The Maharashtra Authority of Advance Ruling in an application filed by Alligo Agrovet Pvt Ltd held that Shyam Samruddhi derived from an organic source is an Organic Fertilizer classifiable under HSN 3105 liable to 5% GST.
The applicant is engaged in the manufacture of various Agro Chemicals claimed as Organic Fertilizers. The issue before the present authority is with respect to the determination of the correct classification of goods produced by the applicant. These are Autus, SJ Ninja, SJ-Eraser, Oprax, Telnar, VK’s Nemo and Stressout.
The applicant submits that the impugned goods contain Animal or Seaweed plant extract, Nitrogenous, Potasic Fertilizers and Micro Nutrients which helps in enhancing the immunity of plant against several diseases and are in the nature of organic fertilizers classifiable under HSN 3101 or 3105.
The Bench constituting of Hon’ble members B. Timothy and B.V. Borhade held that the above products are classifiable under HSN Code – 3808 under the head ‘Plant Growth Regulators’ and are liable to the rate of 18% under Notification Number 1 of 2017 – Central Tax (Rate) dated 28.06.2017 each respectively. Further, that the good Shyam Samruddhi is an organic fertilizer classifiable under HSN – 3105 and is liable to a rate of 5% as per Sl. Number 182D of Schedule I of Notification Number 1 of 2017 Central Tax (Rate) dated 28.06.2017.
The Hon’ble bench analyzed the characteristics of fertilizer, organic fertilizer, plant growth regulator, insecticides and pesticides and made a product by product examination of the same. It has been discussed that Plant Growth Regulators are either natural or synthetic compounds that are applied directly to a target plant to alter its life processes or its structure to improve quality, increase yields, etc and hence the product – Autus is in conformity with the characteristics of the heading, shall be classified as such.
On the contrary, the product ‘Shyam Samruddhi’ in absence of any growth regulator and since constitutes of plant nutrient N,P,K are derived from an organic source, classifiable under HSN – 3105 and liable to 5% GST. Further, SJ-Ninja and SJ-Eraser eradicating most common insect pest was held to satisfy attributes of an insecticide classifiable under HSN Heading 3808.
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