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2018 (10) TMI 1876 - AAR - GSTInterpretation of statute - storage or warehousing mentioned in clause (i) (e) of the explanation in entry at S.N 24 - includes cold storage, deep freeze storage and controlled atmosphere storage also or not - agriculture produce - taxability - rate of tax - turmeric whole (gattha & fait), turmeric powder, red chili (whole), red chili powder, chili seeds - covered under the definition of 'Agriculture Produce' as defined under N/N. 11/2017- Central tax (Rate) dated 28.06.2017 or not. Interpretation of statute - scope of term 'warehousing' as appearing in clause (i) (e) of the explanation in entry at Sr. No. 24 of the notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 corresponding notification no. 46/ST-2 Dt. 30.06.2017 under the HGST Act, 2017 - HELD THAT:- Since, the warehousing services are support services and covered in SAC 99672, it includes cold storage, deep freeze storage and controlled atmosphere storage services also unless an exception is provided in the entry - It had also been argued and discussed whether processing done on the agriculture produce by a person other than the cultivator will take away the benefit of nil rate to support services in relation to agricultural produce as per entry no, 24 of the said notification. A plain reading of clause (vii) of explanation 4 to the said notification clearly mention that 'such processing is done as is usually done by a cultivator or producer.' It is immaterial that who does the process as long as the process is such as is usually done by the cultivator or producer which does not alter the essential characteristics of the agricultural produce but makes it marketable for primary market - Turmeric, red chilly in whole are generally marketed in the primary markets and once converted in powdered form these are sellable in the secondary market. Pre-conditioning : and pre-cooling processes as mentioned in sr. no, 24 (ii) of the said notification - HELD THAT:- It is amply clear that the pre-conditioning or pre-cooling processes are rendered on the agriculture produce at the farm gate before being transported to either the markets or for storage purpose. Therefore, these services of pre-conditioning or precooling processes cannot be regarded as cold storage, deep-freeze or controlled atmosphere storages but the benefit of nil rate on such services shall be available as long as the conditions and restriction as provided under entry 24 (ii) of the said notification are satisfied. Whether the entry 24 (ii) of the said notification also include dry fruits, cut fruits, frozen nuts, processed fruits, and cut vegetables, dried vegetables, processed vegetables and the like? - HELD THAT:- The pre-conditioning or pre-cooling processes etc. are usually done at the farm gate on the fresh harvested fruits and vegetables. The category of the products cited by the applicant are such on which certain processing has already been done. Such already processed produce will not require the pre-conditioning or pre-cooling processes to be done again and therefore, to our mind the entry takes in its scope fresh fruits and vegetable only. Understanding the scope of SAC 9967 (supporting service in transport) in relation to the agriculture produce as mentioned at Sr. No. 24 of the said notification - HELD THAT:- It is noticed that the benefit of nil rate is provided to only those support services to agriculture which are specifically mentioned at Sr. No. 24 of the said notification. It does not cover the services of transport of agriculture produce and therefore the applicable SAC on such services shall be 9967 irrespective of the service being performed in relation to agricultural produce or any other goods.
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