TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 688
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....uction of refined grains. Maize Bran is one such inevitable by-product of various maize processing industries. 2.2 The production of Maize bran amounts to 13% of total production of the Applicant. It is usually found in three different forms as mentioned below : a) Maize Bran dry b) Maize Bran wet c) Maize Bran (CSL mixed) 2.3 Maize Bran theoretically consists of the bran coating removed in the early stages of wet milling. 2.4 Maize Bran is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemicelluloses, 15-18% cellulose, 3-6% oil and 1-2% other components. A maize bran stream coming from dewatering process contain about 30 to 50% solids. The maize bran is usually a mixture of bran fraction and other by-product and is therefore, a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed. 2.5 The Applicant 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-product. 2.6 The applicant further submitted that under the Central Regime they were classifying the Maize bran under CTH No. 2....
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.... (Rate) dated 28.06.2017 effective rate of GST was provided as NILi.e. specified goods were exempt from whole of CGST. Sr. No. 102 of the Not. No. 02/2017-CT (Rate) Dated 28.06.2017 is re-produced as under : 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 3.8 Further, the applicant submitted that thus goods excluded under Sl. No. 103A of the Not. No. 01/2017-CT (Rate) has been granted exemption under Sl. No. 102 of the Not. No. 02/2017-CT (Rate) dated 28.06.2017. Thus, as per the said Not., cattle feed are chargeable to NIL rate of duty. 3.8 The applicant submits that presently they are supplying the Maize Bran by charging GST at the rate of 5%. (A copy of the sample invoice is submitted). 4. Regarding the interpretation of law/facts in respect of the question on which advance 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....
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....xemptions, even if the exemption so chosen is generic and not specific. 7. Accordingly, the applicant sought the Advance Ruling on the following, Whether Maize Bran which is a cattle feed is chargeable to CGST @2.5% under Sl. No. 103 A of Not. No. 01/2017-CT (Rate) or Chargeable to NIL rate as per Sl. No. 102 of Not. No. 02/2017. Personal Hearing 8. Personal hearing in the matter was held on 11-06-2020. Shri Yashashvi Jain, Chartered Accountant appeared on behalf of the applicant and re-iterated the submission made in the Application. DISCUSSION & FINDINGS 9. We have considered the submissions made by the applicant in their application for advance ruling as well as the arguments/discussions made by their representative Ms. Yashasvi Jain at the time of personal hearing. We have also considered the issues involved on which Advance Ruling is sought by the applicant. 10. At the outset, we would like to state that the provisions of both the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017 are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGS....
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....as also submitted a copy of sample invoice vide which they have removed Maize Bran paying GST of 5%. Further, they have also quoted a few citations/judgements to support their contention. 12. In order to determine the tax liability on the supply of 'Maize Brans' by the applicant, we will be required to refer to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 containing the sub-headings as well as the rates of Central Tax GST applicable to various goods which are covered under 6 schedules as under: (i) 2.5 per cent. in respect of goods specified in Schedule I, (ii) 6 per cent. in respect of goods specified in Schedule II, (iii) 9 per cent. in respect of goods specified in Schedule III, (iv) 14 per cent. in respect of goods specified in Schedule IV, (v) 1.5 per cent. in respect of goods specified in Schedule V, and (vi) 0.125 per cent. in respect of goods specified in Schedule VI 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 ....
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.... which entry No.103A was inserted) which reads as under: S.No. Chapter/Heading/ Subheading / Tariff item Description of goods 103A 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 [other than 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]"; Also, Sr.No.102 of Notification No.2/2017-Central Tax(Rate) dated 28.06.2017 which specified goods in respect of which effective rate of CGST as NIL( as amended vide Notification No.7/2018-Central Tax (Rate) dated 25.01.2018) reads as under: Sr. No. Chapter Heading/Sub-heading/Tariff Item Description of Goods 01. 2301, 2302, 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.1/20....
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....ant by themselves have contradicted their contention through their submission. 17. We have also gone through the copy of the sample invoice given by the applicant which is detailed hereunder: Invoice no.& dt. Name of the buyer Name of the product Classification of the product Quantity Rate of SGST + CGST 006617 dated 06.08.2018 Gopal & Co., Kathwada, Gujarat, India. Wet Bran 23021010 10.9510 tonnes 2.5% SGST + 2.5% CGST It can be seen from the above, that the applicant has supplied 10.9510 tonnes of Wet Bran to Gopal & Co., Kathwada, Gujarat, India. It can be seen from the above that applicant is classifying their product "Wet Bran" and not as "cattle feed". 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' ....