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TaxTMI 
TaxTMI 
2020 (9) TMI 590
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....ound in three different forms: (a) Maize Bran dry (b) Maize Bran wet (c) Maize Bran(CSL mixed); that Maize Bran consists of the bran coating removed in the early stages of wet milling and is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemiceluloses, 15-18% cell cellulose, 3-6% oil, and 1-2% other components; that maize bran stream coming from dewatering presses contains about 30 to 50% solids; that maize bran is usually a mixture of the bran fraction and other by-products and is, therefore, a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed; that the applicants supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix maize bran with other maize processing by-products; that prior to the GST regime, they were clearing 'Maize Bran' for home consumption by classifying the same under Heading 23021010 of Central Excise Tariff Act, 1985 and have submitted ER1 returns for the months of April, 2017 to June, 2017 indicating rate of duty of Maize Bran as NIL. 2. The applicant further stated that the relevant entry of their product is....
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....er Sr.No.103A of Notification No.1/2017 or chargeable to NIL rate as per Sr.No.102 of Notification No.2/2017? " 4. Regarding the interpretation of law/facts in respect of the question on which advance ruling is required, the applicant has quoted Sections 95 to 106 of the CGST Act, 2017 and stated that the question on advance ruling put forward by him is in respect of determination of whether the liability to pay tax on any goods or services or both, and also the applicability of a notification issued under the provisions of the GST Act is covered under Section 97(b) and (e) and therefore the applicant satisfies the criterion required for filing the application for advance ruling; that the maize bran is supplied by them to local farmers and manufacturers of the cattle feed for use as cattle feed only; that maize bran is one of the most important cereals used in animal/cattle feed and the same being rich in nutrients forms a major ingredient for cattle feed, is produced in wet or dry form both and is widely used in complete feeds for dairy, beef cattle, poultry, swine and pet foods; that since the same is understood as a cattle feed in common parlance and is therefore bought and s....
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....ission given by the applicant, we find that they are engaged in the manufacture and supply of Maize starch and its derivatives in their plant at Village Dalpur, Himmatnagar, Gujarat and during the course of manufacture of the said product, Maize Bran is produced as a by-product by corn wet milling. The applicant has also stated that (i) Bran is the hard-outer layers of cereal grain and along with germ, it is an integral part of whole grains and is often produced as a by-product of milling during the production of refined grains. (ii) Maize Bran is found in three different forms: (a) Maize Bran dry (b) Maize Bran wet (c) Maize Bran(CSL mixed) (iii) Maize Bran consists of the bran coating removed in the early stages of wet milling and is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemiceluloses, 15-18% cell cellulose, 3-6% oil, and 1-2% other components (iv) Maize bran stream coming from dewatering presses contains about 30 to 50% solids. (v) Maize bran is usually a mixture of the bran fraction and other by-products and is, therefore, a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed; that the applican....
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.... Further, Explanation (iii) and (iv) of the said Notification reads as under: (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 11. On going through the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), it is observed that Bran falls under the Sub-heading 2302 of the Customs Tariff Act, 1975. The said entry as appearing in the Customs Tariff is described hereunder: 2302 BRAN, SHARPS AND OTHER RESIDUES, WHETHER OR NOT IN THE FORM OF PELLETS, DERIVED FROM THE SIFTING, MILLING OR OTHER WORKING OF CEREALS OR OF LEGUMINOUS PLANTS 2302 10 - Of maize (corn) : 2302 10 10 - Maize bran 2302 10 90 - Others 2302 30 00 - Of wheat 2302 40 00 - Of other cereals 2302 50 00 - Of leguminous plants On going through the abo....
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....2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake(other than rice-bran) It can therefore be seen, that the products which were left out from Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 have found mention in Sr.No.102 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017. 14. First of all, we need to know the definition of Maize bran. As per dictionary, Maize Bran is defined as under: "Maize Bran is a by-product of various maize processing industries, including starch and ethanol production, and the production of maize-based foods. In the case of ethanol production, maize bran is defined as the mixture of the bran fraction and distillers soluble. Maize bran is used as a major supplement for cattle feed." From the above, it is seen that Maize Bran is used as a major supplement for cattle feed. The word 'supplement' is defined in dictionary as "a thing added to something else in order to complete or enhance it." Therefore, Maize Bran is a product which is added to cattle fee....
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....oncluded that the maize bran sold by the applicant is used by the above company as in input in the manufacture of cattle feed but is not a cattle feed by itself. It is also seen that 'Maize Bran' is specifically mentioned in Sub-heading No.23021010 of the First Schedule to the Custom Tariff Act, 1975 (51 of 1975) and the word 'Bran' is specifically mentioned in Sr.No.103A of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017. In view of the above, we are of the opinion that the product 'maize bran' does not warrant classification under Sr.No.102 of Notification No.2/2017-Central Tax (Rate) as the product does not classify as 'cattle feed' and is correctly classifiable as 'Bran' under Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017. 15. Further, the applicant has mentioned in his submission that in pre-GST era, Maize Bran was cleared by him under Chapter Sub-heading No.23021010 of the Central Excise Tariff Act, 1985 with NIL duty and that the same are reflected in the monthly ER-1 returns submitted by him for the months of April, 2017 to June, 2017. However, on going through the said ER1 returns, no mention of Maize Bran is found in them. The appl....