TaxTMI 
TaxTMI 
2025 (8) TMI 549
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....turing unit of processing of maize [Dry Process] to manufacture Corn - Meal, Grits, Flour in first phase of processing, wherein specified particles are sorted and graded in required parameters and unspecified particles are further processed in milling to make it suitable for marketing as Cattle feed. 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: 1) Whether unspecified particles from all the process of Corn produced out of Proposed manufacture of Grits, Meal, Flour through the process of (i) Pre-cleaning, (ii) Series of Separation grading, and Sieving Operations in Cleaning Section and (iii) De germination, which are further processed in milling, to make it suitable for marketing as Cattle feed, which are supplied for directly feeding to animal (i.e. supply to end user as Cattle Feed/Direct consumption as Cattle Feed) is an exempt supply, vide S. No. 102 of notification No. 2/2017 central tax (Rate) dated 28-06-2017? 2) The above-mentioned cattle feed, which is ready for direct consumption of Cattles, is also used as cattle feed ingredients by some of our customers of dairy indu....
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.... Business Model of the Applicant: The applicant is planning for setting up a plant for maize/corn grits/meal/flour manufacturing and take up the business activity of manufacturing maize/corn grits/meal/flour & all the products are separated while milling in multiple process viz sieving grading, de germination, aspiration etc. these all-separated products will go to hammer mill and grinded to make it suitable for cattle feed. Manufacturing Process: The proposed activity of the M/s Bhageerathi Foods is - Processing of maize [Dry Process] to manufacture Corn - Meal, Grits, Flour in first phase of processing, wherein specified particles are sorted and graded in required parameters and unspecified particles are further processed in milling to make it suitable as Cattle feed. Manufacturing Flow Chart: The following is the Manufacturing Flow Chart: i. The following are our products in which we deal: FLAKING GILITS These are the first cut into de-germed corn. They are mainly used for proposed manufacturing Corn flakes and Brewery flakes. CORN GRITS Based on the required corn grit particular size, we propose to use our automated roll....
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.... for animal feed. 6. Applicant's Interpretation of Law : The applicant submitted their interpretation of law inter-alia stating as under: 6.1 The 'Cattle Feed', which is proposed to be processed out of unspecified particles of corn which are not suitable for human consumption. These unspecified particles of corn are procured naturally during the manufacturing process of unspecified particles of Corn produced out of all the process of manufacture of Corn Grits, Corn Meal, Corn Flour. The unspecified particles of corn are further processed by milling to obtain final product 'Cattle Feed', which falls under the head 2302. 6.2 Further it is relevant to note that tariff item 2302, is found at Sr. No. 103A of Schedule-I of Notification No. 1/2017-Central Tax (Rate), dated 28.06.2017 issued under the CGST Act, 2017 which reads as under: S.No. Chapter/Heading/ Sub-heading/ Tariff Item Description of Goods 103A 2302 Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants [other than aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, i....
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.... process of manufacturing, some use single raw material and some use multi raw material for manufacturing of cattle feed and some companies make Pallets for cattle feed by their standard process of manufacturing. Thus, all varieties of cattle feed are sold in the market and the user is the same CATTLE FARM. 6.5 Further, different cattle feed is fed to the cattle based on the intent behind feeding it. a. If the intent is to obtain "Beef" the feed will be different b. If the intent is betterment in milk output, the feed will be different. c. If the intent is having better conceiving and feeding during pregnancy period of cattle, the feed pattern is different. Thus, there is no fixed prescribed watertight definition for cattle feed. 6.6 As we can see human food pattern, it differs from status to status. a. Poor - Chai Chapati b. Middle Class - Chai - Biscuit / Bakery Bread c. Upper Middle Class - Juice, Fruits, Branded Oats and like products d. Rich - Juice, Dry Fruits, Fruits and all rich branded items with vitamins and proteins Same is the case of cattle feed also. Depending upon the need of the cattle, the f....
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....ara; "that on a true and correct interpretation of the words "cattle-feed" and "poultry-feed", those terms must include not only that food which is supplied to domestic animals or birds as an essential ration for the maintenance of life but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes, such as for reproduction, for production of milk, eggs, meat, wool or feathers and, in the case of animals, also for efficient output of work. In modern times, "cattle-feed" and "poultry-feed" include a large variety of concentrates, in addition to roughages, that have a high value because they are rich and easily digested nutrients and feed supplement. Amongst the feeds which are considered essential for the proper nutrition of animals and birds, which are to be kept in a state of efficient production, are included vitamins and, more particularly, vitamins A and D, which have been found to have a profound effect upon live-stock farming by increasing the efficiency of animal production and preventing serious nutritional diseases. Vitamin A, which is required for growth, reproduction, production and even fo....
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....t an exemption notification issued under the Central Excise Act. "On a true construction of the language of the notifications, dated July 31, 1959, and April 30, 1960 it is clear that all that is required for claiming exemption is that the cotton fabrics must be produced on power-looms owned by the cooperative society. There is no further requirement under the two notifications that the cotton fabrics must be produced by the Co-operative Society on the power looms "for itself'. It is well established that in a taxing statute there is no room for any intendment, but regard must be had to the clear meaning of the words. The entire matter is governed wholly by the language of the notification. If the taxpayer is within the plain terms of the exemption it cannot be denied its benefit by calling in aid any supposed intention of the exempting authority." V. In CCEx., Jaipur v Mewar Bartan Nirman Udyog 2008 (231) ELT 27 (SC) the Hon'ble Supreme Court was examining the eligibility to exemption under notification No. 3/2001-CE dated 1.03.2001, which provides for exemption to all goods other than trimmed or untrimmed sheets or circles of copper intended for use in the manuf....
