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TMI Blog2020 (8) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further,to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGSTand Rs. 5000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted. 4. Brief facts of the case: The facts, in brief, that were reported by the tax payer in their application are as follows: a. M/s Sushi Pet Nutriscience, is a partnership firm which is engaged in manufacturing/rendering of 'Poultry Meal' and 'Poultry Fat'; b. Both these products are used as one of the protein raw material for the manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are aqua/poultry/animal feed manufacturers viz., a. M/s Mars International India Private Limited. b. M/s NG Feeds Private Limited. c. M/s ABIS Exports India Private Limited. d. M/s Kwality Feeds Limited. g. For poultry fat, the major customers are: a. M/s Bharath Luxindo Agri Feeds Private Limited b. M/s ABIS Exports India Private Limited c. M/s Anmol Feeds Private Limited d. M/s NG Feeds Private Limited 5. Questions raised: With the above background, the applicant sought for ruling with regard to the HSN codes and the rate of tax in respect of "poultry meal" and "poultry fat" supplied by their unit. 6. Contention of the tax payer: It was statedby the applicant that they are classifying the "poultry meal" under HSN Code 2309 9020 and supplying the same charging'nil' rate of tax.Further, it was stated that they areclassifying the by-product "poultry fat" under HSN code of 1501 9000 and supplying the same charging tax at the rate of 12%( 6% CGST + 6% SGST/UTGST). In support of the above tax rates, they referred to the decision of the Hon'ble CESTAT, Chennai delivered in the case M/s. Supreme Sugna Foods Co. Ltd., Vs. Commr. Of C.Ex., Coimbatore [reported in 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts with crude fiber content over 18% of dry matter including most fresh and dried for ages and fodders Concentrates maybe high in energy referred as to energy concentrates such as cereals and milling by products, or high in protein, with over 20% crude protein referred to as protein concentrates. Concentrates may be fed in raw or milled forms as individual feeds (sometimes referred to as straights) or maybe blended or formulated into balance ratios for particular production purposes 7. Personal Hearing: The Authorised representative of the unit namely Sri. G. Subramanyam Setty, Chartered Accountant attended the personal hearing held on 20.02.2020.He reiterated the facts mentioned above and sought for clarifications in respect of the queries raised in their application. 8. Discussion & Findings: 8.1. We have carefully gone through the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. The applicant sought for advance ruling with regard to the tax rate in respect of 'poultry meal' (commonly known as 'animal feed supplement' in the trade) and 'poultry fat' manufactured by them. 8.2. The Central Government, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing. Taking into consideration and the description of the goods listed in chapter heading No. 2309, it can be concluded that the said chapter heading covers animal feeds which are used for feeding the animals. In the case on hand, the applicant categorically stated in their application that the product 'poultry meal' manufactured by them would be used for further manufacture of 'animal feed'. Thus the product manufactured by the applicant evidently used as raw material/ input in the manufacture of animal feed. In this view of the matter we hold that the product manufactured is not animal feed, but a raw material for 'animal feed'. There is distinction between the product 'animal feed' and raw material for animal feed. This view finds support by the decision of the Larger Bench of the Hon'ble Supreme Court in the case Commissioner of Customs (Import), Mumbai v. Dilip Kumar [2018 (361) E.L.T. 577] wherein it was laid down that inputs for animal feed are different from the animal feed.In this view of the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opined by the applicant. This view is fortified by the CBIC Circular bearing No. 80/54/2018-GST, dated 31-12-2018. 8.7. We find that the disputed product (classifiable under chapter sub-heading number 2301.10.90) attracts GST rate of 5% (2.5 % CGST + 2.5% SGST) under sl. No. 103 of the Schedule-1 of the Not. No. 01/2017-CT (R), dated 28.06.2017 (as amended). 8.8. As regards 'poultry fat', it is noticed that the said product emanates as a by-product during the process of chicken remnants for manufacture of the primary product viz., 'poultry meal'. It is noticed that Schedule to the Customs Tariff has two entries covering the said product. These are as follows: Tariff Item Description of goods 0209 Pig fat, freeofleanmeatandpoultryfat,notrenderedorotherwiseextracted,fresh, chilled, frozen, salted, inbrine, dried or smoked 0209 10 00 Of pigs 0209 90 00 Other : 1501 Pig fats (including lard) and poultry fat, other than that of heading 0209or 1503 1501 10 00 Lard 1501 20 00 Other pig fat 1501 90 00 Other As can be seen from the above, Tariff Heading No. 0209 covers 'poultry fat' not rendered/otherwise extracted and Tariff Heading No. 1501 covers 'poultry fat' ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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