Agricultural produce exemption applies to rail transport of fresh eggs in shell without further processing under the notification.

The exemption notification's own definition of "agricultural produce" governs transportation relief, rather than any definition under the earlier Finance Act regime. Fresh eggs in shell, including hatching eggs, were treated as products of animal rearing on which no further processing is done and which retain their essential characteristics. On that basis, rail transport of such eggs from one place in India to another falls within the exemption for transportation of agricultural produce under Serial No. 20 of Notification No. 12/2017-Central Tax (Rate).

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Issues: Whether fresh eggs, including hatching eggs, are covered by the expression "agricultural produce" under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, and whether transportation of such eggs by rail from one place in India to another is exempt under Serial No. 20 of the notification.

Analysis: The relevant notification itself defines "agricultural produce" as produce out of cultivation of plants and rearing of animals for food or raw material, on which either no further processing is done or only such processing is done as is usually done by the cultivator or producer without altering essential characteristics and making it marketable for the primary market. The entry granting exemption for transportation by rail or vessel applies to agricultural produce. The ruling also noted that the definition in the notification is the governing definition for the exemption, rather than definitions in the erstwhile Finance Act, 1994. On that basis, fresh eggs in shell, including hatching eggs, were treated as products obtained from rearing of animals and as goods on which no further processing is done.

Conclusion: Fresh eggs in shell on which no further processing is done are agricultural produce, and their transportation by rail from one place in India to another is exempt under Serial No. 20 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Final Conclusion: The advance ruling granted exemption to the rail transportation of fresh eggs without further processing by treating them as agricultural produce under the exemption notification.

Ratio Decidendi: Where an exemption notification defines "agricultural produce" for its own purposes, that definition governs the exemption, and fresh eggs in shell without further processing fall within it when they are products of animal rearing and retain their essential characteristics.

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