Rapigro Classified Under HSN 3808: GAAAR Agrees with GAAR

The appellant, M/s Jivagro Limited, is engaged in the manufacture, import and export wholesale and distribution of agrochemicals, biocontrol, Agri-Inputs and biostimulants, Rapigro Liquid and Rapigro Granules. As per the appellant, M/s Isagro was merged with M/s Jivagro Limited. Before this merger, M/s Isagro was classifying the product Rapigro under HSN 3507 of CETA ’85. But they believe that must be classified under CTH 3101/3105. The appellant filed an application before the Gujarat Authority for Advance Ruling (GAAR) asking for an advance ruling on the following questions:

“(i) Classification of Rapigro under the Customs Tariff Act, 1975;
(ii) Classification of Rapigro under the Central Goods & Services Tax Act, 2017;
(iii) Rate of tax payable on Rapigro.”

GAAR ruled that Rapigro is classifiable under HSN 3808 as a Plant Growth Regulator (PGR), attracting 18% GST (9% CGST + 9% SGST).

However, the appellant was not satisfied with this ruling and filed an appeal before the Gujarat Appellant Authority for Advance Ruling (GAAAR), raising the following arguments:

• Rapigro is is not a Plant Growth Regulator (PGR) and it is notified as fertiliser under FCO and Bio-Stimulant and Protein hydrolysates.
• Prior classification under HSN 3507 was incorrect, and the current classification should be under HSN 3101/3105.
• Product is not a separately chemically defined compound; hence, it cannot be classified under Chapter 38 (PGRs).

The appellant relied on the case of Vasu Pharmaceuticals and Leeds Kem.

The GAAAR agreed with the advance ruling of GAAR and rejected the appeal filed by the appellant, as they did not produce anything.