2022 (11) TMI 82

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....ought it in respect of any matter referred to in sub-Section (2) of Section 97 for advance ruling; (b) On the concerned officer or the jurisdictional officer in respect of the applicant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. Under Section 104 (1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-Section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made. * * * * * Subject: GST - Appeal filed by M/s Ganga Kaveri Seeds Pvt Ltd., Flat No. 1406 and 1407, 14th floor, Babukhan Estates, Basheerbagh, Hyderabad - Telangana - 500 001, under Section 100 (1) of TGST Act, 2017 against Advance Ruling TSAAR Order No.05/2022, dated 11.2.2022 passed by the Telangana State Authority for Advance Ruling - Order-in-Appeal passed - Regarding. * ....

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.... producer of grain for primary market. Therefore, the seed quality goods produced by them cannot be treated as agricultural produce. * Sl.Nos. 54E and 54(c)(h) of Notfn No. 12/2017-CT(R), dt. 28.6.2017 relate to exemption of services engaged by a cultivator or an agriculturist and not to services engaged by a seed company. * Sl.Nos. 24(i)(e) and 24(i)(c) and (h) of Notfn No. 11/2017-CT(R), dt. 28.6.2017 pertains to support services to agriculture, forestry, fishing, animal husbandry engaged by a cultivator and not to services engaged by a seed company. * Transportation of seeds from farm to storage facility and then transportation of packed seed from storage facility to distributors is not exempt under sl.no. 21(a) of Notfn No. 12/2017 as this entry provides exemption on transportation services to agricultural produce. * If processing is undertaken by an applicant himself for in house seed production, there is no supply and hence exempt. 5. Based on the above observations, the lower authority has ruled as under: Questions Ruling 1) Whether the seeds produced/ procured and processed, packed and sold by the Applicant as seeds for sowing are agricultural produce in terms o....

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....an agriculture produce and the seed is nothing but the best quality of the agricultural produce graded from out of the agriculture produce basing on its germination; * They relied on the decision of the Hon'ble Apex Court in the case of The State Of Rajasthan Etc vs Rajasthan Agriculture Input Dealers Association etc., dated 9-71996 wherein it was held that "It is undoubtedly true that food grains per se could be used as seeds for being sown and achieving germination, but in that form they retain the dual utility of being as well as seeds. By process of coating and applying insecticides, other chemicals and poisonous substances to food grain meant to be utilized as seed, one of its basic characters, i.e., its consumption as food by human beings or animals or for extraction for the like purpose, gets irretrievably lost and such processed seeds become a commodity distinct form food grains as commonly understood." This observation of the Hon'ble Apex Court makes it clear that the chemically treated seed may not be useful for consumption by human beings or animals as a food grain and may be distinct from the food grain due to its restricted and specified utility, but it does ....

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....basis are exempt from payment of GST in terms of Sl.No.54(c), (h) of the Notification No. 12/2017- Central Tax (Rate)dated 28-06-2017 read with the definition of "agricultural produce" there under and Sl.No.24(1)(c), (h) and (iii) of the Notification No. 11/2017- Central Tax (Rate)dated 28-06-2017 read with the definition of "agricultural produce" thereunder or any other entry/entries of the above notifications. Apart from the transport of seeds from the farm lands to storage facility/godown of the Appellant, transport of seeds from one storage facility/godown of the Appellant to the other storage facility/godown of the Appellant, transport of packed seeds from storage facility/godown of the Appellant to the distributor and transport of sales-returns, if any, (heading No.9965 or 9967) is exempt from payment of GST in terms of Sl.No. 21(a) of the Notification No. 12/2017- Central Tax (Rate)dated 20-06-2017 or any other entry/entries of the above notifications. Therefore, processes undertaken by the applicant, namely, cleaning, drying, grading, treatment with chemicals and packing (heading No.9986), for himself also are generally exempted. Whether the appeal filed in time 7. As per....