TaxTMI 
TaxTMI 
2024 (10) TMI 123
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....for the respondent no. 2. 2. Though served no one appears for the respondent no. 1 and 3. Rule returnable forthwith. Learned Advocate Ms. Sancheti waives service of notice of Rule for respondent no. 2. 3. Having regard to the controversy involved which is in a narrow compass, with the consent of learned advocates for the respective parties, the matter is taken up for hearing. 4. By this petition under Article 227 of the Constitution of India, the petitioner has prayed for the following reliefs: "(a) quash and set aside the impugned Order in Appeal No. AHM-CGST-003-APP-ADC-85/2022-23 dated 11/01/2023 (Annexure B) well as the impugned Order in Original No.01/RM/ SUPDT/GST/2021-22 dated 29/03/2022 (Annexure C) along with the Notice No. F.....
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....of Notification no. 2 of 2017 dated 28.06.2017 and accordingly, the petitioner continued to avail exemption on inward and outward supplies of cotton seed oil cake as cattle feed. 5.3. It appears that during the course of audit of financial records of the petitioner, audit objections were raised by the Respondent no.3 that during the period from 01.07.2017 to 29.09.2017, if the supply of the cotton seed oil cake is for cattle feed then only the exemption can be claimed and it was found that the petitioner had supplied cotton seed oil cake to the traders which amounted to supplies for the purpose of trading or for further supplies and not for cattle feed and the petitioner failed to establish that supplies of the cotton seed oil cake were us....
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....of 2017. 5.8. The petitioner also raised an objection that with effect from 22.09.2017 as per the Notification No. 28 of 2017 vide Entry No. 102A, the cotton seed oil cake was also made eligible for exemption as per the recommendations made by the GST Council in its 21st meeting held on 09.09.2017. The Appellate Commissioner however while recording the fact that the cotton seed oil cake is used as cattle feed but in view of the Notification dated 22.09.2017 came to the conclusion that the same would not be applicable retrospectively with effect from 01.07.2017 and hence the petitioner would be liable to the levy of GST from 01.07.2017 to 21.09.2017. 5.9. Being aggrieved, the petitioner has preferred this petition challenging the order of ....
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....ption and the Appellate Authority was not justified in restricting or applying such notification from the date of publication by relying upon Section 9 of the GST Act. It was submitted that it is true that the rate of GST to be applied from the notification but when the exemption is granted on the specific item the same would apply from the date of exemption notification. 6.3. It was further submitted that Entry No. 107 of the exemption notification was modified accordingly by separate Notification No. 27 of 2017 whereby in column No.3 of serial no. 107 of Notification No. 2 of 2017, the cotton seed oil cake was excluded from the entry from cattle feed. It was pointed out that the Serial No. 107 in column no. (3), for the words "other than....
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....ctive parties and considering the facts of the case, it appears that the petitioner was not liable to pay the VAT into Pre-GST Regime on the sale of cotton seed oil cake as the same was exempted as cattle feed. The GST Act has subsumed the earlier VAT Act and as per the Entry No. 102 of Notification No. 2 of 2017, it clearly provides for exemption to levy of GST on cattle feed. Even on perusal of the show-cause notice, it is revealed that the respondent Authority has reproduced objections raised by the Audit Party which clearly shows that the Audit Party while considering the replies made by the petitioner during the course of Audit and deliberations on the issues though recorded that the petitioner was not able to prove or state the status....