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TMI Blog2018 (9) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... undnut 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. - TN/08/AAR/2018 - - - Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cattle feed Cake Form and groundnut oil cake. Additionally, a test report from the CSIR - Central Food Technological Research Institute, Mysore was also procured by the Applicant. The applicant has stated that there is a considerable difference in composition of the Applicant's cattle feed (in cake form) and that of groundnut oil cakes. 2.1 M/S. CPR Mill has stated that as per the proceedings of the Authority for Clarification and Advance Ruling of the Commercial Taxes Department, Government of TamilNadu (in its proceedings dated 02.06.2017 in A.C.A.A.R. No. 54/2016-17), clarified that Aquatic feed/ Animal feeds are not liable to tax vide Entry No.5 of Part B of the Fourth Schedule to TNVAT Act, 2006 with effect 01.01.2007 and it was also clarified that they are not entitled to claim input tax credit of the tax paid on the purchase of raw materials as per Section 19(5) of the TNVAT Act, 2006. M/S. CPR Mill has further stated that under the CGST Act, as per Section 9 of the Central Goods and Services Tax Act, 2017, oil cakes are classified under Chapter Heading/sub-heading/Tariff Item - 2305 liable to be taxed at the rate of 2.5% falling under Schedule I vide Notification No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Profit per kg ₹ 0.27 The Applicant has stated that though there is physical similarity between groundnut oil cake and the product they sell, both are different as they add broken rice, jiggery, salt and water to groundnut oil cake after processing, to make the final product. 5. The issue before us is to determine the classification of - Cattle Feed in Cake form and as to whether the same is exempted. To be precise, the question to be answered is whether the product is classifiable under Ch. 2305 or under Ch. 2309. In terms of explanation (iii) and (iv) to Notification No. 1/2017 - Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, subheading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. As per Harmonised System of Nomenclature Explanatory Notes 2017, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts obtained from vegetable materials. those which have been treated to such an extent that the characteristic cellular structure of the original vegetable material is no longer recognisable under a microscope. (II) OTHER PREPARATIONS (A) PREPARATIONS DESIGNED TO PROVIDE THE WITH ALL THE NUTRIENT ELE MENTS REQUIRED TO ENSURE A RATIONAL BALANCED DAILY DIET (COMPLETE FEEDS) The characteristic feature of these preparations is that they contain products from each of the three groups of nutrients described below: (2) Body-building protein-rich nutrients or minerals. Unlike energy nutrients, these nutrients are not burned up by the animal organism but contribute to the formation of animal tissues and of the various animal products (milk, eggs, etc), They consist mainly of proteins or minerls. Examples of the protein-rich substances used for this purpose are seeds of leguminous vegetables, brewing dregs oil-cake, dairy by-products. The minerals serve mainly for building up bones and, in the case of poultry, making egg-shells. The most commonly used contain phosphorus, chlorine, sodium, potassium, iron iodine, etc. (C) PREPARATIONS FOR USE IN MAKING T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rements 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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