
Available Zinc
Available Sulphur
Available Iron
Available Boron
Available Cu
Available Mn
Lime Requirement
Gypsum Requirement
Calcareous”
(b) On further query from the Bench regarding the exact methodology, Sri Murthy explained that usually there are some prior processes required to be completed before the soil sample is placed for analysis by this Minilab. These processes are called quartering, sieving, etc., which are essentially in the nature of filtering fine / finer particles of soil to bring it to a mesh-size which can be analysed by th
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ench, he explained that some parameters such as pH, EC (Electrical Conductivity) and OC (Organic Carbon) are directly measured by the system whereas some others for example “Available Nitrogen” are thereafter internally calculated based on in-built logic/software. For example, the value of the parameter “Available nitrogen” is calculated on the basis of the measured “Organic Carbon”. He explained that the details in this regard are given in the manual filed by them. With this, the technical person concluded his deposition.
(d) The Counsel mentioned that though it is true that the item “Mridaparikshak” is measuring various parameters of the soil and in fact the name itself i.e, Mridaparikshak means 'tester of soil', but the fact remains that the item is working on soil, that the item is used for farmer, that the item is used for agriculture, and that therefore going by the end-use test it should be classified in Chapter 82 as 'Agriculture tools'. He also referred to the case laws which
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phrase used therein namely “all other tools of a kind used for agricultural purpose”. He had nothing more to add.
(f) From Department side, Sri Jay G. Waghmare, Assistant Commissioner, stated that the system Minilab which is the subject of dispute here, admittedly carries out a process of chemical analysis, therefore is rightly classifiable in Heading 90.27. He further mentioned that the Heading 8201 which is claimed by the appellants applies only to hand tools of the kind mentioned therein whereas the system in question is not a hand tool inasmuch as it admittedly uses power and in fact also contains a Hot plate (the heating element in the photograph shown to us earlier by Sri Murthy). (At this point, Sri Murthy clarified that the system can be run either on power or on battery or by using solar power). He had nothing further to add.
VI. Discussion, Findings and Determination of the Appeal:
7. We have carefully considered the submissions on both sides as well as the material avail
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gned Order?
9. In order to determine the aforesaid questions, first the nature, usage etc. of the goods involved (hereinafter also referred to as “impugned goods”) are to be considered, followed by the relevant Tariff entries and statutory provisions etc.; and thereafter, the applicability or otherwise of the exemption-Notification entry to the impugned goods. [Applicability/otherwise of the case-laws cited by appellant is dealt at appropriate places in the course of our discussion & findings].
10. Details regarding the description, nature, functionality, usage etc. of the impugned goods are as available in the detailed record of personal hearing reproduced above [read with the Operation Manual / Working Protocol submitted by the appellants] and hence not reiterated again. From the same, we find as under:
(i) Mridaparikshak is an electronic instrument used for determining various soil parameters i.e. soil pH (roughly termed as power of hydrogen ions)3, EC (Electrical Conductivity),
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ter is displayed on the display panel of the main item Mridaparikshak and also by way of printout called Soil Health Card. The parameters such as soil pH, EC and OC are directly measured by the system/instrument whereas others such as Available Nitrogen are internally calculated by the instrument based on in-built logic/software, on the basis of any of the directly measured parameter. Based on the values of soil parameters, the system gives crop / soil specific recommendation in terms of fertilisers/nutrients needed.
(iii) The Reagents are chemicals/chemical substances supplied in bottles, but the nature i.e, chemical composition of these have not been furnished by the appellants either in their initial AR application or in the subsequent proceedings; during the personal hearing before us, it was claimed that the same is a secret, however, these are identified with assigned description as Reagent I to Reagent 42 on the labels affixed to the reagent bottles. As further explained during
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b as such (and not merely for the Mridaparikshak instrument) even though mentioning that the said Minilab comprises the main electronic instrument Mridaparikshak and also other items/accessories, which are supplied together (including the Reagents in the first supply). The Department / jurisdictional officers have also not raised any dispute as regards whether the supply of Minilab constitutes a composite supply or mixed supply. The Adv. Ruling Authority has determined the single classification under Heading 9027 for the Agricultural Soil testing Minilab as such and not merely for the main item/instrument.
11.3. Thus, we find that proceedings before the lower Authority were on the basis of an un-disputed and un-contradicted position (though not expressly mentioned/recorded so) that the supply of Minilab has been considered as a single supply for which classification was sought and determined on the basis of the nature/usage of the main instrument only and consequently treating the rem
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a set of Reagents and (2) the Refill Reagents subsequently supplied; in terms of the questions framed by us earlier.
