TaxTMI 
TaxTMI 
2022 (1) TMI 149
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....a similar provision under the CGST Act or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE 3.1 M/s Adani Wilmar Limited (the applicant), is a person registered under the provisions of CGST Act (the Act) and MP GST Act read with section 20(v) of IGST Act, vide GSTIN: 23AABCA8056G1ZX, having principal place of business, at Vidisha. 3.2 The applicant is engaged in the business of manufacturing and sale of Soya Oil, wherein Soya DOC, Soya husk etc are obtained through the process of solvent extraction of soya seed at the factory located at Vidisha. Soya oil is principal product of process of solvent extraction of Soya seed. During the process of manufacture, many by-products and waste products are also obtained. 3.3 Soya husk resulting from extraction of soyabean oil is sold to the customers by the applicant company. The Soya husk so supplied by the applicant is used by the customers as input / ingredients to Cattle feed. 3.4 There are two different perceptions with regard to taxability of Soya husk are prevalent in the market and in trade circles as under:- (i) Soya husk resulting from the extraction of Soyabean Oil is NIL ra....
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....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 deoiled cake). 103B 2302 Rice bran (other than de-oiled rice bran) 105 2304 Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil. 5.4. Tariff item 2302 read as under:- Tariff Item Description of goods 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 - Other 2302 30 00 - of Wheat 2302 40 00 - of other cereals 2302 50 00 - of Leguminous plants 5.5 Tariff item 2304 read as under:- Tariff Item Description of goods 2304 Oil cake and other solid residues whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil. 2304 00 - Oil cake and other sold residues whether or not ground or in the form of pellets, resulting ....
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....n rice bran) under Tariff item 2301, 2302, 2308 & 2309 are NIL rated and such items do not attract GST. Under the said entry, poultry feed and cattle feed of Tariff item 2302 are NIL rated. Chapter head 2302 does not specify the supplier or the recipient of goods i.e. Poultry feed and Cattle feed, to enjoy exemption from payment of GST under Entry 102 of Exemption Schedule. 5.8 Soya husk may also be covered under Tariff item 2302 50 00 as residue of Leguminous plants. 5.9 As per tariff item 2302, the said tariff item includes 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. It means that the said tariff includes poultry feed and cattle feed derived from the sifting, milling or other working of cereals or of leguminous plants. 5.10 As per entry 105 of Schedule I. the tariff 2304 covers Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil attract tax @5% (CGST 2.5% & SGST 2.5%). 5.11 It is evident from the above that - (a) As per para 4 of Circular No.80/54/2018-GST dated, 31st&n....
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.... pulses, concentrates &. additives, wheat bran & de-oiled cake". The goods sold by the applicant is not aquatic feed, shrimp feed, poultry feed or cattle feed but soya husk which is an input for cattle feed as submitted by them in their application, hence the benefit of notification number 02/17 cannot be extended to them. Once the benefit of notification No.2/17 is ruled out, it is submitted that the goods of the applicant are squarely governed by entry No. 105 of Notification 01/17 central tax (rate) dated, 28.06,.2017 attracting GST @5% which reads as under:- "2304 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil (other than aquatic feed including shrimp feed and prawn feed, poultry 7 S. No. Chapter/ Heading/ Sub-heading/ Tariff item Description of Goods (1) (2) (3) feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake". In view of the above, this office of the opinion that product soya husk obtained from the extraction of soyabean oil is classifiable under HSN 2304 and taxable by virtue of entry No.105 o....
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....pply the manufactured/ processed product to its customers to be used as poultry feed or cattle feed. 7.9 Soya husk is used by the customers of the applicant as input/ ingredient in the manufacture or processing of Poultry feed and Cattle feed. 7.10 Soya husk sold to the manufacturers or processors by the applicant may be exempt from payment of GST being NIL rated under Chapter 2302 and Tariff item 2302 50 00 as residue of Leguminous plants under entry 102 of Notification No.2/17-Central Tax (Rate) dated, 28.06.2017. 7.11 Exemption Entry 102 is general entry exempting GST on supply of prepared Poultry feed and Cattle feed under Chapter 2302. 7.12 Entry 105 of Schedule I is a specific entry prescribing GST @5% on solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil under Chapter 2304. 7.13 The applicant is selling only soya husk, resulting from extraction of Soyabean oil to the manufacturers / processors of Cattle feed and Poultry feed. 7.14 As per the interpretation of the applicant under Rule 3(a), specific entry will prevail over the general entry in case where the goods are covered under more than one ent....