TaxTMI 
TaxTMI 
2018 (9) TMI 1336
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.... Mill or the Applicant) is engaged in the manufacture of "Cattle Feed in Cake Form". They are registered under GST Act with Registration No. 33ATKPJ5015H1ZX. The applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and TNSGST Rules 2017. They have sought classification of "Cattle Feed in Cake Form" manufactured by them under the SGST Act and CGST Act and availability of exemption under GST Act. 2. M/S. CPR Mill has stated that the cattle feed is manufactured from the groundnut oil cake along with a list of ingredients including husked rice with broken rice, black & broken rice, jaggery, salt and water. It is stated that the cattle feed which is being sold is meant for domestic animals as an essential raise for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes such as re-production, for production of milk meat and wool and in the case of animals, also for efficient output of work. The Applicants have produced the c....
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....ed separately, which are spread over and then jaggery, salt & water are added, mixed, thoroughly crushed and left for condensing itself into solid form and steamed to result in 'Cattle feed in Cake Form'. The breakup of the ingredients for manufacturing cattle feed (in cake form) per 100 Kgs as given by the applicant is as follows: Raw Material Kgs Price (in Rs.) Total Price (in Rs.) Groundnut Oil Cake 23 20/kg 23 x 20 = Rs. 460 Jaggery 4 30 /Kg 4 x 30 =Rs. 120 Black & Broken Rice 60 10/kg 60 x 10 - Rs. 600 Husked & Broken Rice 12 5kg. 12 x 5= Rs. 60 Salt 1 3kg. 1 x 3 = Rs. 3 Total Price Rs. 1243 Price per kg (A) Rs. 1243/100 = Rs. Expenses per kg (B) Rs. 1.30 Total Price per kg (A+B) RS.12.43 + RS.1.30 = RS. 13.73 Sale Price by Applicant per kg Rs. 14.00 Profit per kg Rs. 0.27 The Applicant has stated that though there is physical similarity between groundnut oil cake and the product they sell, both are different as they add broken rice, jiggery, salt and water to groundnut oil cake after processing, to make the final product. 5. The issue before us is to deter....
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....9 Preparations of a kind used in animal feeding. 2309.10 Dog or cat food, put up for retail sale 2309.90 Other This heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed: (1) to provide the animal with a rational and balanced daily diet (complete feed); (2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed); or (3) for use in making complete or supplementary feeds, The heading includes products of a kind 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, for example, in the case of products obtained from vegetable materials. those which have been treated to such an extent that the characteristic cellular structure of the original vegetable material is no longer recognisable under a microscope. (II) OTHER PREPARATIONS (A) PREPARATIONS DESIGNED TO PROVIDE THE WITH ALL THE NUTRIENT ELE MENTS REQUIRED TO ENSURE A RATIONAL BALANCED DAILY DIET (COMPLETE FEEDS) The characte....
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....d under CTH 2305. Going by the chapter heading notes, it can be seen that Chapter Head 2309 covers products of a kind 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. From the submissions of the applicant, it is seen that the product is not merely groundnut oil cake/residue but is manufactured by combining groundnut oil cake with broken rice, jaggery, salt and water and leaving the mixture for condensing itself into solid form and finally steamed. Further, the applicant states that the product is meant for domestic animals or birds as an essential raise for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes such as re-production, for production of milk, eggs, meat, wool or feathers and in the case of animals, also for efficient output of work. The product in hand, the 'Cattle feed' is manufactured using 'Groundnut oil cake' as a raw material along with other raw materials. Further, as per the test reports, the content of ash, protein, salt, ....