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2024 (2) TMI 552 - AAAR - GSTExemption from GST - items imported and the services rendered by the applicant is in relation to loading, unloading, packing, storage and warehousing of ‘agricultural produce’ or not - Sl No. 54 (e) of the Notification No. 12/2017-Central Tax (Rate), Sl. No. 24 of notification No. 11/2017-Central Tax (Rate) both dated 28.06.2017 - applicability of circular No. 16/16/2017 – GST dated 15.11.2017 - HELD THAT:- It is evident from a conjoint reading of the definition and explanation provided in the notifications and circular referred above, that in order to determine whether a product qualifies as "agricultural produce," a correlation must be established between the stipulations outlined in the aforementioned circular and notifications. Rather than examining each of these stipulations separately, a holistic approach is required for such ascertainment. It can therefore be concluded that ‘agricultural produce’ denotes any produce out of cultivation (emphasis added) of plants for food, fibre, raw material on which either no further processing is done or such processing is done as is usually done by a cultivator or producer (emphasis added) which does not alter its essential characteristics but makes it marketable for primary market. Additionally, Circular No. 16/16/2017-GST dated 15.11.2017 clarifies that dehusked or spilt pulses are not "agricultural produce." The activities of loading/unloading/storage by the cultivator/producer of such ‘agricultural produce’ have been granted exemption from the levy of tax in the cited notifications. Further, it is observed that there is an absence of substantiating evidence suggesting that the products had not been altered or had not undergone any changes in the overseas, by any entity other than the producers or cultivators, prior to their importation into India. It, therefore, is evident that when products are imported, their primary market is situated on foreign shores. However, after enduring multiple value additions and sales, the goods when imported into India, forfeits the quality to be considered as ‘marketable for primary market’. Consequently, these goods become no longer eligible to be treated as "Agricultural Produce" in terms of the afore-mentioned notifications and circular.
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