TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 549
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....ocess] 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 industry for better palatability & higher nutritive value, through the further v....
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....s/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 roller mills and plan sifters to support customer needs. These are used primarily in the extruded snack food industry, breakfast cereals, breweries, co....
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....ticles 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, including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake]"; 1. The said entry sl. no. 103A was inserted vide Corrigendum F. No. 354/117/2017-TRU-PT-Central Tax (Rate), dated 12-7-2017 to the Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 and ....
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....tent 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 feed is selected. 6.7 The term 'cattle feed' has not been defined in the GST statutes. Hence, it is necessary to examine meaning of the term 'cattle feed'. To understand the meaning of the term "cattle feed" following case laws are relied. i. CST Vs Ram Chandra Asa Ram, (2001) 9 SCC 131 the issue before the Court was whether damaged wheat sold after subjecting the same to certain process for use as cattle fodder would qualify for ex....
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....fficient 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 for maintenance and vitamin D, which is needed to enable the animal to assimilate and use other important elements of its feed, are most apt to be lacking in natural live-stock feeds and that they are included as additives in mixed feeds so as to make good the deficiency. 6.9 Interpretation of Exemption Notification (a) It is settled principle of interpretation that the words used in the provision, imposing taxes or granting exemption should be understood in the same way in which these are under....
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.... 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 manufacture of utensils or handicrafts. An assessee manufacturing brass rings claimed the above exemption, which was denied on the ground that brass is an alloy of copper. The Supreme Court while allowing the exemption held that while interpreting an exemption notification, one cannot go by the rules of interpretation that are applicable to classification of goods under the Tariff where the clear words in the notification give the benefit. From the forgoing decision, the principles of interpreting exemption notification can be summarised hereunder. There are two st....
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.... 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 to the decision of Hon'ble Supreme Court in the case of UOI Vs. Inter Continental (India) 2008 (226) ELT 16 (SC), wherein the Supreme Court while examining the issues as to whether CBEC by way of circular could introduce additional condition for claiming exemption for imported crude palm oil, held that by issuing a circular subsequent to a notification, the department could not add new conditions to the notification, thereby restricting the scope of exemption notification or whittling it down. (ii) Further, in the case of Sandur Micro Circuits Ltd. v CCE 2008 (229) ELT 641 (SC) the Hon'ble Supreme Court while e....
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.... 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 proposed to be manufactured by M/s Bhageerathi Foods, where in the cattle feed manufactured would be ready to feed cattle directly, without any further process. 6.15 Requirement of supporting documents to prove the use of our proposed product by customers, as for the direct consumption of Animals (directly used as Cattle feed) The CBIC has clarified vide para no 8.4 & 8.9 of the circular No. 179/11/2022-GST, dated 3rd August, 2022 & similar view rendered in circular No 80/54/2018-GST dated 31.12.2018, about the applicability of Exemption notification benefit for the product under sl 102 of notification 2/2017 dated 28.06.2017 under following 2 different sc....
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....sions 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 phase of processing, wherein specified particles are sorted and graded in required parameters. The unspecified particles are further processed, by way of milling, to make it suitable as Cattle feed. In view of this, the applicant sought advance ruling in respect of the questions, raised as at para 3 supra, which are relevant to their product obtained in the second phase/at the end on milling of the unspecified particles. 11. The applicant classified the impugned product, under tariff heading 2302, as cattle feed, basis the end use and claimed exemption. Thus we proceed to examine the correctness of the classification for which we invite reference to Explanations (iii) and (iv) appended to the Notification No. 0....
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....erits 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 tax (Rate) dated 28-06-2017 or not. Further, the applicant in this regard contends that their product, classified under HSN code 2302.10 as cattle feed, merits exemption in terms of SI.No. 102 of Schedule I to the Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, as amended, which is as under: SI.No. Chapter/Heading/ Sub-heading/ Tariff Item Description of goods 102 2301, 2302, 2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, including grass, hay and straw, supplement and additives, wheat bran and de-oiled cake [other than rice bran] 14. In the instant case the applicant manufactures their product "Cattle feed", out of corn, admittedly, classified the same under heading 2302.10. It could be seen from para 13 supra that the product "Cattle feed", falling under 2302, is exempted in terms of SI.No. 1....
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.... 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 Supreme Court in the case of UOI Vs Inter Continental (India) and also in the case of Sandur Micro Circuits Ltd., Vs CCE. Further, the applicant contends that end use is not the criteria for availing exemption, but on the basis of the goods qualifying for exemption and intends to rely upon the decision of the Hon'ble Supreme Court in the case of Dunlop India Ltd., Vs UOI wherein it was held that generally end use is not relevant for interpretation of exemption notification unless specified in the exemption notification. In view of the foregoing the applicant concludes the contentions with the argument that the supply of the product "cattle feed", which is ready for direct consumption as cattle feed, but used as an ingredient for higher nutritive value is also exempted supply under the Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, as amended. It could be seen from para 13 that th....