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TMI Blog2018 (12) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... iption of goods as animal feed, supplement, concentrate and additives. These imported goods alone are eligible to avail the benefit of tax exemption under the GST ACT. The description of goods against chapter Heading 2835 as mentioned at Sr. No. 105 of exemption notification 2/2017 Integrated Tax (Rate) dated 28/6/2017 covers only Di calcium Phosphate (DCP) of animal feed grade confirming to IS specification No. 5470:2002 - As such applicant product Mono calcium phosphate is not covered by the scope of exemption notification No. 2/2017-Integrated Tax (Rate). The products referred by the applicant in the application will not be covered under Entry- 102 but would be covered under chapters like 28 and 29. Those chapters are related to Organic and inorganic chemicals. Chapter 28 and 29 are not covered under exemption notification no 2/2017 date .28.6.2017 except the HSN Code of 2835. Ruling:- The products referred under application are not covered under entry 102 of the notification 2/2017-lntegrated Tax (Rate) dated 28th June, 2017, except Di Calcium phosphate(28352610) of animal feed grade, which is covered under Entry No. 105 of Notification No. 02/2017-(lntegrated Tax) (Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 28th June, 2017 under HSN codes 2301, 2302, 2308, 2309. However, we are facing some ambiguity in correct classification of our products. In our view it shall be covered under the aforesaid HSN codes and effectively the products will be exempted. However, due to different technical description of the products, there can be another school of thought and the tax may be levied at different rates, by revenue authorities on the said products. STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED The commodities namely DL Methonine, Bicarbonate, Phytase, Betaine, Monodicalcium, Trytophane, UT Vit 50, Threonine, Lysine and Creamino are feed supplements for consumptions of poultry only and are not put to any other use. Entries in the First Schedule to the Act are enactment of the legislature and the State Government which is a sub-ordinate legislative body cannot take away the exemption granted by law by issuance of a notification. Copy of the judgement of the Hon ble High Court of Madhya Pradesh in the case of Munnalal Agarwal and Another Vs State of Madhya Pradesh and Another reported in (2006) 148 STC 388 = 2006 (3) TMI 696 - MADHYA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iption that only those animal feed and feed supplements that are named therein are to be treated as covered by this HSN codes and those not named therein are to be excluded from the above HSN codes. A Feed supplement is a commodity that supplements animal feed. Also it can be noted from import documents that the products are imported and commercially traded as animal feed and feed supplements. The certificates issued by various companies clearly state that the aforementioned products are used as animal feed and feed supplements and these are not for medicinal use or human consumption. The certificates issued by quality control department of following above said companies are submitted on record. In the case of Commissioner of Commercial Taxes, Uttar Pradesh Vs Ram Chandra Asha Ram, reported in (2001) 123 STC 415 = 2000 (3) TMI 975 - SUPREME COURT OF INDIA , the Hon ble Supreme Court of India has held that damaged wheat unfit for human consumption and meant for use after processing as food for cattle is classifiable as cattle fodder . Applying the ratio of the said ruling of the Apex Court the products in which the applicant deals are meant for use as animal feed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that these imported products are to be used in poultry feed supplements. The NOC issued by Government of India has specific restriction that before releasing the consignment by the port office, each container /drum of these products shall be labeled as Animal Feed Supplement Only Not For Medicinal Use . We urge you to please take above facts on record and provide us the clarity on classification of our products under GST regime. In addition to submissions made earlier, applicant also intends to submit the following: We Uttara Impex Private Limited ( UIPL or Company or Applicant or We ) holding GSTIN 27AABCU0589J120, mainly engaged in trading of various poultry feed products have filed above mentioned application for advance ruling. In the course of its business the products namely DL Methonine, Bicarbonate, Phytase, Betaine, Monodicalcium, Tryptophan, UT Vit 50, Threonine, Lysine and Creamino are imported by us. The said products are feed supplements for consumptions as poultry feed only and are not capable of being used for any other use. With respect of above products, the Company has made an application for obtaining advance ruling under section 96 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acid and used in protein synthesis. Lysine is a limiting and essential amino acid in poultry so need to supply through feed as feed supplement to meet standard requirement of birds for their body maintenance and egg/meat production. 4. Betaine (Feed Grade) Betaine To recycles the Homocysteine (NRC, 1994) Betaine act as osmolyte and maintains acid-base balance. It is used in poultry feed to avoid environmental stress. 5. Mono calcium Phosphate (Feed Grade) Calcium and Phosphorus To shell formation and bone growth. MCP used as source of calcium and phosphorus to meet the requirement of poultry birds in poultry feed. Poultry birds require calcium and phosphorus for egg shell formation and bone development so need to give more supplements through feed. While formulating feed formula, need to maintain Calcium: Phosphorus ratio to get desired result. 6. L-Tryptophan (Feed Grade) Tryptophan Essential Amino acid and used in protein synthesis. