AI Drafter 
TaxTMI 
TaxTMI 
2022 (10) TMI 777
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....yable by the recipient under reverse charge mechanism. 2. Proceedings Under Section 98 of CGST/PGST Act: The applicant had already submitted his written submissions as annexures with the application for advance ruling. In this regard personal hearings were held on 18.02.2022 before the Advance Ruling Authority, Punjab. Counsel on behalf of Applicant submitted additional written submissions & document of "Power of Attorney", which are placed on file. The Jurisdictional Authority also submitted their written submissions, which is placed on file. Applicant had deposited only 5,000 for IGST while filling Advance ruling application. In this regard, notice dated 02.03.2022 and 01.09.2022 were issued to the applicant to deposit the requisite....
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.... (e) Determination of the liability to pay tax on any goods or services or both; (f) Whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. It is observed that the query of the applicant in para III is related to the question as to under which provision/ section GST is to be charged on GTA services in respect of Cotton seeds, if they are not exempt, fall under definition of 'Agriculture Produce' under GST Act. This question falls under the ambit of Section 97 (2) of the CGST Act,2017, read with Section 97 (2) of the PGST Ac....
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....ting of agriculture produce. (e) That as per Section 2 (a) of The Punjab Agricultural Produce Markets Act, 1961 in its Schedule at Sr. No. 15 incorporates Cotton Seed "Banaula" is an agricultural produce. (f) That they cited the judgment of Hon'ble CESTAT Delhi in the case of R. K & Sons Vs. CCE Rohtak-2016 (42) STR 314 (Tri.Del) where in it was held that 'ginned cotton' is covered by the definition of 'agricultural produce'. (g) That they sought information from 42 different authorities under RTI regarding applicability of tax on GST services (under reverse charge mechanism) and supplied copies of reply received. 5.2 Sh. S.L. Goyal, counsel for the appellant submitted the following addition....
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.... (e) That the elementary law relating to interpretation of any statute, including a Notification, is that any interpretation which renders certain words of the statute redundant or purposeless should be eschewed in favour of an interpretation which avoids such a consequence. (f) That as per information gathered from the RTI, no person similarly situated in the entire country is paying any GST on the said services in respect of Cotton Seed (Banaula). 6. SUBMISSIONS BY THE JURISDICTIONAL AUTHORITY: - The jurisdictional Assistant Commissioner State Tax, vide letter No. 559, dated 15.02.2022 furnished their comments on 18.02.2022 wherein they inter alia submitted as under: - That Sl. No. 21 of Notification No. 12/201....
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.... of ginning, cotton is first dries to remove moisture and then cleaned to remove any foreign particles. Further seed cotton is processed to remove the lint from the seeds. So, cotton seed is obtained from seed cotton by way of industrial processing called ginning which debars it from the definition of agriculture produce as per the Notification No. 12/2017-Central Tax (Rates) dated 28.06.2017. There have been instances when terms in different statutes are interpreted in different manner. It depends upon the objectives of the particular statue with which it was enacted. Thus if cotton seed is interpreted as agriculture produce under other Acts and not under the GST Law could be due to the reason that GST Law is very particular in pr....