TaxTMI 
TaxTMI 
2020 (7) TMI 473
X X X X Extracts X X X X
X X X X Extracts X X X X
....advance Ruling on the confirmation of classification of the product -Preparation of a kind used in Animal Feeding - Bio Processed Meal" falling under HS Code 23099090. The applicant has provided the following process for manufacture of said product. The advance Ruling in this matter was pronounced on 02.01.2020 = 2020 (3) TMI 441 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH. The order, however, suffers from certain errors, as pointed out by the applicant vide their application dated 28/29.01.2020 and dated 10.02.2020, that are apparent on the face of the records. They need to be rectified. The Authority therefore proceeds to examine the facts as pointed by the applicant 3. Brief Facts of the Case: 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 sectio....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (ii) The protein content of the feed grade is less that 50% and not fit for human consumption. During the manufacturing process soya meal undergoes through fermentation process. (iii) The process uses biotechnology to convert protein structure to smaller molecular weight to increase efficiency digestion and absorption. (iv) It also breaks down and reduce antigens or anti-nutrient substance due to fermentation. (v) It is a high quality soya protein source of animal such as your animals in Aquatic feed including shrimp feed, poultry feed. Cattle feed & Pig feed. (vi) It focuses on the use of protein sources in animal feed by replacing fish meal, skim milk, milk replacer. (vii) Fermented soya protein can be use in the various kind of feeds, such as Poultry, Aqua, cattle, Pig feed etc. 3.8 The appellant 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 & Pig feed , including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake (other than rice bran) falling under heading 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1975, is a feed grade mono calcium phosphate and being marketed accordingly - Thus it is fully covered under Entry 102 of Notification No. 2/2017-C.T. (Rate) -Exemption admissible. 4. Question raised before the Authority:- The following questions have been posted before the Authority: Whether the product "preparation of a kind used in Animal Feeding Bio Processed Meal" will fall under HS Code 23099090 and applicable rate of GST on said product shall be NIL as per Notification 02/2017 - CT (Rate) dated 28.06.2017? 5. Officer's View Point: The Superintendent (Tech.), CGST & Central Excise. Division Dewas vide his letter F.No. IV(16)100/Misc/Tech/CGST/17-18/Pt.II/1409 dated 07.11.2019, has forwarded department's view point in res he issue raised in the application. It is submitted in the report that the statement of relevant facts mentioned in the application by 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s used for consumption of general public namely soya flakes / Grits, Soya Flour, Soya lecithin, Soya Protein / TVP etc. They are also engaged in manufacturing various products meant for animal feeding namely GMO Soyabean meal, non GMO Soya Grits etc. They are also manufacturing soya products for industrial use. The product meant for industrial use and far consumption of general public are leviable to various rates of GST whereas the applicant has claimed the chapter heading of 23099090 which is exclusively meant for animal feed attracts nil rate of duty. In such a situation a critical analysis is required to establish that the said product is meant only for animal feed 7.5 The applicant has claimed the classification under HSN code 23099090 which is exclusively meant for-animal feed and attracts nil rate of GST. The chapter note 2309 reads as under : "Note : heading 2309 includes product of a kind used in animal feeding, not elsewhere specified or included obtained by 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g 23099090. The applicants' withdrawn of the comment that "and not fit for' human consumption", further substantiates our contention. 7.8 As the applicant has, failed to submit any evidence to support their claim of chapter heading 23099090 fur their product, and therefore the applicant is not entitled to claim NIL rate of duty under as per Notification 2/2017-CT (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act. We hold accordingly." 8. RULLING of earlier order dated 02.01.2020 "(Under Section 98 of Central Goods and Services Tar Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017) 1. The product "Preparation of a kind used in Animal Feeding - Bio Processed Meal" is not entitled to classify under HS code -23099090 and therefore not entitled for the benefit of Notification No.02/2017-CT(Rate) dated 28.06.17 and corresponding notification issued under MPGST Act. 2. This ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104 (1) of the GST Act." 9. Submission of applicant under Section 102 of CGST Act, 2017 and Record of personal hearing dated 27.02.2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ror cannot be said to be apparent on face of if one has to travel beyond record to see whether judgment is correct or not - An error apparent on face of record means an error which strikes on mere looking and does not need long drawn-out process of reasoning on points where there may conceivably be two opinions - Such error should not require any extraneous matter to show its incorrectness and it should be so manifest and clear that no court would permit it to remain on record - Section 254(2) of Income Tax Act, 1961. Rectification of mistake - Non-consideration of a decision of Jurisdictional Court or of the Supreme Court can be said to be a mistake "apparent from record" which could be rectified under Section 254(2) of Income Tax Act, 1961. 