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2019 (8) TMI 1154 - AAR - GSTBenefit of exemption from GST - activities related to agriculture produce - service of loading and unloading of imported raw whole yellow peas - Circular No. 16/16/2017-GST dated 15/11/2017 of CBIC - HELD THAT:- Services relating to the cultivation of plants, inter alia, for agricultural produce are exempt under Sl No. 54 of the Exemption Notification and classified under SAC 9986. They include, among others, loading, unloading, packing, storage or warehousing of agricultural produce [clause 54(e) of the Exemption Notification]. The agricultural produce means any produce out of cultivation of plants etc. “for food, fibre, fuel, raw material or other similar products on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. It, therefore, appears that the service of loading, unloading etc. of agricultural produce is admissible for exemption under Sl No. 54(e) of the Exemption Notification, provided such loading/unloading service is related to the cultivation of plants and classifiable under SAC 9986. The scope of such support services extends to post-harvest crop services such as preparation of crops for the primary markets - Circular No. 16/16/2017-GST dated 15/11/2017 of CBIC clarifies that the process of de-husking or splitting of pulses is usually not carried out by farmers or at the farm level but by the pulse millers and, therefore, such products are not to be considered ‘agricultural produce’. The emphasis, therefore, is on the processes and services that are applied till the goods are at the farmer’s hand. As soon as they leave the farmer’s hand and the primary market, the services rendered thereafter are not to be considered related to cultivation of the plant and classifiable under SAC 9986. The Applicant renders the service of loading, unloading etc. after the cargo of yellow peas, imported from a foreign land, reaches the port of entry. The produce has been procured from the farmers in the foreign land and exported to India. Clearly, it is, whether processed in a mill, no longer in the domain of the primary market or at the farmer’s hand. Exemption under Sl.No. 54(e) of the Exemption Notification, therefore, is not applicable to the Applicant’s services.
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