The Madhya Pradesh Authority of Advance Ruling (AAR) ruled that 5% GST payable on Epoxidized Soya bean Oil.
That Applicant, Dhanraj Organics Private Limited is a company registered under Companies Act 1956 and is engaged in manufacturing of Epoxidized Soya bean Oil. The product Epoxidized Soya bean Oil is a Chemically Modified Vegetable Oil. The Raw material Refined Soybean Oil is oxidized in a rector by the use of Oxidizing agent i.e. Hydrogen Peroxide in presence of a Catalyst. After such a process of oxidation etc. Soya-vegetable oil is oxidized under vacuum.
The applicant has sought the advance ruling on the issue whether the Epoxidised Soya bean Oil is rightly classifiable under tariff item 1518 and GST @5% is leviable as the said product is specifically covered under the entry no.90 of Schedule-I of Notification No. 1/2017-Central Tax (Rate) dated 28.07.2017. as amended from time to time.
On-the similar issue, in case of M/s Agarwal Industries Pvt. Ltd., the Andhra Pradesh Authority for Advance Ruling vide order dt.8/6/2018 observed that since the product under question is manufactured out of Vegetable fats/ oils and not from animal fats/ oils, therefore, the correct HSN Code of “Energy-G premium Oil” is HSN 1518 vide S. No. 90 of Schedule I of Notification dated 28-6-2017 and the applicable rate of tax is 5%. The Deputy Commissioner. Registrar. AAR, Andhra Pradesh vide letter No.AAR/09/21 dated 27.04.2021 informed that no appeal has been filed against the abovesaid order of AAR.
The Coram of Manoj Kumar Choubey and Virendra Kumar Jain ruled that the product epoxidized Soya Oil is a chemically modified soya bean oil and falls under chapter heading no.1518 and specifically covered under entry no.90 of Schedule-I of Notification No. 1/2017-Central Tax (Rate) dated 28.07.2017
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