GST Classification of Rice Husk Board: AAAR Remand Matter for Adjudication on Record of New Evidence [Read Order]

The Gujarat Appellate Authority for Advance Ruling has set aside a classification ruling and has remitted the case back to the lower authority for fresh adjudication. This is in light of the new documentary evidence and records furnished by the appellant for the first time during the appellate proceedings.

The appellant is a Morbi-based manufacturer who had initially approached the Authority for Advance Ruling (AAR) with a query on the classification of its products' rice husk board under the HSN. The AAR had passed its ruling on March 21, 2025.

However, the appellant was not satisfied with the classification and in response it preferred an appeal with the AAAR. During the personal hearing in February 2026, the appellant furnished various fresh records and materials claiming them to be vital for the determination of tax liability.

The appellant had stated that the additional records would help in achieving clarity regarding the nature of the products. It was stated that a proper judgment would only be achieved after considering the new evidence that had come to light.

The Revenue had admitted the statement of the appellant but stated that since the records were new, a factual verification of the evidence was necessary. However, factual verification of evidence was only conducted in the original authority.

The Appellate Bench consisted of Ms. Arti Kanwar (Member SGST) and Ms. Rimjhim Pandey (Member CGST) stated that the interest of justice would call for a fresh hearing. It also stated that "the material produced for the first time needs to be verified for its factual accuracy and relevance to the issue in question."

The AAAR quashed the original judgment and directed the AAR to rehear the case. It was stated that the lower authority would have to consider the new records presented by the appellant and give a proper hearing before arriving at a judgment.

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