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TMI Blog2024 (10) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... pplies with the contention that since end use of the cotton seed oil cakes is only for cattle feed the product has to be exempted, meaning thereby that the merely the supply of the cotton seed oil cake to the traders would not determine the levy of GST as end use of cattle feed is not in dispute. The Hon ble Supreme Court in case of COMNR. OF CENTRAL EXCISE VERSUS M/S. GOPSONS PAPERS LTD. ANR. [ 2015 (10) TMI 443 - SUPREME COURT] has therefore, in such circumstances in the facts of the said case held that end use of the product at the ends of the purchaser is not the concern of the assessee and cannot be the consideration for classifying the goods in question. It is opined that in the facts of the case when the petitioner has made supply of the cotton seed oil cake as cattle feed, the petitioner was entitled to exemption under Serial No. 102 of Exemption Notification No. 2 of 2017. The impugned orders dated 11.01.2023 passed by the Adjudicating Authority as well as order dated 29.03.2022 passed by the Appellate Authority are hereby quashed and set aside - petition allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... s cattle feed and after coming into force of the GST with effect from 01.07.2017, according to the petitioner, the cotton seed oil cake being used as cattle feed was entitled to exemption vide Entry no. 102 of Notification no. 2 of 2017 dated 28.06.2017 and accordingly, the petitioner continued to avail exemption on inward and outward supplies of cotton seed oil cake as cattle feed. 5.3. It appears that during the course of audit of financial records of the petitioner, audit objections were raised by the Respondent no.3 that during the period from 01.07.2017 to 29.09.2017, if the supply of the cotton seed oil cake is for cattle feed then only the exemption can be claimed and it was found that the petitioner had supplied cotton seed oil cake to the traders which amounted to supplies for the purpose of trading or for further supplies and not for cattle feed and the petitioner failed to establish that supplies of the cotton seed oil cake were used for cattle feed and thus, wrongly availed the exemption under Entry No. 102 of Notification No. 2 of 2017. It was therefore concluded by the audit objections that the petitioner has short paid the GST on cotton seed oil cakes under the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tle feed. It was submitted that the end use of the product is not relevant as the petitioner has traded in cotton seed oil cakes for the purpose to cattle feed only. 6.1. In support of his submissions, reliance was placed on the decision of the Hon'ble Supreme Court in case of Commissioner of Central Excise Vs. Gopsons Papers Limited and Another reported in (2015) 17 SCC 176, wherein the Hon'ble Apex Court has held as under: "4. It is clear from the above that insofar as the assessee is concerned, it is undertaking the work of printing alone and is supplying to those who place orders in this behalf. The end use of the said product at the hands of the purchaser is not the concern of the assessee and cannot be the consideration for classifying the goods in question. It is the respondent which is to be assessed under the Central Excise Act and it has to pay the excise duty on the manufacturing process undertaken by it." 6.2. It was further submitted that as per the Notification No. 28 of 2017 dated 22.09.2017, the insertion of Entry No. 102A would relate back to the exemption from the inception and the Appellate Authority was not justified in restricting or applying such notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lier VAT Act and as per the Entry No. 102 of Notification No. 2 of 2017, it clearly provides for exemption to levy of GST on cattle feed. Even on perusal of the show-cause notice, it is revealed that the respondent Authority has reproduced objections raised by the Audit Party which clearly shows that the Audit Party while considering the replies made by the petitioner during the course of Audit and deliberations on the issues though recorded that the petitioner was not able to prove or state the status of the cotton seed oil cake purchasers with GSTIN but such purchasers also declined to pay up the tax on such outward supplies with the contention that since end use of the cotton seed oil cakes is only for cattle feed the product has to be exempted, meaning thereby that the merely the supply of the cotton seed oil cake to the traders would not determine the levy of GST as end use of cattle feed is not in dispute. The Hon'ble Supreme Court in case of Gopsons Papers Limited (Supra) has therefore, in such circumstances in the facts of the said case held that end use of the product at the ends of the purchaser is not the concern of the assessee and cannot be the consideration for classi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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