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TMI Blog2020 (7) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... Feeding - Bio Processed Meal will only be used for animal feeding and not for in other purpose. The said product i.e. Bio Processed Meal is only for specific use of Animal Feed, it is clear to us that the finished product being manufactured by the applicant will only be used for animal feeding and not for any other purpose and thus it should fall under chapter heading 23099090 - Serial No. 102 of Notification 2/2017-CT (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act speaks that the goods Aquatic feed including shrimp feed and prawn feed. poultry feed cattle feed, including grass, hay straw, supplement husk of pulses, concentrates additives, wheat bran de-oiled cake falling under chapter heading 2302, 2304, 2305, 2306, 2308, 2309 are exempted from payment of GST. The applicant is eligible to avail exemption on their finished products Preparation of a kind used in Animal Feeding - Bio Processed Meal from payment of GST under Notification 2/2017-CT (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act. - Case No. 17, Rectification Order of Order No. 01/2020 - - - Dated:- 28-2-2020 - MANOJ KUMAR CHOUBEY AND VI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he thickness of material layer. During the fermentation process agitation of material may be needed according to the process design. After the fermentation process the material is discharged and collected by a belt conveyor to the drying section. In the conveying process, some material may be fall off the conveyor and needs to be cleaned manually. 3.3 The fermented Soybean meal is then pre-dried by a tube bundle dryer to around 20-25% moisture content and then enters live drying tower for further drying at relatively low temperature. The retention time inside the drying tower can be adjusted by adjusting the thickness of the material deck in each tray of the drying tower. The hot air in the drying tower is utilized repeated in each layer and then achieves energy efficiency and maintains desirable colour of the finished product. 3.4 The dried meal is then transported through cold air transfer to pulveriser for grinding to 1mm size and is finally transported through pneumatic transfer to finished product buffer tank and then for measurement and packing. 3.5 The end product will be sold for use as Aquatic feed including shrimp feed, poultry feed, Cattle feed Pig feed in dom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of GST Tariff attracts nil rate of GST. 3.9 The Appellant has also cited that explanatory Note to Heading 23.09 applies, mutalis mulandis , to this heading. 23.09 - Preparations of a kind used in animal feeding. 2309.10 - Dog or cat food, put up for retail sale 2309.90 - Other This heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed : (1) to provide the animal with a rational and balanced daily diet (complete feed); (2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed): or (3) for use in making complete or supplementary feeds. As per The Explanatory Note the product preparation of a kind used in animal feeding bio processed meal (SOYPRO) is classifiable under sub heading 23099090. 3.10 The Appellant has cited the following case laws in support of their case: (a) As per decision of AAR in the case of Natio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant. has appeared for Personal Hearing and reiterated the points mentioned in their written submission dated 26.07.2019, 14.10.2019 and 18.11.2019. 7. Discussion and finding portion in the order dated 02.01.2020 reads as under:- 7.1 We have carefully considered he submissions made by the applicant in the application, the pleadings on behalf of the Applicant made during the course of personal hearing. We find that the issue raised in the application is squarely covered under Section 97(2)(a)/(b) of the GST Act, 2017 being a matter related to classification of the product, being produced by the applicant and applicability of a cited Notification. The applicant have complied with the all the requirements for filing this application as laid down under the law. We therefore admit the application for consideration on merits. 7.2 Going through the application of the party, it is punt, that the applicant has sought confirmation of classification of their product to whom they term it Preparation of a kind used in Animal Feeding Rio Processed Meal- Jailing under HS Code 23099090. Further it is noted that the main raw material for the said preparation is Meal of Soyabe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they have lost the essential characteristic of the original material, other than vegetable waste, vegetable residues and by products of the such processing. Further the tariff heading 23099090 is detailed as under : 23.09 Preparations of a kind used in animal feeding, 2309.10 Dog or cat food, put up for retail sale 2309.90 Others 23099010 Compounded animal feed 23099020 Concentrates for compound animal feed Feed for fish (prawn etc.) 23099031 Prawn and shrimps feed 23099032 Fish meal in powdered form 23099039 Others 23099090 Others Further, the notification 02/2017-C T(Rate) dated 28.06,2017 and corresponding notification issued under MPGST Act has exempted infra-state supplies of goods, the description of which is specified in column (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Madhya Pradesh Goods and Services Tax Act, 2017) 1. 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 for the benefit of Notification No.02/2017-CT(Rate) dated 28.06.17 and corresponding notification issued under MPGST Act. 2. 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. 9. Submission of applicant under Section 102 of CGST Act, 2017 and Record of personal hearing dated 27.02.2020. The applicant submitted application dated 28/29.01.2020 dated 10.02.2020 under Section 102 of CGST Act. 2017 pointing out the error apparent on face of the record for amendment of the order No. 01/2020 dated 02.01.2020 = 2020 (3) TMI 441 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH . Shri Ravi Shankar Raichoudhary Advocate of the applicant, has appeared for Personal Hearing on 27.02.2020 and reiterated the points mentioned in their further submission dated 28/29.01.2020 and 10.02.2020. 10. Error as apparent from the face of the record being pointed out by the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Jurisdictional Court or of the Supreme Court can be said to be a mistake apparent from record which could be rectified under Section 254(2) of Income Tax Act, 1961. 