Classification ruling: 'Shatamrut Chyavan' feed supplement falls under TSH 2309 90 10, attracting NIL GST rate.

The Authority for Advance Ruling (AAR) determined that 'Shatamrut Chyavan', a complete animal feed supplement primarily made from sugarcane molasses, is classified under TSH 2309 90 10, attracting a NIL rate of GST. The product was deemed a prepared animal feed falling under Chapter Heading 23.09, as it enhances nutritional value and is not considered waste of sugar manufacture. The AAR did not address the classification under heading 2303 as 'waste of sugar manufacture', stating it was a general question not specific to the applicant's product.

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Issues Involved:
1. Classification of 'Shatamrut Chyavan' under TSH 2309 90 10 attracting NIL rate of GST.
2. Whether 'Shatamrut Chyavan' can be classified as 'waste of sugar manufacture' under heading 2303 attracting 5% GST.

Issue-wise Detailed Analysis:

1. Classification of 'Shatamrut Chyavan' under TSH 2309 90 10 attracting NIL rate of GST:

The applicant, M/s Madhurya Chemicals, sought an advance ruling on whether 'Shatamrut Chyavan', a complete animal feed supplement made primarily from sugarcane molasses and other ingredients, falls under TSH 2309 90 10 of the Customs Tariff Act, 1975, attracting a NIL rate of GST as per Sr. No. 102 of Notification No. 02/2017 - Central Tax (Rate) dated 28.06.2017.

The applicant argued that the product, being a nutritional supplement to cattle feed, should be classified under Chapter 2303 attracting 5% GST. However, the jurisdictional officer contended that 'Shatamrut Chyavan' should be classified under Chapter 2309 90 10, attracting NIL GST, as it is a complete food supplement used for cattle feed only and not capable of any general use.

Upon reviewing the submissions, the Authority for Advance Ruling (AAR) observed that the product is manufactured from sugarcane molasses mixed with other ingredients to enhance nutritional value. The AAR referred to Chapter 23 of the Customs Tariff Act, 1975, which covers residues and waste from food-preparing industries and products used as animal feeding stuffs. Specifically, Chapter Heading 23.09 includes products used in animal feeding obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material.

The AAR concluded that 'Shatamrut Chyavan' is a prepared animal feed falling under Chapter Heading 23.09, attracting a NIL rate of GST as per Sr. No. 102 of Notification No. 02/2017 - Central Tax (Rate) dated 28.06.2017. The classification under TSH 2309 90 10 was deemed correct.

2. Whether 'Shatamrut Chyavan' can be classified as 'waste of sugar manufacture' under heading 2303 attracting 5% GST:

The applicant also questioned whether the product could be classified under heading 2303 as 'waste of sugar manufacture', attracting 5% GST as per Schedule I (Sr. No. 104) of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017. The jurisdictional officer opposed this, stating that the product, being a complete food supplement for cattle, does not fall under the waste category of sugar manufacture.

The AAR noted that Chapter Heading 23.03 covers residues and waste from starch manufacture, beet-pulp, bagasse, and other waste of sugar manufacture, but explicitly excludes molasses resulting from the extraction or refining of sugar. Since 'Shatamrut Chyavan' is a prepared animal feed and not a waste product, it does not fall under Chapter Heading 23.03.

The AAR refrained from answering the second question, noting that it was general in nature and not related to a specific product being manufactured or proposed to be manufactured by the applicant.

Order:

1. The classification of 'Shatamrut Chyavan' under TSH 2309 90 10 of the Customs Tariff Act, 1975, attracting NIL rate of GST as per Sr. No. 102 of Notification No. 02/2017 - Central Tax (Rate) dated 28.06.2017 is correct.
2. The question regarding classification under heading 2303 was not answered.

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