TaxTMI 
TaxTMI 
2024 (9) TMI 665
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "CGGST Act") are mirror images of each other except for certain specific provisions. Therefore, unless a specific mention is made, a reference to the CGST Act would mean a reference to the similar provisions under the CGGST Act and vice versa. Further, the expression 'GST Act' would be a common reference to both the CGST Act and CGGST Act. 2. This present appeal dated 13.12.2022 has been filed under Section 100 of the CGGST Act, 2017. 3. Brief Facts of the case: 3.1 The appellant is engaged in the business of running a rice mill and the Present appeal has been filed by them seeking advance ruling regarding classification & applicability of GST on sale of Rejected Paddy Seed which has been informed to be not fit for human consumpti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed 31.10.2022 gave advance ruling as under- (a) Rejected paddy seed would merit classification under chapter heading 100610, subject to the compliance of the stipulations and conditions as mentioned in the Section note and chapter note specified therein. (b) The exemption from whole of tax as provided under Sr. no 70 of Notification no. 02/2017-Central Tax (Rate) dated 28.6.2017 as amended vide Notification no. 07/2022-Central Tax (Rate) dated 13.7.2022 is not eligible for supply of "Rejected paddy/ Damaged paddy" for the reasons as discussed above. (c) "Rejected paddy / Damaged paddy" per se supplied by the applicant, procured by them although merits classification under chapter 100610 subject to adherence of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5% GST rate to Rice which is pre-packaged and labelled covered under HSN*1006 whereas Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017 provides the exemption to Rice which is other than pre-packaged and labelled covered under HSN-1006. Therefore, notification has made distinction only on the base of pre-packaged and labelled and other than pre-packaged and labelled. (iii) As per Chapter 10 of Customs Tariff, covered cereals & the relevant classification of rejected paddy falls under "HSN Code 1006-Rice". (iv) The relevant Explanatory note to HS Code 1006 covers "Rice in the husk (Paddy or rough rice), that is to say, rice grain tightly enveloped by the husk hence, the same is covered under exemption of S.No.70....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ant appeared virtually and reiterated their contention as submitted in their application dated 13.12.2022. 8. Discussion and Findings: 8.1 Accordingly, after careful consideration of the case, ruling of the AAR, relevant rules, regulations and notifications there-under various statutory guidelines having bearing on the issue in hand and raised by the appellant, we proceed to decide the case in accordance with the law. 8.2 On quick glance through the case records, we find that the issue under consideration in brief is- (a) Whether the rejected paddy (further categorized based on its usage such as Animal Feed, Cattle Feed, Poultry Feed, Industrial use, Manure, etc.) is covered under S.No. 70 of Notification No. 02/2017-Centr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n (100610) is suitable for regular rice which is fit for human consumption, which is to be understood in common parlance. Rejected Damaged paddy is altogether a different class. Rejected' Damaged paddy is the one which can't he consumed by human beings as it is not fit for human consumption. As discussed above, it would not fall under seed quality. Therefore, appropriately it should be placed under HSN 1006 10 90. Held accordingly 8.6 Now, we come to examine the applicability of S No.70 of Notification No. 02/2017-Central Tax (Rate), dated 28.06.2017. It is an exemption notification and goods placed under this notification are wholly exempt from GST. At S.No.70 of Notification No. 02/2017-Central Tax (Rate), dated 28.06.2017, it is, "100....