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2021 (1) TMI 433 - AUTHORITY FOR ADVANCE RULING, GUJARATClassification of goods - rate of tax - Maize Bran - To be classified as cattle feed or not - whether chargeable to CGST @2.5% under Sr.No.103A of Notification No.1/2017 or chargeable to NIL rate as per Sr.No.102 of the Notification No.2/2017? HELD THAT:- Maize Bran is used as a major supplement for cattle feed. The word ‘supplement’ is defined in dictionary as “a thing added to something else in order to complete or enhance it.” Therefore, Maize Bran is a product, which is added to cattle feed to complete it or enhance it. This literally means that Maize Bran is not a cattle feed in itself but is added to cattle feed to enhance or improve its quality/nutritional value or to complete it. It is also seen from the submission of the applicant that they are time and again stressing on the fact that the maize bran produced by them is cattle feed and should be rightly classified on the basis of its use and be exempted under Sr.No.102 of the Notification No.2/2017-Central Tax (Rate) dated 28.06.2017. However, they have failed to clarify as to how the said product can be considered as ‘cattle feed’ when the definition itself says that “it is used as a major supplement for cattle feed. Further, they themselves have submitted that maize bran is usually a mixture of the bran fraction and other by-products and a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed. They have also stated that they supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix Maize Bran with other maize processing by-products. It can also be construed from the above that the maize bran supplied by them to the farmers would not be directly fed to cattle but be mixed with the cattle feed before feeding it to the cattle. In view of the above, it can be seen that Maize Bran in itself is not a cattle feed but is a major ingredient used in the manufacture of cattle feed as submitted by the applicant. Thus, the applicant by themselves have contradicted their contention through their submission. The applicant has supplied Cattle Feed Bran Dry to M/s Dutt Industries, Visnagar, a manufacturer, who is engaged in the manufacture of cattle feed (as per the data available online). Thus, for the above manufacturer, maize bran is just an input/ingredient, which is used in the manufacture of their final product i.e. cattle feed. It can, therefore, be concluded that the maize bran sold by the applicant is used by the above company as an input in the manufacture of cattle feed but is not a cattle feed by itself. It is also seen that ‘Maize Bran’ is specifically mentioned in Sub-heading No.23021010 of the First Schedule to the Custom Tariff Act, 1975 (51 of 1975) and the word ‘Bran’ is specifically mentioned in Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 - the product ‘maize bran’ does not warrant classification under Sr.No.102 of Notification No.2/2017-Central Tax (Rate) as the product does not classify as ‘cattle feed’ and is correctly classifiable as ‘Bran’ under Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017. Thus, the inputs for animal feed are different from the animal feed. Said S. No. 102 covers the prepared aquatic/ poultry/cattle feed falling under headings 2301, 2302, 2308 and 2309. This entry does not apply to raw material/inputs like Maize bran falling under heading 2302 - thus, the product in question i.e. Maize Bran is used to manufacture/formulation of animal feed, cattle feed, etc.. This raw material/input cannot be directly used for feeding animal and cattle. Hence, it cannot be construed as ‘cattle feed’ and, accordingly, Maize Bran will attract GST @ 5% under S. No. 103A of the Notification No.1/2017- Central Tax (Rate) dated 28.6.2017.
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