10.1 In terms of the Section 102 of CGST Act, 2017, the applicant requests authority of advance ruling to amend the order passed under Section 98 of the CGST Act, 2017 as following error are apparent in the order delivered by authority of advance ruling. (a) The authority has taken view that the applicant has replaced 52% in place of 50% and removed the part "and not fit for human consumption" in their additional submission on 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....consumption' is concerned, the applicant wishes to submit that the said words pertain to the raw material of the product under consideration i.e. 'Bio Processed Meal'. It has got no bearing on the use of their finished product and classification of their final product. The final product will only be used for animal feeding and not for any other purpose. The final product will not be suitable for human consumption because of presence of higher bacterial counts. (f) The aforesaid text [starting line of para 15(f) as mentioned above] is related to for the raw material to be used in the manufacture of finished products. The authority for advance ruling by mistake took this plea that the words 'the protein content of the feed grade is less than 52% 'were meant for finished products whereas a continuous reading of Para 15(f) "The raw material for the preparation of bio - processed meal is soya bean meal feed grade falling under HS code 23040030. The protein content of the feed grade is less than 50% and not fit for human consumption" clearly indicates that this part of the submission relates to raw materials and not for the finished products as observed by the authority of advance ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er referred to as the applicant) is engaged in manufacturing and export of various soya processed food, used for human as well as animal consumption. The applicant is having GST registration with GSTIN 23AABCV1297N3ZY. However, fact remains that the final product of the applicant for which confirmation of classification has been sought will be produced in their new unit a Plot Number 112, Industrial Area No.1, Dewas (MP) 455001. Though the GST registration 23AABCV1297N3ZY has been mentioned correctly but incorrect address has been mentioned. Further it would be worth to mention that the new registration 23AABCV1297N3ZY obtained by the applicant for the new unit at Plot Number 112, Industrial Area No.1, Dewas (MP) 455001 on 30.03.2019 This unit is not engaged in manufacturing and export of various soya processed food, used for human as well as animal consumption as mentioned in para 1 of the order. (ii) The aforesaid apparent mistake has resulted to incorrect information regarding new unit of the applicant as mentioned in para 7.4 (discussion and finding portion) of the ruling referred above. The new unit of the applicant will only manufacture the finished product which wil....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed to finished product whereas it should have been considered for raw materials which has got no bearing on the finished product. 11.4 We have gone through carefully the application filed by the applicant under Section 102 of the CGST Act, 2017 and observed that such mistake has occurred on face of the record of the order 01/2020 dated 02.01.2020 = 2020 (3) TMI 441 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH as such we proceed to amend the order due to following reason : (a) The products being manufactured by the applicant by various processes like fermentation etc. will only be used for animal feeding and not for any other purpose. The manufacturing process also endorses that the finished product being manufactured from raw material having protein content the feed grade is less than 52% will only be used for animal feeding and not for any other purpose as declared by the Applicant. (b)The new unit is not engaged in manufacturing any product viz. soya flakes / Grits, Soya Flour, Soya lecithin, Soya Protein / TVP, GMO Soyabean meal, non GMO Soya Grits etc. as mentioned in para 7.4 of the earlier order dated 02.01.2020. (c) The various judgements quot....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er 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 Others 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 02/2017-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, 2305, 2306, 2308, 2309 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 11.8 From above it is derived that the Chapter heading 230990....