Classification of goods— The present appeal has been filed against the Advance ruling order passed by the authority for Advance Ruling Uttarakhand.

In the instant case, applicant had sought an Advance Ruling on “Recommendation on the MN Code and applicable tax rate to be used under GST or their product i.e. AMI (Anaerobic Microbial Inoculums).” 

The lower authority ruled that:

Anaerobic Microbial Inoculurns (AMI) will be classified under chapter sub-heading 31010099 of the heading 3101 of the GST Tariff and accordingly, the supply of these products will attract GST @ 5% as on date.

The department has sought relief from the Appellate Authority for Advance Ruling, Uttarakhand, in the following terms:-

(i) Setting aside/modifying the impugned Advance Ruling passed by the Advance Ruling Authority (Uttarakhand) which classifies “Anaerobic Microbial Inoculums (AMI)” under chapter sub-heading 31010099 of the heading 3101 of the GST Tariff attracting GST @ 5% as on date.”

(ii) Passing necessary order holding that the AMI is classifiable under 'other enzymes of microbial origin' other' falling under chapter sub-heading 35079069 of heading 3507 in GST Tariff heading and supply of these products will attract GST @ 18 % as on date or pass any other order as deemed appropriate in the matter.

The point of contention is the correct classification of 'Anaerobic Microbial Inoculum' (hereinafter referred to as 'AMI') and the applicable GST rate. We find that the manufacturers, in their application before the AAR, had contended that one of the uses of their said product i.e. AMI was as organic manure.

Held that— This authority hold that Anaerobic Microbial lnoculum (AMI) is to be classified under GST Tariff heading No. 3002 (Sub heading 30029030) on which the applicable rate of GST is 12% (6% CGST+ 6% SGST). The Ruling no. 18/2018-19 dated 06.02.2019 passed by AAR, Uttarakhand is accordingly set aside and modified in above terms.