TaxTMI 
TaxTMI 
2021 (1) TMI 433
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Bran dry (b) Maize Bran wet (c) Maize Bran(CSL mixed); that Maize Bran theoretically consists of the bran coating removed in the early stages of wet milling; that Maize Bran is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemicelluloses, 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 the 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. 2.1 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 clearance of Maize Bran under heading 2302 at NIL rate of duty. 2.2 The applicant further stated that the relevant ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion on which advance ruling is required, as under: "Whether Maize Bran, which is a cattle feed, is chargeable to CGST @2.5% under Sr.No.103A of Notification No.1/2017 or chargeable to NIL rate as per Sr.No.102 of the 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 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; that it is produced in wet or dry form both; that thus, as Maize Bran is high in certain key nutrients, makes it the 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 sold as cattle feed in the market, same is rightly eligible for exemption under Sr.No.102 of Notification No.2/201-7-Central Tax (Rate). 4.1 The applicant has relied upon the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the time of personal hearing held through Video Conferencing on 09.07.2020, the Authorised Representative of the applicant, Ms. Yashasvi Jain, reiterated the facts as stated in the Application and mentioned herein above. DISCUSSION & FINDINGS: 6. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. 7. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 8. On going through the submission 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 Morgar, Taluka-Himatnagar, Bhachau, Kutchh, Gujarat and during the course of manufacture of the said product, Maize Bran is produced as a by-product b....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... question for the purpose of advance ruling: "Whether Maize Bran which is a cattle feed is chargeable to CGST @ 2.5% under Sr.No.103A of Notification No.01/2017 or chargeable to NIL rate as per Sr.No.102 of Notification No.2/2017?" 10. In order to determine the tax liability on the supply of 'Maize Brans' by the applicant, we are 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, Explanations (iii) and (iv) of the said Notification read as under: (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted 28.06.2017(hereinafter referred to as the said notification), we find that the same appears at entry No.103A (after amendment of the said notification vide Corrigendum No.2 dated 12.07.2017 vide 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]"; 13.1 We also find that Notification No.2/2017-Central Tax(Rate) dated 28.06.2017, as amended by Notification No.7/2018-Central Tax (Rate) dated 25.01.2018) specified goods in respect of which effective rate of CGST is NIL. Relevant Entry at Sr.No.102 of said Notification is extracted herein below: Sr.No. Chapter Heading/Sub-heading/Tariff Item Description of Goods 102 2301, 2302, 2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e directly fed to cattle but be mixed with the cattle feed before feeding it to the cattle. In view of the above, it can be seen that Maize Bran in itself is not a cattle feed but is a major ingredient used in the manufacture of cattle feed as submitted by the applicant. Thus, the applicant by themselves have contradicted their contention through their submission. 15. We have also gone through the copy of the sample invoice given by the applicant, details thereof are as below: Invoice no.& dt. Name of the buyer Name of the product Classification of the product Quantity Rate of SGST + CGST IND/1819/20455 dtd.06.07.2018 Dutt Industries Visnagar Cattle Feed Bran Dry 23021010 15.79 MT 2.5% SGST +2.5% CGST It can be seen from the above, that the applicant has supplied Cattle Feed Bran Dry to M/s Dutt Industries, Visnagar, a manufacturer, who is engaged in the manufacture of cattle feed (as per the data available online). Thus, for the above manufacturer, maize bran is just an input/ingredient, which is used in the manufacture of their final product i.e. cattle feed. It can, therefore, be concluded that the maize bran sold by the applicant is use....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Medical Care v/s UOI-2007 (209) ELT 321 (SC) = 2007 (2) TMI 2 - SUPREME COURT, it was held that if the applicant is entitled to benefit under two different Notifications or under two different heads, he can claim more benefit and it is duty of authorities to grant such benefits, if applicant is entitled to such benefit. (vi) In the case of HCL Ltd. v/s Collector of Customs, New Delhi-2001 (130) ELT 405 (SC) = 2001 (3) TMI 971 - SC ORDER, it was held that when pluralities of exemptions are available, the assessee has the option to choose any of the exemptions, even if the exemption so chosen is generic and not specific. 17.1 On going through the above case laws, it is observed that the same have been quoted for the purpose of using the interpretations contained therein to support their contentions viz. (i) Classification is to be based on statutory definition, if any, and in the absence thereof on trade or common parlance; (ii) Goods are to be classified according to their popular meaning as understood in the commercial sense and not as per the scientific/technical meaning; (iii) It is a well settled legal proposition of law that liberal const....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... greaves 4.2 A number of raw materials, such as fish meal falling under heading 2301, meat and bone meal also falling under heading 2301, oil cakes of various oil seeds, soya seeds, bran, sharps, residue of starch and all other goods falling under headings 2302, 2303, 2304, etc. are used to manufacture/formulation of, aquatic feed, animal feed, cattle feed, poultry feed etc. These raw materials/inputs cannot be directly used for feeding animal and cattle. The Larger Bench of the Hon'ble Supreme Court in the case of the Commissioner of Customs (Import), Mumbai vs. Dilip Kumar [2018 (361) E.L.T 577] = 2018 (7) TMI 1826 - SUPREME COURT has laid down that inputs for animal feed are different from the animal feed. Said S. No. 102 covers the prepared aquatic/ poultry/cattle feed falling under headings 2309 and 2301. This entry does not apply to raw material/inputs like fish meals or meat cum bone meal (MBM) falling under heading 2301. 4.3 It is accordingly clarified that fish meals, meat cum bone meal (MBM) etc., attract 5% GST under S. No. 103 in notification No. 1/2017- Central Tax (Rate) dated 28.6.2017." 18.1 It can be seen from above clarification that inputs fo....