9911796707
TMI Blog2022 (2) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-06-2017. HELD THAT:- The applicant is supplying goods which are produce of cultivation of plants. However they are of seed quality and not grain, therefore further they are not meant for food, fibre, fuel or raw material for further processing. In the definition of agricultural produce, the word raw material is used which is a general word and is in the company of specific words i.e., food, fibre and fuel. These specific words indicate direct consumption by human or in industry but not in cultivation. Supply of seed does not fall under the definition of agricultural produce as the seed does not fulfill the utilities prescribed therein - Similarly the said definition restricts the agricultural produce to unprocessed goods. Further even if processing is done it should be such processing as done by a cultivator for primary market . Essentially processed agricultural products do not fall under this definition. If any processing is done it should be on an equal footing to that done by a cultivator for primary market i.e., processing made by a farmer for agricultural mandi. Even if the farmer does any different processing such produce will not fall under this defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of ₹ 5,000/- for SGST and ₹ 5,000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted 4. Brief facts of the case: M/s. M. Narasimha Reddy Sons is engaged in production and processing of agricultural seeds. In the process of production, the applicant outsources certain services such as cleaning, drying, grading and packing to the job workers and stores the seeds in various facilities after processing them. In the process they also transport the seeds by engaging a GTA. The applicant is desirous for ascertaining whether the services obtained by them in production of the seeds from other agencies including GTA are taxable or exempt. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the Seed Act, 1966 defines seed at Section 2(11) as: Seed means any of the following classes of seeds used for sowing or planting- (i) Seeds of food crops including edible oil seeds and seeds of fruits and vegetables; (ii) Cotton seeds; (iii) Seeds of cattle fodder; And includes seedlings, and tubers, bulbs, rhizomes, roots, cuttings, all types of grafts and other vegetatively propagated material, of food crops or cattle fodder; Thus all grain do not qualify to be seed. Further the sale and purchase of seed is subject to the provisions of Seed Control Order, 1983 and any deviations from the control rules contained in the said order are punishable under the law. Even in the context of GST law, Seed is treated separately from grain . Therefore seed is included at Serial No. 79 of Notification No. 02/2017 dated: 28.06.2017 wherein exemption is accorded to all goods of seed quality . Clearly GST law also makes a distinction between grain and seed, therefore even if grain is taxable it will be exempt if it is of seed quality. For example: Serial No. 65 of Notification No. 01/2017 clearly states that tax can be levied @5% on Groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the general word being restricted to a sense analogous to that of the less general. In this case, it was held that even in case of inclusive definition, principle of noscitur a sociis can be applicable. Applying this rule to the present facts, supply of seed does not fall under the definition of agricultural produce as the seed does not fulfill the utilities prescribed therein. Similarly the said definition restricts the agricultural produce to unprocessed goods. Further even if processing is done it should be such processing as done by a cultivator for primary market . Essentially processed agricultural products do not fall under this definition. If any processing is done it should be on an equal footing to that done by a cultivator for primary market i.e., processing made by a farmer for agricultural mandi. Even if the farmer does any different processing such produce will not fall under this definition. The facts presented by the applicant clearly indicate that the processing done by them to turn grain into seed quality goods is different from the processing done by a cultivator or producer of grain for primary market i.e., agricultural mandi or agricult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether the storage of the seeds in the storage facility/godowns, loading, unloading and packing of the seeds (heading No.9986) by the applicant - job worker on job work basis are exempt from payment of GST in terms of Sl. No. 54(e) of the Notification No. 12/2017- Central Tax (Rate) dated 28-06-2017 and Sl.No.24(1)(e) of the Notification No. 11/2017- Central Tax (Rate)dated 28-06 2017 or any other entry/entries of the above notifications. Not exempt as discussed above 3. Whether the processes, namely, cleaning, drying, grading and treatment with chemicals (heading No.9986), carried out by the applicant - job worker on job work basis, are exempt from payment of GST in terms of Sl.No.54(c) and (h) of the Notification No. 12/2017- Central Tax (Rate) dated 28-06-2017 read with the definition of agricultural produce there under and Sl.No.24(1)(c), (h) and (iii) of the Notification No. 11/2017- Central Tax (Rate)dated 28-06-2017 read with the definition of agricultural produce there under or any other entry/entries of the above notifications. Not exempt as discussed above. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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