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TMI Blog2021 (1) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... certain doses with other fodder to the cattle, like cows, buffaloes, goat, etc., is purported to increase the production of milk from such cattle along with increasing their immunity against the diseases. Thus, it is evident that the impugned product is perceived as cattle food having the aforementioned specific uses - The explanatory notes clearly say that molasses is not covered under heading 2303 but under 1703. A larger part of the Appellant s product consists of molasses and molasses itself are covered under heading 1703. Moreover, it is also made clear that molasses prepared as animal food fall in heading 2309. Therefore, it is clear that the product of the Appellant does not fall under Heading 2303 but falls under Heading 2309. The Appellant has, neither in the written submissions nor during the hearing, given any concrete reasons or grounds to support his contention that the product does not fall under Heading 2309 but under Heading 2303. As regards the Appellant s contention that the impugned product is not fed to the cattle in isolation but the same is fed by mixing with the other fodders in fixed prescribed dosage, and thereby, not deserving to be qualified as cattle fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tra Goods and Services Tax Act, 2017) 1. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MUST Act. 2. The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as "the CGST Act and MGST Act"] by M/s. Madhurya Chemicals, Sr. No. 143 - 144, Industrial Estate, Kopargaon, Dist - Ahmednagar, 423601. ("the Appellant") against the Advance Ruling No. GST-ARA-33/2019-201B-40, dated 18.03.2020. = 2020 (7) TMI 510 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA, pronounced by the Maharashtra Authority for Advance Ruling (herein after referred to as MAAR). The said Appeal has been filed along with the application for the condonation of delay of 30 days from the due date as prescribed under proviso to Section 100(2) of the CGST Act, 2017. The Appellant has attributed the said delay to the closure of their offices o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inerals. Ahaliv Galactogogue increases and stimulate milk process. Kalmegh Digestive and liver tonic. Shepa Galactogogue. Ashwagnadha Galactogogue, anti - stress and immunity booster. Brahami Anti - stress and immunity booster. Sharpunkha liver tonic and digestive Shatavari Galactogogue, anti - stress, stimulates and increasing process of milk formation Jivanti Galactogogue, anti - stress, stimulates and increasing process of milk formation Gulvel Rich source of vital minerals, Galactogogue Vidarikand Rich source of vital minerals, Galactogogue Methi Galactogogue, anti - stress, stimulates and increasing process of milk formation Nagarmotha liver tonic and digestive Kamboji Galactogogue, anti - stress, stimulates and increasing process of milk formation Guduchi liver tonic and digestive Amala Anti - stress, immunity booster and rich source of Vitamin C 3.6 Based on the above stated facts, the Appellant had applied for the Advance Ruling before the MAAR in respect of the two questions mentioned below: A. Whether the classification of Shatamrut Chyavan' falling under TSH 2309 90 10 of Customs Tariff Act, 1975 as adopted to GST attractin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MAAR has been passed without considering submissions made by the Appellant, and hence, the order passed by the MAAR is not relevant. DEPARTMENT'S SUBMISSIONS 5. The jurisdictional officer, in the subject appeal, has made the following submissions: 5.1 That classification of 'Shatamrut Chyavan', falling under TSH 2309 90 10 of Customs tariff act, 1975 as adopted to GST attracting 'nil' rate (0%) of IGST, (0%) CGST + (0%) SGST, as per the list of exempted goods in terms of SI. No. 102 of Notification No. 02/2017 - Central Tax (Rate), dated 28.06.2017, is correct. The taxpayer is engaged in supply of 'Shatamrut Chyavan' which is a complete animal feed supplement for cattle & ruminants to improve milk & milk fat and increasing resistance to diseases. 5.2 That CBIC Circular No. 80/54/2018- GST, dated 31.12.2018 issued on the subject of the clarification of the GST rates and classification of goods stipulates that while deciding the classification of product claimed as animal feed supplements, it may he necessary to ensure that the said animal feed supplement are ordinarily or commonly known to the trade as products for a specific use in animal feeding. HS Code 2309 would cover only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... residue / waste of sugarcane which is neither a manufactured product nor final product of sugarcane industry, and therefore classified under the Tariff Item 2303 20 00 of the Central Excise Tariff Act, 1985 as bagasse & other waste of sugar manufacturing. 