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TMI Blog2021 (1) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ered as cattle feed when the definition itself says that it is used as a major supplement for cattle feed. Further, they themselves have submitted that maize bran is usually a mixture of the bran fraction and other by-products and a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed. They have also stated that they supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix Maize Bran with other maize processing by-products. It can also be construed from the above that the maize bran supplied by them to the farmers would not be directly fed to cattle but be mixed with the cattle feed before feeding it to the cattle. In view of the above, it can be seen that Maize Bran in itself is not a cattle feed but is a major ingredient used in the manufacture of cattle feed as submitted by the applicant. Thus, the applicant by themselves have contradicted their contention through their submission. The applicant has supplied Cattle Feed Bran Dry to M/s Dutt Industries, Visnagar, a manufacturer, who is engaged in the manufacture of cattle feed (as per the data av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of various maize processing industries; that the production of Maize Bran amounts to 13% of the total production of the applicant and is found in three different forms: (a) Maize Bran dry (b) Maize Bran wet (c) Maize Bran(CSL mixed); that Maize Bran theoretically consists of the bran coating removed in the early stages of wet milling; that Maize Bran is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemicelluloses, 15-18% cell cellulose, 3-6% oil, and 1-2% other components; that maize bran stream coming from dewatering presses contains about 30 to 50% solids; that the maize bran is usually a mixture of the bran fraction and other by-products and is, therefore, a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed; that the applicants supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix maize bran with other maize processing by-products. 2.1 That prior to the GST regime, they were clearing Maize Bran for home consumption by classifying the same under heading 23021010 of Central Excise Tariff Act, 1985 and have submitted ER1 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Tax (Rate)have been granted exemption under Sr.No.102 of Notification No.2/2017-Central Tax (Rate); that as per the said Notification, cattle feed are chargeable to NIL rate of duty. 2.6 The applicant has further stated that presently they are supplying the Maize Bran by charging GST @ 5% and has submitted a copy of sample invoice. 3. In view of above backdrops, the applicant has put forward his question on which advance ruling is required, as under: Whether Maize Bran, which is a cattle feed, is chargeable to CGST @2.5% under Sr.No.103A of Notification No.1/2017 or chargeable to NIL rate as per Sr.No.102 of the Notification No.2/2017? 4. Regarding the interpretation of law/facts in respect of the question on which advance ruling is required, the applicant has quoted Sections 95 to 106 of the CGST Act, 2017 and stated that the maize bran is supplied by them to local farmers and manufacturers of the cattle feed for use as cattle feed only; that maize bran is one of the most important cereals used in animal/cattle feed and the same being rich in nutrients, forms a major ingredient for cattle feed; that it is produced in wet or dry form both; that thus, as Maize B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n so chosen is generic and not specific. 4.2 In view of the above, the applicant has submitted that irrespective of the fact that Maize Bran is also covered under heading 103A of the Notification No. 1.2017 chargeable to CGST @ 2.5%, since Entry No. 102 of the Notification No. 2/2017-CT (Rate) is more beneficial to the applicant, tax chargeable on goods supplied by the applicant should be NIL. 5. At the time of personal hearing held through Video Conferencing on 09.07.2020, the Authorised Representative of the applicant, Ms. Yashasvi Jain, reiterated the facts as stated in the Application and mentioned herein above. DISCUSSION FINDINGS: 6. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts the applicant s interpretation of law. 7. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et, same is rightly eligible for exemption under Sr.No.102 of Notification No.2/201-7-Central Tax (Rate). (x) The applicant has also submitted a copy of sample invoice vide which they have removed Maize Bran paying GST of 5%. Further, they have also quoted a few citations/judgements to support their contention. 9. The applicant has submitted the following question for the purpose of advance ruling: Whether Maize Bran which is a cattle feed is chargeable to CGST @ 2.5% under Sr.No.103A of Notification No.01/2017 or chargeable to NIL rate as per Sr.No.102 of Notification No.2/2017? 10. In order to determine the tax liability on the supply of Maize Brans by the applicant, we are required to refer to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 containing the sub-headings as well as the rates of Central Tax GST applicable to various goods, which are covered under 6 schedules as under: (i) 2.5 per cent. in respect of goods specified in Schedule I, (ii) 6 per cent. in respect of goods specified in Schedule II, (iii) 9 per cent. in respect of goods specified in Schedule III, (iv) 14 per cent. in respect of goods specified in Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eds for fish (prawn, etc.) : 2309 90 31 - Prawn and shrimps feed 2309 90 32 - Fish meal in powdered form 2309 90 39 - Other 2309 90 90 - Other 13. On going through the entry of the above product in the Notification No.01/2017-Central Tax(Rate) dated 28.06.2017(hereinafter referred to as the said notification), we find that the same appears at entry No.103A (after amendment of the said notification vide Corrigendum No.2 dated 12.07.2017 vide which entry No.103A was inserted), which reads as under: S.No. Chapter/Heading/ Subheading/ Tariff item Description of goods 103A 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[ other than aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed , including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake] ; 13.1 We also find that Notification No.2/2017-Central Tax(Rate) dated 28.06 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maize bran is usually a mixture of the bran fraction and other by-products and a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed. They have also stated that they supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix Maize Bran with other maize processing by-products. It can also be construed from the above that the maize bran supplied by them to the farmers would not be directly fed to cattle but be mixed with the cattle feed before feeding it to the cattle. In view of the above, it can be seen that Maize Bran in itself is not a cattle feed but is a major ingredient used in the manufacture of cattle feed as submitted by the applicant. Thus, the applicant by themselves have contradicted their contention through their submission. 15. We have also gone through the copy of the sample invoice given by the applicant, details thereof are as below: Invoice no. dt. Name of the buyer Name of the product Classification of the product Quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified according to their popular meaning as understood in the commercial sense and not as per the scientific/technical meaning. (iii) In the case of CCE v/s Favourite Industries-2012 (278) ELT 145 (SC) = 2012 (4) TMI 65 - SUPREME COURT , it was held that it is a well settled legal proposition of law that liberal construction is to be given to beneficial notification and therefore the production should be classified on the basis of its use. (iv) In the case of Rhino Machines Pvt. Ltd. v/s CCE, Vadodara-2005 (181) ELT 63 (T) = 2004 (12) TMI 139 - CESTAT, MUMBAI , it was held that goods have to be assessed in the form in which they are cleared from the factory. (v) In the case of Share Medical Care v/s UOI-2007 (209) ELT 321 (SC) = 2007 (2) TMI 2 - SUPREME COURT , it was held that if the applicant is entitled to benefit under two different Notifications or under two different heads, he can claim more benefit and it is duty of authorities to grant such benefits, if applicant is entitled to such benefit. (vi) In the case of HCL Ltd. v/s Collector of Customs, New Delhi-2001 (130) ELT 405 (SC) = 2001 (3) TMI 971 - SC ORDER , it was held that when pluralitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion dispute here is between the following two entries in the two notifications. The details are as under: Notification Tariff Line Description S. No. 102 of notification No. 2/2017- Central Tax (Rate) dated 28.6.2017 2301 ,2302,2308, 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 S. No. 103 of notification No. 1/2017- Central Tax (Rate) dated 28.6.2017 2301 Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption ; greaves 4.2 A number of raw materials , such as fish meal falling under heading 2301, meat and bone meal also falling under heading 2301, oil cakes of various oil seeds, soya seeds, bran , sharps, residue of starch and all other goods falling under headings 2302, 2303, 2304, etc. are used to manufacture/formulation of, aquat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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