TaxTMI 
TaxTMI 
2018 (12) TMI 141
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....GST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTIONS AS PROVIDED IN ANNEXURE 1 Uttara IPMEX Private Limited is mainly engaged in trading of various poultry feed products. Aforementioned products were covered under the description "Aquatic feed, cattle feed, poultry feed, their concentrates, animal feed supplements and animal feed additives, grass, hay, straw, cotton seed oil cakes excluding other oil cakes and all varieties of de-oiled cakes" covered under entry No. 4 of Schedule A to the MVAT Act, 2002. The products under this heading were exempted. Under GST also there is similar description "Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of puIses, concentrates & additives, wheat bran & de-oiled cake" in the exemption Notification No. 2/2017-lntegrated Tax (Rate) dat....
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....defined or assigned any meaning under the said Act and Rules made thereunder. Therefore, any commodity which is sold as feed and feed supplement for specific class of animals, namely poultry, cattle, pig, fish, prawns and shrimps is covered by the entry of the First Schedule and qualifies for exemption from payment of tax under the Act. Copies of the judgments of the Hon'ble Supreme Court of India in the case of Commissioner of Sales Tax, Uttar Pradesh v/s Ram Chandra Asha Ram, reported in (2001) 123 STC 415 = 2000 (3) TMI 975 - SUPREME COURT OF INDIA and in the case of Sun Export Corporation v/s Collector of Customs, Bombay and Another, reported in (1998) 111 STC 69 = 1997 (7) TMI 117 - SUPREME COURT OF INDIA, are enclosed in support of the said contention. The description "Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake" is provided in the exemption Notification No. 2/2017-lntegrated Tax (Rate) dated 28th June, 2017, Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017 and Notification No.2/2017Union Territory Tax (Rate) dat....
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....ements. 2. Shree Baidyanath Ayurved Bhawan Ltd. 2009 (SC) = 2009 (4) TMI 6 - SUPREME COURT (The copy of said judgment is enclosed herewith):- It was held that Lal Dantmanjan is used routinely for dental hygiene. It is not 'medicament/medicine' as ordinarily medicine is prescribed by medical practitioner and is for limited use only. The same principal may be applied in the applicant's case also. That even if as per the technical description the products can be classified under any other heading but the products are finally used as poultry feed supplements. 3. CCE v. Wockhardt Life Sciences Ltd. 2012 (277) ELT 299 (SC) = 2012 (3) TMI 40 - SUPREME COURT OF INDIA (The copy of said judgment is enclosed herewith):- The apex court observed that the factors to be considered for the purpose of the classification of the goods are the composition, the product literature, the label, the character of the product and the use to which the product is put to use. It is pertinent to note that on the import invoices as well as local procurement invoices, it is specifically mentioned that "NOT FOR HUMAN/MEDICINAL USE, FOR USE IN ANIMAL FEED ONLY" Also NOC has been obtained from Government ....
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....h which can be used in preparation of poultry feed. These are additives and supplements to poultry feed. Details of goods, its ingredients and nutrition value is as tabled below - Sr.No. Name of the product Ingredients Nutritional value Remarks as to why it can be used in poultry feed 1. DL-Methionine (Feed Grade) Methionine Act as methyl donor and used in protein synthesis. Essential Amino acid. Methionine is a limiting and essential amino acid in poultry. so, need to supply through feed as feed supplement to meet standard requirement of birds for their body maintenance and egg/meat production. 2. Sodium Bicarbonate (Feed Grade) Sodium To maintain Acid- balance in body (NRC, 1994) Sodium bicarbonate used as source of sodium to maintain acid-base balance in poultry feed. Sodium required for maintains of dietary electrolyte balance in poultry feed. 3. L-lysine (Feed Grade) Lysine Essential Amino acid and used in protein synthesis. Lysine is a limiting and essential amino acid in poultry so need to supply through feed as feed supplement to meet standard requirement of birds for their body maintenance and egg/meat producti....
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.... reference purpose. Prayer: On the basis of above request you to kindly classify the product mentioned above in chapter no. 23 and provide an exemption. Request you to acknowledge the submission of the aforesaid documents and allow opportunity in person in case of any clarification or concern. 03. CONTENTION - AS PER THE CONCERNED OFFICER SUBMITTED- The submission, as reproduced verbatim, could be seen thus- It is submitted that, Issue on which advance ruling is required: QUESTION FOR ADVANCE RULING - CLASSIFICATION OF GOODS. UTTRA IMPEX PRIVATE LTD is engaged in trading of various poultry feed products But company is facing some ambiguity in correct classification of Products (which are those products is not specified in question). In companies view products shall be covered under the HSN CODES 2301, 2302, 2308, 2309 AND effectively products will be exempted. However due to technical description of the products, there can be another school of thought and the tax may be levied at different rates by revenue authorities on the said products. SUBMISSION AND VIEW OF JURISDICTIONAL OFFICER-- From the reading of application/ANNEXTURES submitted by the dealer....