12.1. As mentioned earlier, classification of goods for GST-purposes, is based upon the entries in the First Schedule to the Customs Tariff Act, 1975; including the Chapter / Section Notes therein, Rules for Interpretation thereof and General Explanatory Notes. The relevant entries pertaining to the two competing entries in the appeal i.e, Heading 8201 claimed by appellant and Heading 9027 as per the lower Authority's ruling, merit a reference. The same read as follows:
“SECTION XV
BASE METALS AND ARTICLES OF BASE METAL
Notes :
1. This Section does not cover :
……………………
(i) instruments or apparatus of Section XVIII5, including clock or watch springs;
……………………
Chapter 82
Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal
Notes :
1. Apart from blow lamps, portable forges, grinding wheels with
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and shovels
kg.
8201 30 00
–
Mattocks, picks, hoes and rakes
kg.
8201 40 00
–
Axes, bill hooks and similar hewing tools
kg.
8201 50 00
–
Secateurs and similar one-handed pruners and shears (including poultry shears)
kg.
8201 60 00
–
Hedge shears, two-handed pruning shears and similar two-handed shears
kg.
8201 90 00
–
Other hand tools of a kind used in agriculture, horticulture or forestry
kg.
SECTION XVIII
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CHECKING, PRECISION,
MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; CLOCKS AND WATCHES; MUSICAL INSTRUMENTS;
PARTS AND ACCESSORIES THEREOF
Chapter 90
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof
Notes :
1. This Chapter does not cover :
……………
2. Subject to Note 1 above, parts and accessories for machines, apparatus, instruments or articles of this Chapter are to be classified according to th
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uring or checking quantities of heat, sound or light (including exposure meters); microtomes
9027 10 00
–
Gas or smoke analysis apparatus
u
9027 20 00
–
Chromatographs and electrophoresis instruments
u
9027 30
–
Spectrometers, spectrophotometers and spectrographs using optical radiations (UV, visible, IR) :
9027 30 10
Spectrometers
u
9027 30 20
Spectrophotometers
u
9027 30 90
Other
u
9027 50
–
Other instruments and apparatus using optical radiations (UV, visible, IR) :
9027 50 10
Photometers
u
9027 50 20
Refractometers
u
9027 50 30
Polarimeters
u
9027 50 90
Other
u
9027 80
–
Other instruments and apparatus:
9027 80 10
Viscometers
u
9027 80 20
Calorimeters
u
9027 80 30
Instruments and apparatus for measuring the surface or interfocial tension of liquids
u
9027 80 40
Nuclear magnetic resonance instruments
u
9027 80 90
Other
u
9027 90
–
Microtomes; parts and accessories :
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provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by viltue of this rule), presented unassembled or disassembled.
(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to principles of rule 3.
3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(a) The heading wh
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ion.
4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin”.
[Rules 5, 6, General Notes and Additional Notes are not reproduced since not relevant]
13.1. First, we deal with classification of the Mridaparikshak Minilab. On considering the nature, functions, usage etc. of the said Minilab vis-d-vis Heading 8201 claimed by appellant, the following position emerges:
(i) Heading 8201 covers goods which are Hand-tools, of the types specifically enumerated thereunder i.e, 'Spades' to 'Timber-wedges' and “other tools of a kind used in agriculture, horticulture or forestry”. Admittedly and undisputedly, the Minilab does not fall under any of the specific enumerated items 'Spades' to 'Timber-wedges'.
(ii) The appellants' claim is that they fall under the phrase “other tools of a kind used in agriculture”, appearing in the Heading.
13.2. We find the above claim to be untenable, for t
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of the proviso to the notification would show that by resorting not only to the process of bleaching, dyeing, printing, shrink proofing, tentering, heat-setting, crease-resistant processing, but also to “any other process or any two or more of these processes”, the respondent would lose the benefit of the exemption. It is a well established principle that general terms following particular expressions take their colour and meaning as that of the preceding expressions, applying the principle of ejusdem generis rule, therefore, in construing the words “or any other process”, the import of the specific expressions will have to be kept in mind. It follows that the words “or any other process” would have to be understood in the same sense in which the process, including tentering, would be understood. Thus understood, a process akin to stentering/tentering would fall within the meaning of the proviso and, consequently, the benefit of the notification cannot be availed by the respondent.
Sh
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crease-resistant processing, specifically mentioned in the note.
