GST classification of shrimp products: water-treatment use denied exemption, while feed-additive classification required fresh reconsideration.

Classification of the petitioner's shrimp-related products under HSN 2309 depended on whether they functioned as feed, supplements or additives eligible for GST exemption, or as separately taxable preparations. Minwa and Minwa plus were found to be used mainly to control pH and alkalinity in shrimp pond water, not as feed or feed additives, so their classification under the taxable entry was sustained and the exemption claim rejected. Bio pro-enhac was described as a powder mixed with pelleted feed to improve immunity, digestion and intake, but the authority had not addressed the cited precedents or the exemption claim in a reasoned manner, so that finding was set aside and the matter remanded for fresh consideration.

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Issues: Whether the petitioner's products, namely Bio pro-enhac and Minwa and Minwa plus, were correctly classified under HSN 2309 so as to qualify for GST exemption, and whether the assessment order required interference.

Analysis: The dispute turned on whether the products were shrimp feed or supplements/additives covered by the exemption notification, or whether they were independently classifiable as vitamins, pro-vitamins, or organo-inorganic compounds taxable at 18%. On the materials placed, Minwa and Minwa plus were found to be used primarily for controlling pH and alkalinity in shrimp pond water and not as feed, supplement, or additive; therefore that product was held to fall outside HSN 2309 and outside the exemption. For Bio pro-enhac, the record showed that it was treated in the assessment as a powder mixed with pelleted feed and used to improve immunity, digestion, and intake, but the authority had not dealt with the cited precedents and the exemption claim in a reasoned manner before concluding on classification.

Conclusion: The classification of Minwa and Minwa plus under the taxable entry was sustained, but the finding on Bio pro-enhac was set aside and the matter was remanded for fresh consideration.

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