AI Drafter 
TaxTMI 
TaxTMI 
2023 (3) TMI 1255
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....licant"). The applicant is manufacturer of Sugar, Molasses and Ethanol. 2. The applicant has submitted application for Advance Ruling dated 02.11.2022 enclosing dully filled Form ARA-01 (the application form for Advance Ruling) along with annexure and attachments. The applicant in his application has sought advance ruling on following question/clarification- 1. Classification of Sugarcane Juice 2. Rate of GST applicable on sale of Sugarcane Juice. 3. Applicability of a notification which affects the rate of tax if any. 3. As per declaration given by the applicant in Form ARA-01, The applicant is neither pending nor decided in any proceedings under any Act, against the applicant. 4. The applicant has submi....
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....maining juice is sold as Molasses. We paid GST @ 5% on our finish Product i.e. Sugar and @ 28% on Molasses i.e. our by product emerges during the production of Sugar. (2) Now further we are going to sold sugarcane juice without doing any further process to distilleries where they manufactured Ethanol falling under Chapter heading 2207 attract GST @5%. Only raw material for manufacturing of Sugar is sugarcane, falling under Chapter Heading 1212 and attract Nil rate of GST, and also classified under agriculture produce. (3) Relating to Services & Classification of Goods under the definition of agricultural produce. In view of the Notification No.2/20I7-Central Tax (Rate) most of the items related to agricultural pro....
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.... goods/products. As per Notification No. 12/2017-Central Tax (Rate)/SRO. No. 371/2017 Government has exempted intra-state supply of services covered under Heading 9986. As per this notification services relating to cultivation of plants or agricultural produce by way of 'vacant land with or without a structure incidental to its use' is exempted from tax liability. Thus imposing GST on agricultural produce as well as Services related to agricultural produce is unjustified. 6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Joint Commissioner, (Corporate Cell), State Tax, Lucknow Zone-II vide his letter dated 28.12.2022 submit....
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....overed under Section 97(2) (a) of the CGST Act 2017 being a matter related to classification of goods. We therefore, admit the application for consideration on merits. 10. The applicant M/s Gobind Sugar Mills Ltd. having GST No-09AABCG0947NIZA is engaged in manufacturing of Sugar and Molasses. The mam raw material used in manufacturing of sugar is sugarcane. They have sought clarification on following points.- 1 Classification of Sugarcane Juice. 2. Rate of GST applicable on sale of Sugarcane Juice. 3. Applicability of a notification which affects the rate of tax (If Any) 11. For in-depth analysis of present matter, we proceed to discuss the classification taxability and relevant Notification applicable in t....
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....imary market. In the present case sugarcane juice is produced by way of crushing of sugarcane and hence not produced by farmer. Also process changes it's form and constitution alongwith changes are of such nature that if it is to be attain the secondary market for use and become raw material for production of sugar, molasses etc. Since all the three Conditions of agricultural produce is not fulfilled by sugarcane juice and hence it is not considered to be agricultural produce. The next question arises that if it is not agricultural produce how will it be classified. In this context study shows that sugarcane is neither a fruit nor a vegetable. Sugarcane is usually a type of grass/plant, sugarcane is not the result of flowering ....
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....ed as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration." The Tariff item 2009 contains specific description of Fruit and Vegetable Juices Sugarcane is neither fruit nor vegetable nor nuts but it is covered under other parts of plants as such Rule 3(a) of General Rules for the Interpretation of Import Tariff will apply and the same merits classification under HSN 20098990. Hence sugarcane juice is classified under chapter 20 and tariff item 20098990 which f....