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NCE RULING - CLASSIFICATION OF GOODS. UTTRA IMPEX PRIVATE LTD is engaged in trading of various poultry feed products But company is facing some ambiguity in correct classification of Products (which are those products is not specified in question). In companies view products shall be covered under the HSN CODES 2301, 2302, 2308, 2309 AND effectively products will be exempted. However due to technical description of the products, there can be another school of thought and the tax may be levied at different rates by revenue authorities on the said products. SUBMISSION AND VIEW OF JURISDICTIONAL OFFICER-- From the reading of application/ANNEXTURES submitted by the dealer, it is observed that; 1) The dealer is trading in Poultry feed products which are covered by CGST notification No. 2/2017. On which whole of central tax is exempted. The relevant entry is as follows: Sr.No. Chapter Heading Description of goods. 102 2303, 2304, 2305, 2306, 2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, including grass, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able under HSN NO 2930/2922/3004 CANNOT BE CLASSIFIED AS POULTRY FEED. 5) The dealer s contention is not tenable. There are specific HSN codes and specific tax Rate entries for all these products. The products which are mentioned in the above table are not poultry feed and shown under separate entry which are taxed accordingly. Simply due to the reason of not for human consumption or not of food grade quality, these products cannot be classified under POULTRY FEED and cannot be exempted from GST. 04. HEARING The case was scheduled for 27.06.2018 for Preliminary hearing, Sh. Bhadresh Vyas, Advocate along with Sh. Nagesh Jadhav, Advocate, Sh. Milind Phatak, G.M. Accounts and Sh. Sharad Kumawat, PGM Operations and Sh. Rushabh Gondha, C.A. appeared and requested for admission of application as per details in their application. During hearing Jurisdictional Officer Sh. Prakash Pote, Commr. Of S.T. (E-701), Pune appeared and made written submissions. The application was admitted and called for final hearing on 25.07.2018, Sh. Bhadresh Vyas, Advocate along with Sh. Milind Phatak, G.M. Accounts and Sh. Sharad Kumawat, PGM Operations and Sh. Rushabh Gondha, C.A. and Sh. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tives are not defined in the statute or in the notification issued under the Act. As such we may refer the Wikipedia or dictionary to understand these expressions: Definition of feed - as per dictionary to furnish something essential to the development, sustenance, maintenance, or operation of reading feeds the mind CAMBRIDGE DICTIONARY to give food to a person, group, or animal As per WIKIPEDIA Animal feed Animal feed is food given to domestic animals in the course of animal husbandry. There are two basic types: fodder and forage. Used alone, the word feed more often refers to fodder. Fodder Fodder refers particularly to foods or forages given to the animals (including plants cut and carried to them), rather than that which they forage for themselves. It includes hay, straw, silage, compressed and pelleted feeds, oils and mixed rations, and sprouted grains and legumes. Wikipedia, the free Encyclopedia Forage Forage is plant material (mainly plant leaves and stems) eaten by grazing livestock. SUPPLEMENT CAMRIDGE ENGLISH DICTIONARY Something that is added to something else in order to imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve is a food supplement for farm animal that cannot get enough nutrients from regular meals. Therefore there are large number of products that are added to feed and which are capable of providing nutrient required for animal based upon the nature of husbandry such as meat, milk, egg etc. Further we find that entry 102 of the exemption notification is not open ended. It cover those goods that are falling under chapter Heading 2301, 2302,2304,2305,2306,2308 and 2309 and which satisfy the description of goods as animal feed, supplement, concentrate and additives. These imported goods alone are eligible to avail the benefit of tax exemption under the GST ACT. It is therefore imperative to examine in detail chapter 23 of the CET - We find that Chapter 23 is related to the Residual and Waste from the food Industries prepared Animal fodder and therefore goods classifiable under the tariff codes as stated above are only covered and eligible for exemption benefit under entry no. 102 of the exemption notification mentioned above. Thus the benefit under Entry No. 102 is restricted as above:- We find that the details of tariff code (HSN) and its description as per tariff are as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CEREALS OR OF LEGUMINOU S PLANT 2302 BRAN, SHARPS AND OTHER RESIDUES, WHETHER OR NOT IN THE FORM OF PELLETS, DERIVED FROM THE SIFTING, MILLING OR OTHER WORKING OF CEREALS OR OF LEGUMINOUS PLANTS 230210 - Of maize (corn) : 23021010 --- Maize bran 23021090 --- Other 23023000 - Of wheat 23024000 - Of other cereals 23025000 - Of leguminous plants 2304 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya bean oil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Of linseed : 23062010 --- Oil-cake and oil-cake meal, expeller variety 23062020 --- Oil-cake and oil-cake meal, solvent extracted (defatted) variety 23062090 --- Other Further applicant as per instructions during the course of proceedings had made submission with respect to each of his products such as Name of supplier, origin, process under taken by the supplier and catalogue. On the basis of above, it is evident from the description of animal feeds that only those products that merit classification in the corresponding to HSN code as per details above are eligible for exemption from payment of GST vide entry 102 of the exemption notification. On perusal of chapter 28 29 of the Customs Tariff Act we find that goods covered therein are Organic and in organic chemicals and further we find that the products requested for classification in ARA are squarely covered by c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28352620 --- Calcium tribasic phosphate 28352690 --- Other 283529 -- Other : 28352910 --- Magnesium phosphate, monobasic 28352920 --- Magnesium phosphate, dibasic 28352930 --- Magnesium phosphate, tribasic 28352940 --- Sodium hexametaphosphate 28352990 --- Other - Polyphosphates : 28353100 -- Sodium triphosphate (sodium tripoly-phosphate) 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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