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2018 (9) TMI 1336 - AAR - GSTClassification of goods - Exemption under GST Act - Cattle Feed in Cake form - Whether the product is classifiable under Ch. 2305 or under Ch. 2309? Held that - The product is not merely groundnut oil cake/residue but is manufactured by combining groundnut oil cake with broken rice, jaggery, salt and water and leaving the mixture for condensing itself into solid form and finally steamed. Further, the applicant states that the product is meant for domestic animals or birds as an essential raise for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes such as re-production, for production of milk, eggs, meat, wool or feathers and in the case of animals, also for efficient output of work. The product in hand, the Cattle feed is manufactured using Groundnut oil cake as a raw material along with other raw materials. Further, as per the test reports, the content of ash, protein, salt, fat, moisture, calcium, phosphorous etc in a sample of groundnut oil cake vary in percentage from a sample of the product as furnished by the applicant in the test reports furnished by them. Also, from the invoices raised by them the product is identified as Cattle feed and not as groundnut oil cake . By applying the General rules for interpretation of Customs Tariff as applicable to GST Tariff, the product in hand is correctly classifiable under Chapter Heading 2309 of the GST Tariff as Preparation of a kind used in Animal Feeding - Compounded animal feed, 2309 90 10. The same is exempted in case of intra-state supplies vide sl.no. 102 of Notification No.2/2017-Central Tax(Rate) dated 28th June 2017 as amended and Sl.No. 102 of Notification. Ruling - The product Cattle feed in cake form manufactured by the Applicant is classifiable under Chapter Heading 23099010 and stands exempted as per vide Sl.No. 102 of Notification No. 2/2017-Central Tax(Rate) dated 28th June 2017 as amended and Sl.No. 102 of Notification. No.II(2)/CTR/532(d-5)/2017 dated 29th June 2017 as amended and in case of interstate supplies vide Sl.No.102 of Notification No. 2/2017-lntegrated Tax(Rate) dated 28th June 2017 as amended.
Issues Involved:
1. Classification of "Cattle Feed in Cake Form." 2. Availability of exemption under the GST Act. Detailed Analysis: 1. Classification of "Cattle Feed in Cake Form": The applicant, M/s. CPR Mill, engaged in manufacturing "Cattle Feed in Cake Form," sought the classification of their product under the SGST Act and CGST Act. The product is made from groundnut oil cake mixed with husked rice, broken rice, jaggery, salt, and water, which is then processed into a solid form. The applicant provided various documents, including test reports and invoices, to support their claim that their product is different from groundnut oil cake alone. The issue was to determine whether the product should be classified under Chapter Heading 2305 or 2309. According to the Harmonised System of Nomenclature Explanatory Notes 2017, Chapter 23 covers products used in animal feeding. Heading 2305 includes oil-cake and other solid residues from the extraction of groundnut oil, while Heading 2309 includes preparations used in animal feeding that have lost the essential characteristics of the original material. The Authority examined the manufacturing process and the composition of the product. It was determined that the product is not merely groundnut oil cake but a compounded feed made by adding other ingredients, thus losing the essential characteristics of the original material. Therefore, the product was classified under Chapter Heading 2309 as "Preparation of a kind used in Animal Feeding." 2. Availability of Exemption under the GST Act: The applicant referred to various notifications under the CGST Act and SGST Act to claim exemption for their product. Specifically, they cited Notification No. 2/2017-Central Tax (Rate) and Notification No. 2/2017-Integrated Tax (Rate), which exempt certain goods from GST. The Authority confirmed that the product "Cattle Feed in Cake Form" falls under Chapter Heading 2309 and is exempt from GST as per the cited notifications. The product is listed under Sl.No. 102 of Notification No. 2/2017-Central Tax (Rate) and its corresponding notifications for intra-state and inter-state supplies. Ruling: The product "Cattle Feed in Cake Form" manufactured by the applicant is classified under Chapter Heading 23099010 and is exempt from GST as per Sl.No. 102 of Notification No. 2/2017-Central Tax (Rate) dated 28th June 2017 and its corresponding notifications for intra-state and inter-state supplies.
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