10.1 In terms of the Section 102 of CGST Act, 2017, the applicant requests authority of advance ruling to amend the order passed under Section 98 of the CGST Act, 2017 as following error are apparent in the order delivered by authority of advance ruling. (a) The authority has taken view that the applicant has replaced 52% in place of 50% and removed the part and not fit for human consumption in their additional submission on 18.11.19 from the line The protein content of the feed grade is less than 50% and not fit for human consumption as mentioned in 15(f) of original application. (b) In this regard the complete text of 15 (1) as mentioned in the original application is reproduced below: Scientific base to prove the fact that the end product will he used only for PREPARATION OF A KIND USED IN ANIMAL FEEDING - BIOPROCESSED MEAL - The raw material for the preparation of Bio-Processed meal is soya bean meal feed grade falling under HS code 23040030. The protein content of the feed grad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be used in the manufacture of finished products. The authority for advance ruling by mistake took this plea that the words the protein content of the feed grade is less than 52% were meant for finished products whereas a continuous reading of Para 15(f) The raw material for the preparation of bio - processed meal is soya bean meal feed grade falling under HS code 23040030. The protein content of the feed grade is less than 50% and not fit for human consumption clearly indicates that this part of the submission relates to raw materials and not for the finished products as observed by the authority of advance ruling. Thus, it is amply clear that on the face of the order error has been occurred and so for rectification of error Section 102 of CGST Act, 2017 is rightly applicable. (g) The authority of advance ruling also observed that there are no evidences in support of the applicant s claim that the said products under HS code 23099090 is far from the truth as the process of fermentation of the raw materials etc. for manufacturing of the product has been discussed in detail to prove the fact that the end product will be used for preparation of a kind used in animal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be worth to mention that the new registration 23AABCV1297N3ZY obtained by the applicant for the new unit at Plot Number 112, Industrial Area No.1, Dewas (MP) 455001 on 30.03.2019 This unit is not engaged in manufacturing and export of various soya processed food, used for human as well as animal consumption as mentioned in para 1 of the order. (ii) The aforesaid apparent mistake has resulted to incorrect information regarding new unit of the applicant as mentioned in para 7.4 (discussion and finding portion) of the ruling referred above. The new unit of the applicant will only manufacture the finished product which will only be used for animal feeding and the same will not be used for any other purpose. The product viz. soya flakes / Grits, Soya Flour, Soya lecithin, Soya Protein / TVP, GMO Soyabean meal, non GMO Soya Grits etc. as mentioned in Para 7.4 of the order are manufactured by another unit of the applicant situated at 28, Industrial Area, A.B. Road, Dewas and having GST Number 23AABCV1297N2ZZ. (iii) The discussion and findings in para 7.4 of the ruling was relevant for the authority to take decision on the facts as mentioned in the said para. This has also indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentation etc. will only be used for animal feeding and not for any other purpose. The manufacturing process also endorses that the finished product being manufactured from raw material having protein content the feed grade is less than 52% will only be used for animal feeding and not for any other purpose as declared by the Applicant. (b)The new unit is not engaged in manufacturing any product viz. soya flakes / Grits, Soya Flour, Soya lecithin, Soya Protein / TVP, GMO Soyabean meal, non GMO Soya Grits etc. as mentioned in para 7.4 of the earlier order dated 02.01.2020. (c) The various judgements quoted by the applicant i.e. in the case of National Plastic Industries Ltd. reported in 2018 (16) GST 287(A.A.R. - GST) = 2018 (8) TMI 1650 - APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA , in the case of Maheshwari Stones Supplying Company reported in 2018 (13) GSTL 345 (A.A.R. - GST) = 2018 (6) TMI 458 - AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA , in the case of C.P.R. Mill reported in 2018 (17) GSTL 146 (A.A.R. - GST) = 2018 (9) TMI 1336 - AUTHORITY FOR ADVANCE RULING, TAMILNADU , in the case of SRIVET HATCHERIES reported in 2018 (19) G.S.T.L. 140 (A.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23099032 Fish meal in powdered form 23099039 Others 23099090 Others Further, the notification 02/2017-CT(Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act has exempted intra-state supplies of goods, the description of which is specified in column (3) of the Schedule appended to the said notification, falling under the tariff item, subheading, heading or Chapter, as the case may be. as specified in the corresponding entry: Sl.No. Chapter heading/ sub-heading/ tariff item Description of goods 102. 2302, 2304, 2305, 2306, 2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry feed cattle feed, including grass, hay straw, supplement husk of pulses, concentrates additives, wheat bran de-oiled cake 11.8 From above it is derived that the Chapter heading 23099090 is exclusively meant for animal feed. We find that the applicant has started their new unit at 112, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not for in other purpose. 11.9 From the above discussion and as per declaration of the Applicant that the said product i.e. Bio Processed Meal is only for specific use of Animal Feed, it is clear to us that the finished product being manufactured by the applicant will only be used for animal feeding and not for any other purpose and thus it should fall under chapter heading 23099090. We hold it accordingly. 11.10 Serial No. 102 of Notification 2/2017-CT (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act speaks that the goods Aquatic feed including shrimp feed and prawn feed. poultry feed cattle feed, including grass, hay straw, supplement husk of pulses, concentrates additives, wheat bran de-oiled cake falling under chapter heading 2302, 2304, 2305, 2306, 2308, 2309 are exempted from payment of GST. 11.11 In view of the aforesaid discussion the applicant is eligible to avail exemption on their finished products Preparation of a kind used in Animal Feeding - Bio Processed Meal from payment of GST under Notification 2/2017-CT (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act. We hold accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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