Grasim Industries Ltd.
“10.In the background of what has been urged by the assessee it has to be further seen whether the principles of ejusdem generis have application. The rule is applicable when particular words pertaining to a class, category or genus are followed by general words. In such a case the general words are construed as limited to things of the same kind as those specified. The rule reflects an attempt to reconcile incompatibility between the specific and general words in view of the other rules of interpretation that all words in a statute are given effect if possible, that a statute is to be construed as a whole and that no words in a statute are presumed to be superfluous. The rule applies only when (1) the statute enumerates the specific words, (2) the subjects of enumeration constitute a class or category, (3) that class or category is not exhausted by the enumeration, (4) the general terms follow
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there being no further residual entry. Thus, it is clear that legislative intent is that only goods of the genus 'hand tools' are covered in the phrase “other tools of a kind…”, in particular and in the Heading 8201 in general.
(iii) In view of the above, the phrase “other tools of a kind…” appearing in Heading 8201 would not cover any goods other than hand tools. More pertinently, it would not cover the Mridaparikshak instrument / Minilab in question, which is admittedly an electronic instrument operated on electricity / battery /solar power, and is not even remotely in the nature of the various hand tools listed in the entry 8201.
14.1. The appellants had laid much emphasis on the aspect that the Minilab was used exclusively for agricultural purpose and hence to be classified under Heading 8201 as 'tools of a kind used in agriculture'. This reason, can have no bearing nor relevance in the given context where the classification under Heading 8201 is to be governed only by the r
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ntries in the Tariff, such as those above, as redundant. Clearly, such interpretation is impermissible.
15. In view of the above, we hold that the goods i.,e the Mridaparikshak Instrument / the Minilab are not classifiable under Heading 8201 as claimed by the appellants.
16.1. Coming to the question of classification of the Minilab under Heading 9027 as held by the Adv. Ruling Authority, we find as follows:
(i) Description against Heading 9027 reads as follows:
“Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light (including exposure meters); microtomes”.
(ii) The instruments / apparatus mentioned in the above description do not specifically include those used for either 'soil testing'
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y methods for available P, neutral 1 N ammonium acetate method of available K, DTPA extraction method for available Fe and Zn, and hot water soluble method for available B”.
(iv) The Manual further provides a detailed description as to the method and manner of usage of the instrument as also the various accessories, Reagents etc., for the purposes of testing the soil-samples; along with specific parameter-wise description of the procedures to be undertaken etc., which are all in the nature of chemical analysis of the samples to discern / determine the desired parameters. In fact, at various places, the Manual-description refers to and mentions the processes / procedures undertaken as “analysis”; some excerpts being as under:
(i) “Most Important: It may be noted by the user that for the analysis of Organic C, Available P, K, S, Zn, Fe, Mn, Cu, and B, the instrument has to be set at zero level with distilled water… This has to be separately done before every analysts”7
(ii) “1) Pl
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mical analysis” and hence rightly classifiable under Heading 9027.
17.1. The appellant's contentions against the classification of the Minilab under Heading 9027 as stated in their grounds of appeal, are that 'these are not instruments for checking quantities of heat, sound or light as treated by the Adv. Ruling authority' and further that 'it is neither a chemical or measuring equipment'. And during the hearing before us, it was contended that Heading 9027 is not applicable since it does not contain the phrase “soil-testing”.
17.2. We do not find merit in the above contentions. The mere non-appearance of phrase 'soil testing' in Heading 9027 is of no relevance. As per the clearly evident elements detailed above, the impugned Minilab is admittedly an instrument for scientific (physical / chemical) analysis of the soil. As such, it remains specifically covered in the Heading 9027, which applies to instruments or apparatus for physical / chemical analysis. In fact, during the hearing b
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, the Mridaparikshak instrument / Minilab falls within the specific phrase “instruments for physical or chemical analysis” used in Heading 9027. Hence, we find that this classification would be applicable under the primary criterion 'according to the terms of Headings' vide Rule I of the Interpretative Rules, mentioned earlier.
18.3. Notwithstanding the above, we find that Heading 9027 in the Tariff mentions the names of only some such instruments for physical / chemical analysis illustratively, as referred earlier. As such, the Adv. Ruling Authority was right in referring to the HSN Notes and in arriving at the conclusion basing on the specific mention therein of pH meter, Wet Chemical Analyser; which are used for the similar functions of measuring / determining the pH factor, inorganic / organic components etc., as done by the impugned Mridaparikshak / Minilab. It is a well-settled legal proposition that where the Tariff-Schedule is based upon and structured on the same pattern as t
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rect and tenable.
