Case Law Details
In re Brindavan Agrotech Private Limited (GST AAAR Chhattisgarh)
The case of Brindavan Agrotech Private Limited v. GST AAAR Chhattisgarh delves into the classification of Fortified Rice Kernels (FRK) under GST regulations. This article provides a comprehensive analysis of the Authority for Advance Ruling’s (AAR) decision and the subsequent appeal process.
The discussion revolves around Chapter 11 of the Customs Tariff Act, which covers products of the milling industry, including rice. FRK, despite its resemblance to rice, undergoes additional processing involving fortification with vitamins and minerals. The AAR initially classified FRK under Chapter 19 due to this processing, supported by relevant notifications like No. 39/2017-Central Tax (Rate), amended by No. 11/2021.
The appellate authority’s decision was based on the interpretation of statutory guidelines and notifications. They emphasized that FRK’s processing steps extend beyond those allowable under Chapter 11, justifying its classification under Chapter 19, specifically 1904 90 00 of the Customs Tariff Act. This classification aligns FRK with products “otherwise prepared” under Note 4 of Chapter 19, distinct from traditional rice products governed by Chapter 11.
In conclusion, the appellate authority upheld the AAR’s ruling, affirming FRK’s classification under Chapter 19.
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