TaxTMI 
TaxTMI 
2021 (11) TMI 388
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.... CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017 in FORM GST ARA-01, discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a Partnership Firm registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The Applicant is in the business of freight services and also holds lease rights of space/containers in Indian Railways. 3. The applicant has sought advance ruling in respect of the following questions: a. Whether eggs / hatcheries are classified under the Agricultural Produces/ Products? b. Ap....
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....n case of transportation of eggs by Rail" and has submitted a copy of the same. PERSONAL HEARING / PROCEEDINGS HELD ON 08.09.2021 6. Sri Nagaraj. M.R., Chartered Accountant & Authorised Representative of the applicant appeared for personal hearing proceedings held on 08.09.2021 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the correspon....
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....ection (2) of Section 97 of the CGST Act, 2017, the question on which advance ruling is sought shall be in respect of (a) classification of any goods or services or both (b) applicability of a notification issued under the provisions of Act. 3.2 In the instant case, the applicant is engaged in transportation of goods by rail and vide the present application, they have sought advance ruling in classification of Eggs / hatcheries whether covered under 'Agricultural produces'. The Notification No.12/2017-Central Tax (Rate) dated 28-06-2017, under Sl.No.20, exempts payment of any tax on transportation of Agriculture produces by rail or a vessel. As per the definition given under the said Notification, under Para 2(d) ....
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....ne by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. Therefore, 'eggs' and hatchery produce cannot be considered as 'Agriculture produce'. Kind attention is invited to clarification provided vide para 4.4.3 of Education Guide provided by the CBIC, wherein to query as to "What is the meaning of agricultural produce?" it is clarified as under: Agricultural produce has also been defined in section 65B of the Act which means any produce of agriculture on which either no processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. It also i....
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....icable to services related to hatchery or produce of hatchery. The difference between the agriculture produce in real sense vis-a-vis the hatchery and eggs thereof need to be given due consideration before arriving at a conclusion. 3.7 This office is of the view that Hatchery and eggs of hatchery fall beyond the scope of agriculture produce taking into account the intension of the notification. It is also to mention that nowhere in the notification or Act or Rule or Circular, it is clarified that egg and hatchery products are agriculture produce and hence exempted from payment of GST." 10. The applicant is engaged in the business of providing freight services and holds lease rights of space/containers in Indian railways. The app....
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...." for the purposes of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017. The clause 2 of the said Notification reads as under: "2. Definitions.- For the purposes of this notification, unless the context otherwise requires, - (a) . . . . (b) . . . . (c) . . . . (d) "agricultural produce" means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by the cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market;" 14.....