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2019 (7) TMI 1335 - AAAR - GSTClassification of goods - Input Tax Credit - waste or not - Mahua De-oiled cake/ De-oiled Rice Bran being used as an ingredient of Cattle Feed, Poultry Feed and other animal feeds - 'Waste generated' during the Solvent Extraction process or not? - scope of supply - HELD THAT:- The sale of de-oiled cake is undoubtedly 'supply'. Activities which are not supply are categorically outlined in the GST Act itself. Anything not covered by the exclusion will fall under the ambit of supply. Therefore, it is hard to comprehend the rationale of the appellant in not considering de-oiled cake as supply, since the definition (as quoted above) leaves no ambiguity that anything that is sold with or without consideration, is supply. Having settled the issue of sale of de-oiled cake being supply, it can be concluded that Section 17(2) of the GST Act, 2017 is very much applicable. De-oiled Rice Bran has been fully exempted from CGST vide Entry No. 102A of Notification No. 7/2018-C.T. (R), dated 25-1-2018. so, in terms of Section 17(2) of CGST Act, 2017, the input credit attributable to the supply of this exempted goods i.e. de-oiled rice bran has to be reversed by the appellant. Classification of de-oiled mahua cake - HELD THAT:- The product de-oiled mahua cake is not covered under Heading 2304 or 2305 as different products have been classified under the same. Accordingly, we find support in the claim of the noticee that 'De-oiled Mahua cake' is classifiable under Heading 2306 of Chapter 23 of Customs Tariff Act" - Since 5% GST is applicable on file goods falling under Chapter Heading 2306, under Notf. No. 1/2017-Central Tax (Rate), dated 28 June, 2017, as amended, the appellant is required to pay GST @ 5% on the supply of de-oiled Mahua cake accordingly entitled to avail input tax credit on the same.
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