2022 (12) TMI 809 - AAAR - GST

Exemption from GST - sale of produces Distillery Wet Grain Soluble (DWGS) and Distillery Dry Grain Soluble (DDGS) - Cattle feed undertaken by the applicant - N/N. 102 of Notification No. 02/2017 -Central Tax (Rate) dated 28 June 2017 - Whether the appeal is filed in time? - HELD THAT - It is clarified in Circular No. 163/19/2021-GST Dated 6th October, 2021, that Brewers' spent grain (BSG), Dried distillers' grains with soluble DDGS and other such residues are classifiable under heading 2303, attracting GST at the rate of 5% (S. No. 104 of schedule I of notification No. 1/2017-Central Tax (Rate) dated 28.06.2017). The order passed by the lower authority is upheld - appeal disposed off.

Summary

Issues Involved:
1. Interpretation of GST taxability on the sale of distillery by-products as cattle feed.
2. Timeliness of filing an appeal against the Advance Ruling.
3. Consideration of end use in determining tax classification.
4. Legal validity of certificates and judgments cited in support of the appeal.
5. Applicability of Circular No. 163/19/2021-GST on the case.

Analysis:
1. The appeal concerns the taxability of distillery by-products, DWGS and DDGS, sold as cattle feed under GST. The lower authority classified these products under S.No. 104 of Notification No. 1/2017, taxable at 5%. The appellant argued for exemption under S.No. 102 of Notification No. 02/2017 based on end use. However, the Appellate Authority upheld the lower authority's classification, stating that specific entries override general ones, and end use alone cannot determine classification. The appellant's reliance on legal pronouncements and certificates was deemed unconvincing.

2. The appeal was filed within the prescribed time limit of 30 days from the communication of the Advance Ruling. The appellant received the order on 17.3.2022 and filed the appeal on 12.4.2022, meeting the deadline under Section 100(2) of the Act.

3. The Appellate Authority noted that the end use argument by the appellant was not tenable as the product's classification should be based on its origin as a by-product of distilling activities. The Circular No. 163/19/2021-GST clarified that products like DDGS are classified under heading 2303, attracting GST at 5%. The Authority upheld the lower authority's decision based on these considerations.

4. The certificates presented by the appellant to support their argument lacked legal sanctity and were rejected. Legal judgments cited were found to be distinguishable from the present case, weakening the appellant's position.

5. The Appellate Authority referenced Circular No. 163/19/2021-GST to clarify the classification and GST rates applicable to products like DDGS. The circular confirmed that such residues are classifiable under heading 2303, attracting GST at 5%. Based on this clarification, the lower authority's decision was upheld, and the appeal was disposed of accordingly.