TaxTMI 
TaxTMI 
2018 (10) TMI 1876
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.... humidity of required degree. It is generally storing following goods: 1. Fruits and vegetables, 2. Agriculture produce; 3. Kirana items including dry fruits. 4. Eggs, 5. Other miscellaneous goods. The said facility is used for cold storage of goods on behalf of others, both registered and unregistered person under the Central Goods and Service tax Act and The integrated Goods and Services Tax Act located in the state of Haryana and other states, it normally charges service charge to its customers which is based on the number of bags and the number of months or part thereof for which such bags are stored. Question(s) on which advance ruling is required 1. Clause (i) of the entry at S.N 24 of the table appended to notification number 11/2017-Central Tax (Rate) dated 28.6.2017 states that support services to agriculture, forestry, fishing; animal husbandry falling under the heading 9086 will attract Nil rate of tax. As per clause (i) (e) of the explanation to this entry support services to agriculture, forestry, animal husbandry means services relating to agriculture produce by way of loading, unloading, packing, storage or wareho....
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....ing, labelling of fruits and vegetables which do not-change or alter the essential characteristics of the said fruits or vegetables will attract nil rate of tax. In this regard, advance ruling is required on following matters; A. Whether services by way of pre-conditioning or pre-cooling includes service by way of cold storage, deep freeze storage and controlled atmosphere storage which does not change or alter the essential characteristics of said fruits or vegetables? B. in case, services by way of pre-conditioning or pre-cooling does not include services by way of cold storage, deep freeze and controlled atmosphere storage, whether or not such services in relation to fruits or vegetables will be eligible for nil rate of tax under clause (1) (e) of entry at S.N 24 under the heading 9986 subject to compliance with conditions specified therein as fruits and vegetables are also agriculture produce? C. Whether fruits or vegetables for the purpose of this entry means only fresh fruits or vegetables or does it also include dry fruits, cut fruits, frozen fruits, processed fruits and cut vegetables, dried vegetables, processed vegetables in view of the fact ....
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....rvices and other miscellaneous services, whether the storage and warehousing of goods get covered in section 7 under financial or related service or it will get covered in section 8 under business and production services and the relevant service code thereof or will it be covered in section 9 relating to other miscellaneous services? 4. Attention is invited to section 12 of the integrated Goods and Service Tax Act. Sub section 2 of the said section provides that the place of supply of services, except the services specified in sub sections 3 to 14 (a) made to a registered person shall be the location of such person; (b) made to any person other than a registered person shall be, (i) the location of the recipient where the address on record exists and (ii) the location of the supplier of services in other cases. Section 12(3) (a) stipulates that place of supply of services directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or coordination of construction work and an....
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....applicability of notification issued under the Act. 16. After detailed discussions, the decision- of the Authority on the ruling to be given was reserved, which is being released today. Discussion and finding of the authority 17. The first question put by the applicant seeks an explanation to the term 'warehousing' as appearing in clause (i) (e) of the explanation in entry at Sr. No. 24 of the notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 corresponding notification no. 46/ST-2 Dt. 30.06.2017 under the HOST Act, 2017. 18. Since, the warehousing services are support services and covered in SAC 99672, it includes cold storage, deep freeze storage and controlled atmosphere storage services also unless an exception is provided in the entry. 19. It had also been argued and discussed whether processing done on the agriculture produce by a person other than the cultivator will take away the benefit of nil rate to support services in relation to agricultural produce as per entry no, 24 of the said notification. A plain reading of clause (vii) of explanation 4 to the said notification clearly mention that 'such processing is done as is usually do....
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....he entry 24 (ii) of the said notification also include dry fruits, cut fruits, frozen nuts, processed fruits, and cut vegetables, dried vegetables, processed vegetables and the like. As discussed in para above the pre-conditioning or pre-cooling processes etc. are usually done at the farm gate on the fresh harvested fruits and vegetables. The category of the products cited by the applicant are such on which certain processing has already been done. Such already processed produce will not require the pre-conditioning or pre-cooling processes to be done again and therefore, to our mind the entry takes in its scope fresh fruits and vegetable only. 23. The third question posed before the Authority is in respect of understanding the scope of SAC 9967 (supporting service in transport) in relation to the agriculture produce as mentioned at Sr. No. 24 of the said notification. It is noticed that the benefit of nil rate is provided to only those support services to agriculture which are specifically mentioned at Sr. No. 24 of the said notification. It does not cover the services of transport of agriculture produce and therefore the applicable SAC on such services shall be 9967 irrespe....
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....tivator or the producer can make first sale of their produce. The agricultural produce on which certain process has been rendered which alters its essential characteristics are generally sold in the secondary markets like stores, kiryana shops etc. Turmeric, red chilly in whole are generally marketed in the primary markets and once converted in powdered form these are sellable in the secondary market. 2A. Whether services by way of pre-conditioning or pre-cooling includes service by way of cold storage, deep freeze storage and controlled atmosphere storage which does not change or alter the essential characteristics of said fruits or vegetables? Ruling: In view of the discussions and findings in para 21 above it is amply clear that the pre-conditioning or pre-cooling processes are rendered on the agriculture produce at the farm gate before being transported to either the markets or for storage purpose. Therefore, these services of preconditioning or pre-cooling processes cannot be regarded as cold storage, deepfreeze or controlled atmosphere storages but the benefit of nil rate on such services shall be available as long as the conditions and restriction as provided und....