In re S.K. Aagrotechh (GST AAAR Karnataka)
Having concluded that Pooja Oil is classifiable under sub-heading 1518 00 40 of the Customs Tariff as inedible mixtures or preparations of vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or included, let us now determine the GST rate in terms of Notification No 01/2017 CT (R)/IT (R) dt 28.06.2017 as amended. The said Notifications specifies two different entries for tariff heading 1518 in Schedule 1 and Schedule II.
The GIST Rate Notification has divided the heading 15.18 of the Customs Tariff into two parts. Entry SI.No 90 of Schedule I covers only boiled, oxidised, dehydrated. sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modifiedvegetable oils and fats and its fractions. In other words, the entry SI.No 90 of Schedule I only pertains to vegetable oils which have been obtained by or subjected to the above processes. This entry includes both edible and other than edible grade of vegetable oils obtained by the above-mentioned processes. To this extent, we disagree with the findings of the AAR that the entry at SI.No 90 of Schedule I applies to vegetable oils which have been subjected to processes and the resultant product remains edible despite undergoing the aforementioned processes. Drawing support from the HSN Explanatory Notes, in our considered opinion, Pooja oil is not a boiled or oxidised or blown or dehydrated or sulphurised or polymerised or otherwise chemically modified oil. Therefore, we hold that Pooja oil is not covered under entry SI.No 90 of Schedule 1.
On the other hand, entry SI.No 27 of Schedule II covers boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified animal oils and animal fats and its fractions. The said entry No 27 also includes within its purview,inedible mixtures or preparations of animal or taxguru.in vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified of included. As already discussed earlier, the Pooja oil is an inedible mixture or preparation of different vegetable oils which is not elsewhere specified or included. Therefore, Pooja Oil is more specifically covered under entry SI.No 27 of Schedule 11 where the GST rate is 6% CGST/6% KGST/ 12% IGST as the case may
Having concluded thus, we do not find it necessary to go into the arguments of the Appellant that when a product is classifiable under two or more different tariff heads, the classification which is more beneficial to the assessee is to be adopted. This situation does not arise since the product Pooja oil is held by us to be classifiable only under Chapter subheading 1518 00 40.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, KARNATAKA
PROCEEDINGS
(Under Section 101 of the CGST Act, 2017 and the KGST Act, 2017)
At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017 and KGST Act, 2017) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding similar provisions under the KGST Act.
The present appeal has been filed under Section 100 of the CGST Act, 2017 and the KGST Act, 2017 by S.K. Aagrotechh, Survey No. 114, Gottigehalli Road, Kaggalalli, Kanakapura Taluk, Ramanagar District (hereinafter referred to as ‘Appellant’) against the Advance Ruling No KAR ADRG 49/2019 dated 18.09.2019 pronounced by the Karnataka Authority for Advance Ruling.
Brief facts of the case:
1. The Appellant is a partnership firm and is a wholesale dealer in edible oil. The Appellant also manufactures Pooja Oilwhich is primarily a mixture of rice bran oil, sesame oil (gingelly oil), coconut oil, castor oil and mahua oil. A small quantity of fragrance is also mixed only for giving fragrance.
2. The GST rate Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 specifies two different entries for tariff heading 1518.Entry number 90 of Schedule-I of the said notification (GST rate of 5%) covers all types of vegetable fats and oils which have undergone processes like boiling, oxidization, dehydration etc. This entry specifically excludes those oils falling under tariff head 1516. The relevant entry reads as under:
Schedule 1— 2.5%