19. Inasmuch as the Mridaparikshak / Minilab is found to be classifiable under Heading 9027, the plea of appellants for classifying them under Heading 8201 remains further negated by Note I (h) to Section XV which precludes instruments/apparatus of Section XVIII (under which Chapter 90 falls) from being classified under Section XV, which includes Chapter 82.
20. In view of the above discussion, the first question for our determination is answered by holding that the goods viz., Mridaparikshak-MiniIab is rightly classifiable under Heading 9027 of the Tariff as held by the Adv. Ruling Authority and not under Heading 8201 as claimed by the appellant.
21.1. The next issue is the classification of Refill Reagents, which are admittedly chemicals / chemical substances – the composition of which is not disclosed by the appellants claiming the same to be a secret – and which are described only as 'Reagent 1' onwards to 'Reagent 42'. In the Operation Manual / Working Protoco
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Reagents under Heading 9027 – as held by the lower Authority – is concerned, we find as follows. The lower Authority's reasoning and findings are that Refilling Reagents are part of Soil Testing Minilab; hence, parts and accessories identifiable as being solely or principally for use with instruments / apparatus of Heading 9027 are also to be classified under Heading 9027. This is apparently by applying Note 2 (b) to Chapter 90 supra, though not expressly stated so in the impugned order.
23.2. The appellants have, either in the grounds of appeal or further submissions, not disputed either the finding of the lower Authority that the Refill Reagents are solely or principally for use with the Mridaparikshak Minilab falling under Heading 9027 nor as to the application of Note 2 (b) of Chapter 90, for determining the classification. As such and on this count alone, the decision in the impugned Order classifying the Refill Reagents under Heading 9027 merits to be upheld.
23.3. Notwithstand
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es (a) to (c), for classification of parts and accessories of the instruments/apparatus falling under the Chapter. Clause (a) is not applicable to Refill reagents, since these are not goods which by description / nature etc., fall under Chapters 84, 85, 90 or 91. Clause (b) speaks of parts and accessories, suitable for use solely or principally with a particular kind of machine.
(iv) The Refill reagents cannot fall to be considered as 'parts' of the Mridaparikshak instrument. However, the term 'accessory' has the meaning as “a person or thing that aids subordinately; an adjunct; appurtenance; accompaniment '12; “an object or device that is not essential in itself but that adds to the beauty, convenience or effectiveness of something else'; supplementary or secondary to something of greater or primary importance', 'additional' 13.
(v) The question arises whether the Refill Reagents being chemicals used / consumed in the procedures / tests conducted for soil-testing / analysis can be c
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) Ratio of the above decisions squarely applies in respect of the Refill Reagents in the instant case. The Refill Reagents, without which, as it appears in the given facts of the case, the Minilab cannot be used / put to function by the customers for conducting the required chemical analysis, falls to be considered as an accessory to the Minilab. Thus, it is evident in the facts of the case that the Refill Reagents are suitable for use solely and principally with the Mridaparikshak Minilab, rather it is the only use and none otherwise. Hence, classification of Refill Reagents would be squarely covered in terms of Note 2(b) to Chapter 90. The residuary clause (c) of Note 2 is therefore not relevant.
24. In view of the above, with regard to the second question for our determination, we hold that the Adv. Ruling Authority's decision of classifying Refill Reagents under Heading 9027 is correct and merits to be upheld.
25.1. The next question for determination is whether the exemption ent
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n mentioned i.e, “agricultural implements..”. In other words, the exemption is applicable to a sub-set from out of the broad category of “Hand tools…” covered in Heading 8201. Since the impugned goods do not fall in the Heading itself, the exemption given in respect of a part of the Heading would not be applicable to them.
25.3. The phrase “agricultural implements” is not defined in the Notification or the Act. However, in the given context of the Notification-entry mentioning a specific Tariff Heading against the description, the said phrase cannot have an extended / extrapolated meaning to cover any/all goods which do not fall under the said Heading itself, such as the impugned goods.
26. Accordingly, w.r.t. the third question for our determination we hold that the impugned goods are not covered by the entry SI.No. 137 in the exemption Notification as claimed by the appellant.
27.1. The appellant has cited various case laws in their grounds of appeal / further submissions; the b
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indayya Setty And Sons
Hon'ble High Court of Andhra Pradesh
Whether “vermicelli” popularly called “shevaya” is “maida” falling within entry 60 of First Schedule to the Andhra Pradesh General Sales Tax Act, 1957.
