Animal feed classification turns on commercial identity; poultry meal taxable, while poultry fat falls under the specific tariff entry.

Poultry meal made from processed chicken remnants was classified under Heading 2301 10 90 as flour or meal of meat or meat offal unfit for human consumption, because it was only a raw material for animal feed and not animal feed itself. The distinction between feed and inputs for feed was treated as material, so exemption under Heading 2309 was denied and GST applied at 5%. Poultry fat, treated as a by-product of poultry meal manufacture, was classified under Heading 1501 90 00 as poultry fat other than that of Heading 0209, and GST applied at 12%. The ruling therefore accepted classification by commercial identity and processing character.

---

---

Issues: (i) Whether poultry meal is classifiable under Chapter Sub-Heading No. 2301 10 90 and liable to GST at 5%, or as an exempt concentrate/animal feed under Chapter 2309; (ii) Whether poultry fat is classifiable under Chapter Sub-Heading No. 1501 90 00 and liable to GST at 12%.

Issue (i): Whether poultry meal is classifiable under Chapter Sub-Heading No. 2301 10 90 and liable to GST at 5%, or as an exempt concentrate/animal feed under Chapter 2309.

Analysis: The product was found to be manufactured from chicken remnants such as heads, legs, intestines and feathers, which are processed, dried and powdered. On the Chapter Notes to Chapter 23, Heading 2309 covers products used in animal feeding that are obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material. However, the product described by the applicant was not itself animal feed but a raw material used for manufacture of animal feed. The distinction between animal feed and inputs for animal feed was held to be material. The product was therefore considered classifiable under Heading 2301, which covers flours, meals and pellets of meat or meat offal unfit for human consumption.

Conclusion: Poultry meal is classifiable under Chapter Sub-Heading No. 2301 10 90 and attracts GST at 5%. It is not eligible for exemption as animal feed or concentrate under Heading 2309.

Issue (ii): Whether poultry fat is classifiable under Chapter Sub-Heading No. 1501 90 00 and liable to GST at 12%.

Analysis: Poultry fat was treated as a by-product arising during the manufacture of poultry meal. The tariff scheme contains a specific entry for poultry fat under Heading 1501, covering poultry fat other than that of Heading 0209. Since the product supplied was extracted as a by-product and did not fall within Heading 0209, classification under Tariff Item 1501 90 00 was held appropriate. The corresponding rate entry prescribed GST at 12%.

Conclusion: Poultry fat is classifiable under Chapter Sub-Heading No. 1501 90 00 and attracts GST at 12%.

Final Conclusion: The ruling affirmed GST liability on both products, granting the applicant's claimed rate only for poultry fat and rejecting the claim for nil rate on poultry meal.

Ratio Decidendi: A product used as an input for animal feed is not itself animal feed for exemption purposes, and classification must follow the specific tariff heading corresponding to its true commercial identity and processing character.

---