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TMI Blog2022 (1) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... ground or in the form of pellets, resulting from the extraction of soyabean oil under Chapter 2304. Soya husk resulting from the extraction of Soyabean oil, being principal input/ ingredient for manufacture or processing of Cattle feed and Poultry feed which may become value added product in the market. Soya husk being principal input/ ingredient to Poultry feed and Cattle feed industry, which is taxable @ 5% under Subheading 2304 as per Entry 105 of Notification No.1/17-Central Tax (Rate) dated, 28.06.2017. X X X X Extracts X X X X X X X X Extracts X X X X ..... of GST. 2) If the answer to question 1 is no, then the determination/ classification of correct tariff and rate of tax thereon under which soya husk resulting from extraction of Soyabean oil, being an input / ingredient to Cattle feed, will fall? 5. RECORD OF PERSONAL HEARING 5.1 Shri S, Krishnan, Chartered Accountant - Authorized Representative of the applicant appeared for personal hearing on behalf of the applicant and reiterated the submissions made in the application. The applicant states that - 5.2 SI.No.102 of Notification No.2/17-Central Tax (Rate) dated, 28.06.2017 exempting the goods from the whole of GST reads as under: - SI.No. Chapter/Heading/ Sub-heading/ Tariff item Description of goods 102 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 (other than rice bran). 5.3 SI.No. 103A, 103B & 105 of Notification No. 1 / 17-Central Tax (Rate) dated, 28.06.2017 prescribing GST rate of 5% (CGST 2.5% & SGST 2.5%) read as under:- SI.No. Chapter/Heading/ Sub-heading/ Tariff item Description of goods 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of the Hon. Supreme Court in the Commissioner of Customs (Import), Mumbai Vs. Dilip Kumar (2018-361-E.L.T-577) has laid down that inputs for animal feed are different from the animal feed. Said S.No. 102 covers the prepared aquatic/ poultry/ cattle feed falling under headings 2309 and 2301. The entry does not apply to raw material/ inputs like fish meals or meat cum bone meal (MBM) falling under heading 2301" Thus, the clarifications issued by the above Circular and the decision of Larger Bench of the Hon. Supreme Court in the Commissioner of Customs (Import), Mumbai Vs. Dilip Kumar (2018-361-E.L.T-577) are relevant to the interpretation f entries with regard to taxability of inputs / ingredients which are used in the manufacture and processing of Cattle feed and Poultry feed under Entry 103A, 103B and 105 of Notification No.1/2017-Central Tax (Rate) dated, 28.06.2017 and Entry 102 of Notification No.2/17-Central Tax (Rate) dated, 28.06.2017, exempting the goods included therein from payment of GST. 5.7 As per entry 102 of Exemption Schedule, aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under two or more headings", classification shall be effected as per sub-Rule (a), which reads as under:- The heading which provides the most specific description shall be preferred to headings providing a more general description. 6. COMMENTS OF THE JURISDICTIONAL OFFICER The comments of the Jurisdictional Officer were called for in respect of the application submitted by the applicant. Accordingly, the comments were received from, Joint Commissioner (Technical), Office of the Principal Commissioner CGST & Central Excise, Bhopal, vide his letter dated, 13.12.2021, wherein the brief of the comment made by him is as following,- "The heading 2304 squarely covers Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil, the applicant has also categorically stated that soya husk is product obtained from the extraction of soyabean oil. The goods of the applicant are not covered under by entry No. 102 of Notification 02/17-Central Tax (Rate) dated, 28.06.2017 which reads as follows: - "102. Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also be covered under Tariff item 2302 50 00 as residue of Leguminous plants. 7.5 As per tariff item 2302, the said tariff item includes 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. It means that the said tariff includes poultry feed and cattle feed derived from the sifting, milling or other working of cereals or of leguminous plants. 7.6 As per entry 105 of Schedule I. the tariff 2304 covers Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil attract tax @5% (CGST 2.5% & SGST 2.5%). 7.7 The applicant is engaged in the business of manufacturing and sale of Soya Oil, wherein Soya DOC, Soya husk etc are obtained through the process of solvent extraction of soya seed at the factory located at Vidisha. Soya oil is principal product of process of solvent extraction of Soya seed. During the process of manufacture, many by-products and waste products are also obtained. 7.8 The applicant is supplying soya husk to the manufacturers / processors of Poultry feed and Cattle feed, who in turn, supply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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