9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 441 - AAR - GSTClassification of goods - Preparation of a kind used in Animal Feeding, Bio Processed Meal - whether falls under HS Code 23099090 or otherwise? - rate of GST - Applicability of Notification 02/2017-CT (Rate) dated 28.06.2017 - HELD THAT - The Chapter heading 23099090 is exclusively meant for animal feed. It is noted that the applicant has not provided any evidence to prove that the said product Bio Processed Meal is meant for animal feed. We find that the applicant is renowned manufacturer of soya based products, both for general public, for animal fee as well as for industrial use. In such a situation, a critical analysis is required to establish that the said product is meant only for animal feed - there are no evidences in support of the applicant s claim that the said product falls under Chapter heading 23099090 . The applicants withdrawn of the comment that and not fit for human consumption , further substantiates our contention. As the applicant has failed to submit any evidence to support their claim of Chapter heading 23099090 for their product, and therefore the applicant is not entitled to claim Nil rate of duty under as per Notification 02/2017-CT(Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act.
Issues Involved:
1. Classification of the product "Preparation of a kind used in Animal Feeding - Bio Processed Meal." 2. Applicability of GST rate as per Notification 02/2017-CT (Rate) dated 28.06.2017. Detailed Analysis: Issue 1: Classification of the Product 7.1 The applicant, engaged in the manufacturing and export of various soya processed foods, sought confirmation of the classification of their product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" under HS Code 23099090. The product is derived from soybean meal through a fermentation process involving bacteria/enzymes, resulting in changes such as reduced anti-nutritional factors and increased lactic acid. 7.2 The applicant argued that the product is meant exclusively for animal feed, highlighting its protein content and fermentation process that makes it unsuitable for human consumption. They cited Notification 02/2017-CT (Rate) dated 28.06.2017, claiming that their product falls under the exempted category for animal feed. 7.3 The applicant acknowledged a typographical error in their initial submission, correcting the protein content to "up to 52%," removing the statement "and not fit for human consumption." 7.4 The Authority noted that the applicant is a renowned manufacturer of various soya-based products for general public consumption, animal feed, and industrial use. A critical analysis was required to establish that the product is meant solely for animal feed. 7.5 The chapter note for heading 2309 includes products used in animal feeding obtained by processing vegetable or animal materials to such an extent that they lose the essential characteristics of the original material. The applicant claimed classification under HSN Code 23099090, which is meant for animal feed and attracts Nil rate of GST. 7.6 The Authority derived that the chapter heading 23099090 is exclusively for animal feed but noted the lack of evidence from the applicant to prove that the "Bio Processed Meal" is meant solely for animal feed. 7.7 The Authority emphasized the applicant's withdrawal of the statement "and not fit for human consumption," which further substantiated the lack of evidence supporting their claim. 7.8 Consequently, the Authority concluded that the applicant failed to provide sufficient evidence to support their claim that the product falls under chapter heading 23099090 and is therefore not entitled to the Nil rate of GST as per Notification 02/2017-CT (Rate) dated 28.06.2017. Issue 2: Applicability of GST Rate8. RULING The Authority ruled that the product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" is not entitled to classify under HS Code 23099090 and therefore not entitled to the benefit of Notification No. 02/2017-CT (Rate) dated 28.06.2017 and the corresponding notification issued under the MPGST Act. This ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104(1) of the GST Act.
|