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....r cattle fodder includes fodder prepared by damaged wheat held as hereunder: "What is exempted under the Notification of 5.6.85 is cattle fodder. In generic sense the expression "cattle fodder" is inclusive of everything that is fed to cattle including damaged wheat. In the decision relied on by the learned Counsel for the appellant this aspect is noticed but in that particular case fodder was defined as "fodder except cotton seed and oil cakes". In the present case there is no such exclusion of the damaged wheat that is processed and used as feed for the cattle. If that is so, we do not think that there is any justification to interfere with the view taken by the High Court." In view of the forgoing observation, the term 'cattle feed' in common parlance includes any feed of cattle processed with maize or corn grains. 6.12 No new conditions could be imposed through the circular: (i) It is to be noted that it is well settled legal principle of interpretation that the subsequent circulars cannot override or restrict the scope of exemption notification or impose conditions which were not there in the notification. In this regard, attention is invited t....
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.... use is not relevant for interpretation of exemption notification, unless specified in the exemption notification. Therefore, when there is no reference to the use or adaptation of the Article, the basis of end use for classification is absolutely irrelevant. This was also reiterated in Citric India Ltd v UOI 1993 (66) ELT 566 (Bom). While interpreting the tariff classifications under Central Excise and Customs, the Courts have consistently held that end use is not relevant unless the same is specified under the tariff: Indian Aluminium Cables Ltd. v UOI 1985 (21) ELT 3 (SC) CCE v Mannampalakkal Rubber Latex Works 2007 (217) ELT 161 (SC) (ii) From the above decision of the High Court, it is clear that merely because the finished product (fish meal in the said decision) used by others for further manufacture, the exemption cannot be denied. This is in context of validity of the Circular No. 179/11/2022-GST dt: 03.08.2022, with reference to the noting of condition of use of product by others for further manufacture, based on which exemption cannot be denied. (iii) The same principle would equally be applicable to the present case of cattle feed pro....
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....ARING PROCEEDINGS HELD ON 27.05.2024 Sri. Veeresh S Kandgol, Chartered Accountant & Authorised Representative of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts along with the arguments made by the applicant & the submissions made by their learned representative during the time of hearing. 10. The applicant submitted that they intend to manufacture Corn Grits/ Corn Meal and Corn Flour out of good quality maze on subjecting the same to dry process, in first p....
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....als, whole, rolled, flaked or ground is always classified in heading 11.04. Cereals Starch Content Ash Content Rate of passage through a sieve with an aperture of 315 micrometers (microns) 500 micrometers (microns) (1) (2) (3) (4) (5) Wheat and rye 45% 2.5% 80% - Barley 45% 3% 80% - Oats 45% 5% 80% - Maize (Corn) and grain Sorghum 45% 2% 90% Rice 45% 1.6% 80% - Buckwheat 45% 4% 80% - The applicant have not furnished any information with regard to starch and ash content that is contained in their impugned product. Thus we proceed to examine the applicability of exemption claimed by the applicant, for the impugned product, subject to the condition that the impugned product merits classification under heading 2302.10. 13. The applicant sought advance ruling as to whether the impugned product "Cattle feed", intended to supply for directly feeding to animal (i.e. supply to end user as Cattle Feed/Direct consumption as Cattle Feed) is an exempt supply, vide S. No. 102 of notification No 2/2017-Central t....
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....n whether subject falls within the exemption notification that being in nature of exception is to be construed strictly. b) Second Stage: Once the doubt of applicability of exemption notification is ascertained, then the entry of notification warrants for a wider and liberal construction. The applicant further contends that the exemption entry under SI.No. 102 of the notification supra clearly denotes that the 'cattle feed' is an inclusive entry which covers within its ambit any feed of cattle processed with maize or corn grains; relied upon the decision of the Hon'ble High Court of Karnataka in the case of Lotus Roofings (P) Ltd., Vs State of Karnataka; there is no express exclusion of 'cattle feed' that is used as raw material for further processing of manufacturing of cattle feed and relies upon the decision of the Hon'ble Apex Court in the case of Commissioner of Sales Tax, UP Vs Ramachandra Asha Ram. The applicant further contends that subsequent circulars can't override or restrict the scope of exemption notification or impose conditions which were not there in the notification. In this regard the applicant intend to rely upon the decisions of the Hon'ble Supre....
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....ding on the Revenue. Provision itself has stated that officers or other persons employed in implementation of Act shall follow the circulars. Hon'ble supreme Court opined that regardless of the interpretation that of the Court, if there are circulars which have been issued by the CBIC which place a different interpretation upon the said phrase, then that interpretation will be binding upon the Revenue, also held by Hon'ble Supreme Court (Constitutional Bench) in case of Collector of C. Ex., Vadodara v Dhiren Chemical Industries 2002 (139) E.L.T. 3 (S.C.) 16. Now we proceed to consider the third and last question with regard to the documents required to be obtained from the customers as a proof for claiming Exemption with respect to said supply of our proposed Cattle feed product used for feeding the Cattle. In this regard we invite reference to Section 97(2) of the CGST Act 2017, which specifies certain issues on which the applicant can raise the questions and seek advance rulings. The above question raised by the applicant is not covered under any of the specified issues and hence is beyond the jurisdiction of this Authority and thereby this Authority refrains from passing a....