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....ED AS POULTRY FEED. 5) The dealer's contention is not tenable. There are specific HSN codes and specific tax Rate entries for all these products. The products which are mentioned in the above table are not poultry feed and shown under separate entry which are taxed accordingly. Simply due to the reason of not for human consumption or not of food grade quality, these products cannot be classified under POULTRY FEED and cannot be exempted from GST. 04. HEARING The case was scheduled for 27.06.2018 for Preliminary hearing, Sh. Bhadresh Vyas, Advocate along with Sh. Nagesh Jadhav, Advocate, Sh. Milind Phatak, G.M. Accounts and Sh. Sharad Kumawat, PGM Operations and Sh. Rushabh Gondha, C.A. appeared and requested for admission of application as per details in their application. During hearing Jurisdictional Officer Sh. Prakash Pote, Commr. Of S.T. (E-701), Pune appeared and made written submissions. The application was admitted and called for final hearing on 25.07.2018, Sh. Bhadresh Vyas, Advocate along with Sh. Milind Phatak, G.M. Accounts and Sh. Sharad Kumawat, PGM Operations and Sh. Rushabh Gondha, C.A. and Sh. Arjun Madnurkar, Sr. Technical Manager appeared and made or....
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....ed under the Act. As such we may refer the Wikipedia or dictionary to understand these expressions: Definition of feed - as per dictionary to furnish something essential to the development, sustenance, maintenance, or operation of reading feeds the mind CAMBRIDGE DICTIONARY to give food to a person, group, or animal As per WIKIPEDIA Animal feed Animal feed is food given to domestic animals in the course of animal husbandry. There are two basic types: fodder and forage. Used alone, the word "feed" more often refers to fodder. Fodder "Fodder" refers particularly to foods or forages given to the animals (including plants cut and carried to them), rather than that which they forage for themselves. It includes hay, straw, silage, compressed and pelleted feeds, oils and mixed rations, and sprouted grains and legumes. Wikipedia, the free Encyclopedia Forage "Forage" is plant material (mainly plant leaves and stems) eaten by grazing livestock. SUPPLEMENT CAMRIDGE ENGLISH DICTIONARY Something that is added to something else in order to improve it or complete it; something extra OXFORD LIVING DICTIONARY: A thing added to something else in order....
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....able of providing nutrient required for animal based upon the nature of husbandry such as meat, milk, egg etc. Further we find that entry 102 of the exemption notification is not open ended. It cover those goods that are falling under chapter Heading 2301, 2302,2304,2305,2306,2308 and 2309 and which satisfy the description of goods as animal feed, supplement, concentrate and additives. These imported goods alone are eligible to avail the benefit of tax exemption under the GST ACT. It is therefore imperative to examine in detail chapter 23 of the CET - We find that Chapter 23 is related to the "Residual and Waste from the food Industries prepared Animal fodder" and therefore goods classifiable under the tariff codes as stated above are only covered and eligible for exemption benefit under entry no. 102 of the exemption notification mentioned above. Thus the benefit under Entry No. 102 is restricted as above:- We find that the details of tariff code (HSN) and its description as per tariff are as under: Sr. No.of Not.If. Chapter/Heading/sub-heading/Tariff item Description as per Notification Heading Description in Customs Tariff DETAILED HEADING/SUB-HEADING COV....
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....M OF PELLETS, OF A KIND USED IN ANIMAL FEEDING, NOT ELSEWHERE SPECIFIED OR INCLUDED 2309- PREPARATIONS OF A KIND USED IN ANIMAL FEEDING 102B 2306 Cotton seed oil cake OIL-CAKE AND OTHER SOLID RESIDUES, WHETHER OR NOT GROUND OR IN THE FORM OF PELLETS, RESULTING FROM THE EXTRACTION OF VEGETABLE FATS OR OILS, OTHER THAN THOSE OF HEADING 2304 OR 2305 2306 OIL-CAKE AND OTHER SOLID RESIDUES, WHETHER OR NOT GROUND OR IN THE FORM OF PELLETS, RESULTING FROM THE EXTRACTION OF VEGETABLE FATS OR OILS , OTHER THAN THOSE OF HEADING 2304 OR 2305 230610 - Of cotton seeds : 23061010 --- Oil-cake and oil-cake meal, decorticated expeller variety 23061020 --- Oil-cake and oil-cake meal, decorticated, solvent extracted (defatted) variety 23061030 --- Oil-cake and oil-cake meal, undecorticated, expeller variety 23061040 --- Oil-cake and oil-cake meal, undecorticated, solvent extracted (defatted) variety 23061090 --- Other 230620 - Of linseed : 23062010 --- Oil-cake and oil-cake meal, expeller variety 23062020 --- Oil-cake and oil-cake m....
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....-- Other : 28352910 --- Magnesium phosphate, monobasic 28352920 --- Magnesium phosphate, dibasic 28352930 --- Magnesium phosphate, tribasic 28352940 --- Sodium hexametaphosphate 28352990 --- Other - Polyphosphates : 28353100 -- Sodium triphosphate (sodium tripoly-phosphate) 28353900 -- Other From the above table we find that the description of goods against chapter Heading 2835 as mentioned at Sr. No. 105 of exemption notification 2/2017 Integrated Tax (Rate) dated 28/6/2017 covers only Di calcium Phosphate (DCP) of animal feed grade confirming to IS specification No. 5470:2002. As such applicant product Mono calcium phosphate is not covered by the scope of exemption notification No. 2/2017-Integrated Tax (Rate). In view of above discussion and on perusal of chapter 28 and 29 of Customs Tariff Act we are of opinion that the products referred by the applicant in the application will not be covered under Entry- 102 but would be covered under chapters like 28 and 29. Those chapters are related to Organic and inorganic chemicals. Chapter 28 and 29 are not covered under exemption notification n....