9911796707
TMI Blog2021 (4) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... called the 'Applicant') is registered under the GST Vide GSTIN 33ABBFA8029R1Z4. The applicant is dealing with the service of cold storage They have sought Advance Ruling on the following question: Whether the service of cold storage of tamaring inner pulp without shell and seeds are exempted under the purview of the definition of Agricultural produce vide Notification No. 11/2017- C.T.(Rate) and 12/2017- C.T.(Rate) both dated 28/06/2017. The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that their service is covered under Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 under Sl.No.24(e) Loading unloading packing storage or warehousing of agricultural produce (Heading SAC 9986). Entry no.54 of Notification No.12/2017-CT(Rate) dated 28.06.2017 exempts services relating to cultivation of plants and rearing of all life forms of animals except the rearing of horses, for food, fibre, raw material or other similar products or agricultural produce by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tograph of raw tamarind freshly cultivated and then stored in their facility. 3.2. The applicant submitted the following documents vide their letter dated 18.12.2020 * Copies of rulings of ARAs of Andhra Pradesh and Rajasthan in the case of M/s. SSSVK Cold Storage Pvt Ltd and Sardar Mal Cold Storage & Ice Factory respectively * Copies of invoices raised by them (Random) * Copy of the FSSAI license * List of major service receivers under the class of receivers-Traders/Farmers with the details of commodity. * Photograph of freshly cultivated tamarind and tamarind stored in their storage unit alongwith Photographs of removal of seed from shell * Video CD for process of tamarind * Affidavit of Shri. K.A.T. Karthikeyan, trader; L.G. Paul Pandian, Trader; M.R. Kannan, Trader A. Mayil Rajan, trader of tamarind * Oath of Allegiance of Shri R. Sivamurthi; Shri K. Nandakumar, R. Ramar cultivators of tamarind trees in their land 3.3 They had further stated inter-alia, that: * The rate of tax for the sale of tamarind is NIL * Theirs is Pure Service. They are dealing with the service of cold storage of agricultural produce like Apple, dates, potato, chillies and Tamarind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of the Jurisdictional Authorities. The applicant has sought ruling on the following question: Whether the service of cold storage of tamarind inner pulp without shell and seeds are exempted under the purview of the definition of Agricultural produce vide Notification No.11/2017 and 12/2017 Central Tax (Rate) both dated 28.06.2017. The ruling sought for is on the applicability of the above Notification. As per Section 97 (2), the question raised is within the ambit of this authority and the application is accordingly admitted. 7.1 The facts of the case as available on the records before us, are that the applicant is engaged in providing services of cold storage for apple, dates, potato, chillies, tamarind etc. They are licensed under FSSAI to carry out the business of Trade/Retail -Storage (Cold/Refrigerated) They are providing the cold storage services to Traders in respect of Dates, Chillies, Tamarind, Horse Gram, Wheat, Coriander, Apple, Potato, Food Grains and to Farmers in respect of Tamarind, Mochai, Pulses as seen from the List of Major service receivers furnished by them. From the document of oath of allegiance furnished it is seen that the said cultivators, Shri R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... characteristics. Hence, the Service of cold storage provided by them are exempted under Notification 11/2017 & 12/2017 CT(Rate) dated 28.06.2017. They have stated that they are collecting GST on cold storage services for storage of dates and that they are not collecting and paying GST for Cold storage services on tamarind, considering the same as 'agricultural produce'. They claim that their services are as per SI.No. 24 (e) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 and exempted vide Sl.No. 54 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017. 7.3 The relevant extracts of Notification 11/2017 & 12/2017 CT(Rate) dated 28.06.2017 are given below for ease of reference: Notification 11/2017 CT(Rate): SI.No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 24 9986 (i) Support services to agriculture, forestry, fishing, animal husbandry. Explanation. - "Support services to agriculture, forestry, fishing, animal husbandry" mean - Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct made in tea factories after carrying out several processes, such as drying, rolling, shaping, refining, oxidation, packing etc. on green leaf and is the processed output of the same. 4. Thus, green tea leaves and not tea is the "agricultural produce" eligible for exemption available for loading, unloading, packing, storage or warehousing of agricultural produce. Same is the case with coffee obtained after processing of coffee beans. 5. Similarly, processing of sugarcane into jaggery changes its essential characteristics. Thus, jaggery is also not an agricultural produce. 6. Pulses commonly known as dal are obtained after dehusking or splitting or both. The process of dehusking or splitting is usually not carried out by farmers or at farm level but by the pulse millers. Therefore pulses (dehusked or split) are also not agricultural produce. However whole pulse grains such as whole gram, rajma etc. are covered in the definition of agricultural produce. 7. In view of the above, it is hereby clarified that processed products such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (dehusked or split), jaggery, processed spices, processed dry f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended, 'Tamarind, dried' falling under the HSN '0813' is taxable to 5% while only 'fresh tamarind' falling under HSN 0810 is exempted vide SI.No.57 of Notification No. 02/2017-C.T.(Rate) dated 28.06.2017 as amended. As per the HSN Explanatory Notes, 'tamarind pods, unprocessed tamarind pulp with or without seeds, strings or pieces of the endocarp' are covered under CTH 0813, when prepared either by direct drying in the sun or by industrial processes. In the present case, the product stored is processed by drying the same in the sun and then by beating with wooden sticks to remove the pod and hammered to deseed and destring for extraction of the endocarp/pulp of the Tamarind. This process is not done at farm level. It is clone as a 'Cottage Industry' as furnished in the affidavits of the Traders and the Oath of allegiance of the Farmers to whom the storage services are extended by the applicant. Therefore, as clarified in the Circular above, the Tamarind which is processed by sun drying, deshelling, deseeding, the process which are not farm level processes, is not an 'Agricultural Produce' as defined under explanation 2(d) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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