5.6 That in sugar manufacturing, sugar is the final product and molasses is intermediary product, or by- product. Also, the molasses attracts specific rate of duty under the Heading 17.03 of the first Schedule to the Customs Tariff Act, 1975. PERSONAL HEARING 6. The personal hearing in the matter was held on 05.11.2020, which was attended by Shri Vidhyadhar S. Apte, Advocate, as the representative of the Appellant, and by Shri Abhijeet Padekar, Assistant Commissioner, as the Jurisdictional officer/Respondent, in the subject appeal matter. 6.1 During the course of the said hearing, Shri Apte first requested to condone the delay of 30 days in filing the subject appeal as their office was located in the containment zone, and was closed till the end of the August, 2020 due to the prevailing COVID-19 pandemic. Subsequently, he. while reiterating the submissions made in their appeal memorandum, contended that the impugned product w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also examined the impugned Ruling passed by the MAAR, wherein it has been held that the subject product, involved in the application, is rightly classified by the Appellant under chapter heading 2309, attracting 'NIL' rate as per Sl. No. 102 of the Notification No. 02/2017- C.T. (Rate), dated 28.6.2017 and discarded the second question asked by the Appellant, stating that the same is not in relation to the supply of goods or services or both, being undertaken or proposed to be undertaken by the Appellant, and thereby, holding that the said question is outside the ambit of Section 97(2) of the CGST Act, 2017. and therefore, need not be answered. 10. On perusal of the above-mentioned documents and submissions, the moot issues, before us, are as under: I. Whether the classification of the impugned product, falling under TSH 2309 90 10 of the Customs Tariff Act, 1975, as adopted to the CGST Act, 2017, attracting 'NIL' (0%) of 1GST or (0%) CGST + (0%) SGST as per the List of Exempted Goods in terms of SI. No 102 of Notification No. 02/2017 - Central Tax (Rate), dated 28.06.2017, is correct or not? II. Whether the impugned product can be considered as 'waste of sugar manufacturing' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly more than 10% by weight) with one or more other nutrients. It is used mainly for feeding cattle, sheep, horses or pigs. Besides being highly nutritive, molasses enhances the palatability of foodstuffs and thus extends the use of products of low nutritive value such as straw, cereal husks, linseed flakes, and fruit pomace which the animals would otherwise be reluctant to accept. As a rule, these sweetened preparations are fed directly to the animals. However, some of them combine molasses with highly nutritive foods, such as wheat bran, palm kernel or copra oil cake and are used to make complete feeds or supplementary feeds." 15. Thus, the explanatory notes clearly explain that molasses, combined with other feeds, do come under heading 2309. The Appellant has contended in his grounds of appeal that the question framed by them is whether their product is falling under 2309 90 10 or 2303. As per HSN, Heading 2303 covers 'Residues of starch manufacture and similar residues, beet pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of pellets'. The explanatory notes of the HSN says that the heading covers, inter alia, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that while deciding the classification of product claimed as animal feed supplements, it may be necessary to ensure that the said animal feed supplements are ordinarily or commonly known to the trade as products for a specific use in animal feeding. HS Code 2309 would cover only such products, which in the form supplied, are capable of specific use as food supplement for animal and not capable of any general use. As it has been established that the impugned product is an animal feed having specific use, viz.- increasing the milk production of the cattle and increasing the immunity of the cattle to fight diseases, and the said impugned product is also known in the market as the cattle feed supplement only, therefore, the said impugned product would be classified as animal feed supplement, and accordingly would merit classification under the Chapter Heading 2309 and under the Tariff Item 2309 90 10, and would not attract any GST in terms of Si. No. 102 of the Notification No. 2/2017-C.T. (Rate), dated 28.06.2017. 18. As regard the second question posed by the Appellant, we agree with the conclusion drawn by the MAAR that the question does not fall within the purview of Section 97 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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