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TMI Blog2021 (10) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... prove its entitlement is on the person (assessee/ appellant) claiming it. The product Rice Bran (102+ Oil) of the appellant is not covered by entry at Sr. No. 102 of Notification No. 2/2017-Central Tax (Rate), as amended. The product of the appellant cannot be termed as Rice Bran within the meaning of the said term as understood in the common or industry parlance. Merely because the appellant has given the name Rice Bran (22+ Oil) to its product, which otherwise is not Rice Bran , the said product cannot be held to be Rice Bran . Therefore, the product of the appellant is not covered by Sr. No. 103B of Schedule I of Notification No. 1/2017-Central Tax (Rate), as amended - the product of the appellant is classifiable under Chapter Heading 2302 and conforms to the description 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 - the said product is covered by entry at Sr. No. 103A of Schedule I of Notification No. 1/2017-Central Tax (Rate), as amended and is leviable to Goods and Services Tax @ 5% ad-valorem. - GUJ/GAAAR/APPEAL/2021/12 - - - Dated:- 8-3-2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fugal process is Non Edible Oil used in the manufacturing of oil based soap. Accordingly, the Rice Bran is used as cattle feed or in the manufacturing of cattle feed and the Non-Edible Oil is used in the manufacturing of oil based Soap. 3.3 The appellant has submitted that the product Rice Bran was exempted from GST vide Sr. No. 102 of Notification No. 2/2017-Cetral Tax (Rate) dated 28.06.2017 and corresponding Notification No. 2/2017-State Tax (Rate) dated 30.06.2017 (the Central Tax (Rate) Notification referred to herein after includes the reference to corresponding State Tax (Rate) Notification also), however, confusion was created due to addition of words other than Rice Bran in the said Sr. No. 102 vide Notification No. 7/2018-Central Tax (Rate) dated 25.01.2018, as the said product could be covered under Sr. No. 103B inserted vide Notification No. 6/2018-Central Tax (Rate) dated 25.01.2018 inasmuch as the said product was used as cattle feed or as an ingredient in the manufacturing of cattle feed . 3.4 The appellant, vide further written submissions dated 26.08.2020, relied upon the Advance Ruling No. KAR ADRG 23/2020 dated 23.04.2020 in the case of Shri Mukt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edule to the Customs Tariff Act, 1975 (herein after referred to as the CTA, 1975 ) covers 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 . 7.5 The Explanatory Notes of HSN for Chapter Heading 2302, provides as follows :- This heading covers : (A) Bran, sharps and other residues from the milling of cereal grains. This category essentially comprises by-products from the milling of wheat, rye, oats, maize (corn), rice, grain sorghum or buckwheat, which do not comply with the requirements of Note 2(A) to Chapter 11 as regards starch content and ash content. These are, in particular : (1) Bran consisting of the outer skins of cereal grains with a small proportion of the adhering endosperm and a little flour. (2) Sharps (or middlings), obtained from ground cereals as a byproduct in the manufacture of flour and consisting largely of the finer portions of the skins left after screening and sieving and of a little flour. (B) Residues from the sifting or other working of cereal grains. Sifting residues, obtained during pre-milling operati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he product of the appellant is classifiable under Tariff Item 2302 40 00 of the CTA, 1975. Even otherwise, in our considered view, the product of the appellant cannot be classified under Chapter Heading 3825 of the CTA, 1975 which covers Residual products of the chemical or allied industries, not elsewhere specified or included, Municipal waste, sewage sludge, clinical waste, waste organic solvent, wastes of metal pickling liquors etc. APPLICABLE RATE OF GOODS AND SERVICES TAX 9.1 The appellant has claimed that its product be held as cattle feed falling in entry at Sr. No. 102 of Notification No. 2/2017-Central Tax (Rate), which reads as follows :- S.No. Chapter/Heading/ Subheading/ Tariff item Description of Goods 102. 2301, 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 In the aforesaid entry, in column 2, the entries 2301, 2302, 2308, 2309 were substituted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 12.07.2017, entry at Sr. No. 103A of Schedule - I read as follows :- S. No. Chapter/ Heading/ heading/ item Sub-Tariff 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] ; 10.2 In the said Notification No. 1/2017-Central Tax (Rate), Sr. No. 103B was inserted in the Schedule I vide Notification No. 6/2018-Central Tax (Rate) dated 25.01.2018 as follows :- S. No. Chapter/ Heading/ heading/ item Sub-Tariff Description of Goods 103B 2302 Rice bran (other than de-oiled rice bran) ; 10.3 In order to decide whether the product of the appellant can be termed as Ric ..... 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