TaxTMI 
TaxTMI 
2025 (11) TMI 59
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....lar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the APGST Act, 2017. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act 4. Brief Facts of the case: M/s V K Industries, has been engaged in the processing of cotton seeds (HSN Code: 12072100) sourced from cotton ginning plants. The company employs a multi-stage processing approach, beginning with mechanical cleaning in 2-3 stages to eliminate dust, debris, and other impurities. Subsequently, the cleaned seeds undergo delinting to remove short fibers (lint) (HSN Code: 14042000), followed by dehulling to separate the outer hulls from the inner kernel (HSN Code: 23061090). The dehulled kernels are then subjected to mechanical pressing in expellers to extract crude oil, resulting in dec....
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....esigned for cattle feed only. • The reason being that a toxic compound by name 'Gossypol' is present in cotton seed and its products. Only cattle have tolerance limits for detoxifying the gossypol content in cotton seed product. • The presence of Gossypol makes it unfit for use in Aqua and Poultry feed. • Poultry and aquatic animals lack this tolerance. Hence, the product is not suitable for poultry or aquaculture use unless the gossypol is removed through a de-gossypolisation process. 6. Questions raised before the authority: The applicant sought advance ruling on the following: 1. Whether the proposed new product can be classified under chapter 23 of HSN Code 23099010? 2. Whether the supply of proposed new product is covered by exemption under serial no 102 of Central Tax Rate Notification no.02/2017 dated: 28-06-2017 3. If it not covered by exemption as above, what is the rate of tax on supply of the proposed New Product and which HSN Code the said product is covered? On Verification of basic information of the applicant, it is observed that the applicant is under State jurisdiction i.e, Adoni Circle, Kur....
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.... proposed product "Cotton Seed Cattle Feed" falls under HSN Code 23099010 and is accordingly eligible for exemption from GST as per the aforementioned notification. 8. Personal Hearing: The proceedings of Personal Hearing was conducted on 17.06.2025, for which the authorized representative, Sri D Hanumantha Reddy, has appeared and reiterated the facts narrated in their application. Further, the AR submitted additional submissions during the personal hearing. 9. Additional Submission: The additional submissions submitted during the personal hearing are extracted hereunder: "Overview on Cotton seed and UD Cake Cotton seeds are used as Animal feed from last 400 or more years. As the Cotton Oil prices went up, cotton seeds are directly used in Oil Expellers (earlier referred to as Ghanis) to obtain cotton oil and Un-decorticated Cotton Oil cake (UD Cake). Cotton seed composition Seeds meat About 49-50 % Hulls + Linters About 49-50 % Impurities About 1.5- 2 % As UD Cake is obtained directly from Cotton seeds, it has the entire Cotton seed hulls and linter content along with impurities in the cotton seed. UD Cake has pr....
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....alabs.in AN ISO 9001:2015 CERTIFIED ORGANISATION WHATSAPP NO: 8898913888 2. R. K. ANALYTICAL LABORATORY G.I.D.C. 2, PLOT. 1114, SABALPUR, JUNAGADH. PH: 0285 2660168, MOBILE NO: 9879002937/ 9429773920 E-MAIL: [email protected] The authorized representative also submitted the following information: 1. Photo copies of the processing of cotton and machinery. 2. MSD Veterinary Manual with regard to Gossypol Poisoning in Animal - Toxicology. 3. Copy of Notification No.2/2017-Central Tax (Rate), dated 28.6.2017. 10. Discussion and Findings: We have carefully examined the submissions made by the applicant M/s V K Industries in their application for advance ruling, including additional information furnished during the personal hearing held on 17.06.2025. The authorized representative, Sri D. Hanumantha Reddy, reiterated the core contentions during the hearing and clarified the nature, composition, and end-use of the proposed product referred to as "Cotton Seed Cattle Feed." The applicant is engaged in the processing of cotton seeds, following a multi-stage process that Includes mechanical cleaning, delinting, dehulling, expeller pressing, and ....
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....determine the classification of "Cotton seed Cattle Feed' and as to whether the same is exempted. In terms of explanation (iii) and (iv) to Notification No. 1/2017 Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. To be precise, the question to be answered is whether the product is classifiable under CTH 2306 or under CTH 2309. The relevant entries of the Tariff and the Chapter Note of Chapter 23 are as under: "CHAPTER 23 -Residues and waste from the food industries; prepared animal fodder NOTE : Heading 2309 includes products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material....
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....nd Decorticated Cotton Seed De-oiled Cake - Solvent Extracted Variety (HSN Code: 23061020= GST Rate 5%) in equal proportion (50:50 by weight) for preparing a new product 'Cotton seed cattle Feed'. Though this product may be different from raw materials, it will not lose its nature, character, identity and no new product emerged. The mixture ground to a uniform size of approximately 8 mm in size and then mixed in specialized mixing equipment and this final blended material is bagged and stored as finished cattle feed. This product is not specifically found in exempted entry No.102 of Central Tax Rate Notification No. 02/2017 dated 28.06.2017, whereas in Sl.No 107.(Tariff item 2306) 107 to Schedule of the notification no.1/2017, dated 28.6.2017 covers Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable or microbial fats or oils, other than those of heading 2304 or 2305 other than cottonseed oil and is liable to tax at 2.5%. The entry 102 of Central Tax Rate Notification No. 02/2017 dated 28.06.2017 and the entry 107 to Schedule of the notification no.1/2017, dated 28.6.2017 are extracted hereunder: S.No.....