GST exemption for cotton seed oil cake used as cattle feed confirmed; demand and appropriation were unsustainable.

Cotton seed oil cake supplied as cattle feed was treated as exempt under the GST exemption notification because the product's end use as cattle feed was undisputed, and the purchaser's later use could not determine the tax treatment of the supply. Following the coordinate bench ruling on the same issue, the demand was unsustainable and the GST already paid and appropriated against that demand had to be refunded.

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Issues: Whether cotton seed oil cake used as cattle feed was exempt from GST under the relevant exemption notification, and whether the refund of GST paid and appropriated against the demand was liable to be granted.

Analysis: The issue was already covered by a coordinate bench decision holding that cotton seed oil cake, when supplied as cattle feed, fell within the exemption granted by the GST exemption notification. The reasoning proceeded on the basis that the end use of the product as cattle feed was not disputed and that the purchaser's subsequent use could not govern the tax treatment of the supply. In view of that binding and identical conclusion, the challenged demand and consequential appropriation could not be sustained.

Conclusion: The supply of cotton seed oil cake was exempt, and the petitioner was entitled to refund of the GST paid and appropriated against the demand.

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