The court established that inconsistent classification of similar products by the Appellate Authority necessitates a reevaluation to ensure fair tax treatment.

ORDER :

Bhargav D. Karia, J.

1. Heard learned advocate Mr.Anand Nainawati for the petitioner and learned Assistant Government Pleader Mr.Raj Tanna for the respondent no.1 and learned advocate Ms.Hetvi Sancheti for respondent no.3.

2. By this petition under Article 227 of the Constitution of India, the petitioner has prayed for the following reliefs:

“(a) That this Hon'ble Court be pleased to issue a writ of mandamus or certiorari any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality thereof to quash and set aside the impugned ruling dated 08.03.2021 passed by the Ld. GAAAR read with the ruling dated 02.07.2020 passed by the Ld. GAAR;

(b) That this Hon’ble Court be pleased to issue a writ of mandamus or any other writ order or direction under Article 226 of the Constitution of India to determine the classification of the products in question “RhizoMyx” and “RhizoMyco” under Chapter Heading 3101 at Sr.No.182 of Schedule-I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 as "All goods i.e. animal or vegetable fertilisers or organic fertiliser"

(c) That pending the hearing and final disposal of this Petition, the Respondents by themselves, their officers, subordinates, servants and agents be restrained by an interim order and injunction of this Hon'ble Court from taking any steps or proceedings in pursuance of and/or in furtherance of and/or in implementation of advance ruling dated 02.07.2020 passed by the GAAR and impugned ruling dated 08.03.2021 passed by the GAAAR to the extent that they are adverse to the Petitioner;

(d) For any other ad interim relief as this Hon'ble Court may deem fit over and above the relief prayed for at clause (c) above;

(e) For costs of the Petition;

(f) For such further and other relief as the nature and circumstances of the case may warrant.”

3. The brief facts of the case are that the petitioner is engaged in supply of the products 'RhizoMyx' and 'Rhizo Myco since 2012. The Petitioner has been supplying the products, 'RhizoMyx' and 'Rhizo Myco', by classifying them under Chapter Heading 3002 of the First Schedule to the Customs Tariff Act, 1975 with the tax rate of 12% (6% CGST + 6% SGST) under Sr. No. 61 of Schedule II of the Rate Notification.

3.1. The products 'RhizoMyco' and 'RhizoMyx' are marketed by the Petitioner as a mycorrhizal biofertilizer designed to enhance the growth potential of crops. These products are uniquely formulated with endomycorrhizal fungal spores and other organic-based ingredients (including humic acids, cold water, kelp extracts, vitamins and other ingredients) to provide superior nutrient and water absorption properties to the plant, provide necessary root stimulating properties and to help plants cope with environmental stress. The constituting elements of the products along with their percent bandings are listed below:

3.2. Thus according to the petitioner products “RhizoMyco” and “RhizoMyx” are a mixture of various components which are helpful in increasing the productivity of the soil and crop.

3.3. The petitioner filed an application dated 13.07.2018 before the Gujarat Authority for Advance Ruling for Goods and Service Tax (GAAR) to seek an Advance Ruling on the question whether th