2020 (3) TMI 441

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.... 3.1 Soybean meal (raw material) with 12% moisture is conveyed to buffer tank after removal of metal impurities. All raw materials after measurement are sent into batch mixer for mixing, and then mix with liquid bacteria/Enzymes in the continuous mixer through a variable frequency screw conveyor which regulates its flow rate. Moisture content is adjusted to around 40% -50% in the continuous mixer. Finally Soybean meal after inoculation and mixing is delivered to fermentation section. 3.2 After Inoculation Soybean meal through conveying equipment is transported to fermentation bed & kept there for 60-72 hours. The thickness of the material deck is designed to be within 75-150mm range and may be adjusted according to actual circumstances. The processing capacity of fermentation bed will also be adjusted by changing the thickness of material layer. During the fermentation process agitation of material may be needed according to the process design. After the fermentation process the material is discharged and collected by a belt conveyor to the drying section. In the conveying process, some material may be fall off the conveyor and needs to be cleaned manually. 3.3 The fermented Soy....

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....y, Aqua, cattle, Pig feed etc. 3.8 The applicant has cited that Notification 02/2017-CT(Rate) dated 28.06.17 where it is mentioned that 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 (other than rice bran) falling under heading number 2309 of GST Tariff attracts nil rate of GST. 3.9 The applicant has also cited that explanatory Note to Heading 23.09 applies, mutatis mutandis, to this heading. 23.09 - 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. As per The Explanatory Note the product "preparation of a kind used in animal feeding - bio processed ....

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....the party appears to be correct. 6. Record of Personal Hearing: Shri C.L. Dangi, Advocate and Shri Ravi Shankar Choudhary Advocate of the applicant, has appeared for Personal Hearing and reiterated the points mentioned in their written submission dated 26.07.2019, 14.10.2019 and 18.11.2019. 7. Discussion & Findings: 7.1 We have carefully considered the submissions made by the applicant in the application, the pleadings on behalf of the Applicant made during the course of personal hearing. We find that the issue raised in the Application is squarely covered under Section 97(2)(a)/(b) of the GST Act 2017 being a matter related to classification of the product, being produced by the applicant and applicability of a cited Notification. The applicant have complied with the all the requirements for filing this application as laid down under the law. We therefore admit the application for consideration on merits. 7.2 Going through the application of the party, it is found that the applicant has sought confirmation of classification of their product to whom they term it "Preparation of a kind used in Animal Feeding - Bio Processed Meal" and also informed that the said product falls un....

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....or included, obtained processing vegetable or animal materials to such an extent that they have lost the essential characteristic of the original material, other than vegetable waste, vegetable residues and by - products of such processing. Further the tariff heading 23099090 is detailed as under: 23.09 Preparations of a kind used in animal feeding. 2309.10 Dog or cat food, put up for retail sale 2309.90  Other 23099010 Compounded animal feed 23099020 Concentrates for compound animal feed   Feed for fish (prawn etc.) 23099031  Prawn and shrimps feed 23099032  Fish meal in powdered form 23099039 Others 23099090 Others Further, the Notification 17-CT(Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act has exempted intra-State supplies of goods, the description of which is specified in column (3) of the Schedule appended to the said notification. Falling under the tariff item, subheading, heading or Chapter, as the case may be, as specified in the corresponding entry: Sl.No Chapter heading / sub-heading / Tariff item Description of goods 102. 2302, 2304, 2304, 2306, 2308, 2309 Aquatic including shrimp feed ....