5.
Jaya Food Industries Pvt Ltd vs Commercial Tax Officer, Nampally Circle, Hyderabad = 1987 (8) TMI 439 – ANDHRA PRADESH HIGH COURT
Hon'ble High Court of Andhra Pradesh
Whether vermicelli manufactured and sold under the trade name “Bambino vermicelli” falls under entry 129A of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957.
6.
Godrej Agrovet Ltd vs Addl. Commissioner of Commercial Taxes, Bangalore 2011 (39) VST 20 Karn. = 2010 (8) TMI 852 – KARNATAKA HIGH COURT
Hon'ble Court Karnataka High of
Whether Di-calcium Phosphate is an Animal feed supplement and chargeable to Nil rate of tax under the First Schedule to the Act or liable to tax under Third Schedule.
7.
Vijay Ganesh Mill Stores, Vijayawada vs State of Andhra Pradesh
Hon'ble Sales Tax Ap
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biguity, the view favourable to the assessee is to be preferred'; 'that among different applicable entries the lower rate of tax has to be applied'; 'that the end-user test has to be considered for classification'. However, we find that the above principles were applied in the situations involving an ambiguity / doubt as to the classification / eligibility for exemption vis-d-vis the statutory provisions / entries. In the instant case, as per our discussions and findings detailed above, the coverage of the impugned goods under Heading 9027 and the non-applicability of Heading 8201 as per the Tariff-entry as also the non-eligibility to the exemption-entry, are clear, unambiguous and without any scope for doubt. Hence, in our view, the aforesaid principles are not applicable to the present case.
(iv) We may further mention that it is well-settled legal position that precedent decisions can have application / binding value only in respect of identical (and not merely similar) set of fact
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aving Dock co. Ltd. v. Horton (1951 AC 737 at p. 761), Lord Mac Dermot observed :
“The matter cannot, of course, be settled merely by treating the ipsissima vertra of Willes, J as though they were part of an Act of Parliament and applying the rules of interpretation appropriate thereto. This is not to detract from the great weight to be given to the language actually used by that most distinguished judge.”
12. In Home Office v. Dorset Yacht co. [1970 (2) All ER 294] Lord Reid said, “Lord Atkin's speech is not to be treated as if it was a statute definition. It will require qualification in new circumstances.” Megarry, J in (1971) 1 WLR 1062 observed:
“One must not, of course, construe even a reserved judgment of Russell L.J. as if it were an Act of Parliament.” And, in Herrington v. British Railways Board [1972 (2) WLR 537] Lord Morris said :
“There is always peril in treating the words of a speech or judgment as though they are words in a legislative enactment, and it is to be
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es else you will find yourself lost in thickets and branches. My plea is to keep the path to justice clear of obstructions which could impede it.”
28. In view of the above, we find that none of the case laws cited by the appellant are applicable to the matter on hand.
29. In sum and having regard to the above discussions and findings, we hold that the impugned goods are correctly classifiable under Heading 9027 of the Tariff; they are not classifiable under Heading 8201 ibid. Further the impugned goods are not eligible for the exemption vide entry Sl.No. 137 of the Notification No. 2/2017- Central Tax (Rate) dated 28-6-201 7. The appellants have not made out any case for interference with the Adv. Ruling Authority's ruling as above, which therefore merits to be upheld.
30. Accordingly, we pass the following
ORDER
The Advance Ruling pronounced vide TSAAR Order No. 02/2018 dated 30-052018 = 2018 (6) TMI 465 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA passed by the Telangana S
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5. Explanation (iv) further provides for application of the relevant Section / Chapter Notes, Rules for Interpretation of the Schedule and General Explanatory Notes for interpretation of the Notification. The Notification No.2/2017-Central Tax (Rate) dated 28-6-2017 is an exemption Notification also containing similar references /Explanation for application of the Customs Tariff for interpreting the entries therein.
3. Soil pH is a measure of the acidity or basicity (alkalinity) of a soil. pH is defined as the negative longrithm (base 10) of the activity of hydronium ions (H+) or, more precisely, H3O+aq) in a solution. Source: en.wikipedia.org.
4. As detailed in the Operations Manual / Working Protocol submitted by the appellant.
5. Chapter 90 containing the competing entry Heading 9027, falls under Section XVIII.
6. Second para under “Introduction” on page 3 of the Manual.
7. Page 20 of the Manual under the heading “3. Organic Carbon”.
8. Page 33 of the Manual under the heading
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