In a decision, Chhattisgarh’s Authority for Advance Ruling ( AAR ) determined that the product known as “Waterproof Trellis support for climbing plants utilising bamboo and High-Density Polyethylene” is not exempt from the requirement.
The product, described as a “waterproof Trellis support for Climbing plants employing bamboo and High-Density Polyethylene,” was claimed to be an agricultural tool by the applicant, Bhavya Srishti Udyog Private Ltd. The products that fall under section 8201 of the Custom Tariff Act of 1975 and are related to horticulture or forestry are subject to a NIL GST rate.
The authority observed that the instant product is classified as Hand tools, such as spades, shovels, mattocks, picks, hoes or sand 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.
Further noted that there is no rationale in the opinion put forth by the applicant in as much as assuming but not acceding if the said interpretation of applicant is considered then even the wire fence used for a boundary in agricultural field would also qualify being termed as agricultural tool/ implements.
Moreover, the impugned product is purely a support made of bamboo for creeper vegetables/ crops. Thus concluded that the applicant is not eligible for exemption from tax on the said waterproof Trellis support for climbing plants using Bamboo and High-Density polyethylene.
The bench of Sonal K. Mishra and Rajesh Kumar Singh noted the classification of the said product comes under Section 11 of chapter 14 of Customs Tariff which covers Vegetable plaiting materials; vegetable products not elsewhere specified or included. Tariff item 14011000 covers “Bamboos” in its ambit and it is taxable under the tariff.
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