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TMI Blog2019 (10) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... ation plants and/or rearing of all life forms of animals. Job Work is defined under Section 2(68) as any treatment or process undertaken by a person on goods belonging to another registered person. In the present case, the material received by the applicant from the principal manufacturer are subjected to certain processes and returned back to the Principal manufacturer. Thus. the activity carried out by the applicant falls under Heading 9988 and not under Heading 9986 as contended by the applicant. The applicant realizes job work charges on return of goods so manufactured by it. In such a scenario. the applicant (job worker) alone has the liability to pay any tax liable on the job work charges. Thus, the activity of job work being undertaken by the applicant Clearly falls under S.No. 26 (g) of the N/N. 11/2017- Central Tax (Rate) dated 28 06.217 (as amended) and thus attracts GST@ 5%. - AAR/GST/PB/007 - - - Dated:- 21-8-2019 - NAVDEEP BINDER AND PARUL GARG, MEMBER Present for applicant: Sh. Vinod Kumar, Partner Sh. Vishal Garg, CA. (An Appeal against this Order lies with the Appellate Authority in terms of Section 99 and Section 100 of the CGST Act, 2017 and Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce. the application of the applicant is eligible for a ruling by the Punjab State Advance Ruling Authority. V. SUBMISSIONS BY THE APPLICANT The applicant vide their application in Form GST ARA - 01 dated 19.04.2018 have. inter-alia. stated that they are engaged in manufacturing Cattle Feed and Poultry Feed on Job Work basis. The total raw material viz. Rice bran, Grains, Cakes, Molasses. De-Oiled Cakes etc. to be used in the manufacturing activity on job work is supplied by the Principal Manufacturer. The process undertaken by job worker is as under: Grinding and mixing of the raw material is performed in Grider Mixer, Thoroughly mixed Raw Materials are treated with dry steam from Boiler in steel conveyors, The steamed materials are palletized through pallet mill, After cooling, the finished goods i.e; end product is weighed filled in HDPE Bags and then supplied Both the end products i.e; Cattle Feed and Poultry Feed are Tax Free goods. The applicant has further submitted that as per Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, Support services to agriculture, forestry, fishing, animal husbandry are NIL rated. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the definition. it includes: (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule l, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. 4. Further. as per Section 2(68) of CGST Act. the term Job Work means as any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker shall be construed accordingly . 5. Further, Schedule II of CGST Act enumerates the activities which can be treated as Supply of Goods or Services. Para 3 of the Schedule states that Any treatment or process which is applied to another person s goods is a supply of services . 6. In the present case. the applicant undertakes process on goods belonging to the principal. the same is in the natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them as they grow - livestock rearing - Oxford Dictionary 9. Heading 9986 classifies Support services to agriculture, hunting, forestry, fishing, mining and utilities and sub-heading 998612 spells out the services relevant to Animal Husbandry Services : 998612: Animal husbandry services This service code includes sheep shearing and care and management of herds of farm animals: artificial insemination of farm animals; grading of eggs; cleaning of agricultural premises (hen houses. piggeries, etc.); accommodation services for pets (kennels): grooming and tattooing services for pets; training of pet animals; Farm animal husbandry services on inputs owned by others like operation of a farm animal production unit on a fee or contract basis This service code does not include: services provided by agronomists and agricultural economists, (998311) veterinary services for pets and other animals, (99835) training of guard dogs (998529) recreational riding services. (999652) training of Sport and entertainment animals (999662) 10. The Crucial term which determines the issue in hand, is intermediate production process as job work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9988 (Manufacturing services on physical inputs (goods) owned by others) (i) Services by way of job work in relation to- (a) (b) (g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (510f 1975), except dog and cat food put up for retail sale falling under tariff item 23091000 of the said Chapter; 2.5 - Heading 998817 further, specifically deals with prepared animal feeds manufacturing services. The relevant heading is reproduced below: Heading no. 9988 Manufacturing services on physical inputs (goods) owned by others Group 99881 Food, beverage and tobacco manufacturing services 998811 Meet processing services 998812 Fish processing services 998813 Fruit and Vegetables processing services ..... X X X X Extracts X X X X X X X X Extracts X X X X
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