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BLACK TEA AN AGICULTURAL PRODUCE?

Goods and Services Tax - GST - By: - Mr.M. GOVINDARAJAN - Dated:- 1-2-2019 - The green tea leaves plucked from the plants are not fit for the human consumption. It cannot be sold in the open market for human consumption. The raw tea leaves are withered by exposure in the shadow of the sun or by heating in trays until pliable. The tea leaves normally undergo the following standard procedures prior to procurement- Tea leaves are plucked from the tea plant. Thereafter the leaves are rolled by hand .....

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017-Central Tax (Rate), dated 28.06.2017 as any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, 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. In re Nutan Warehousing Company Private Limited - 2018 (12) TMI 6 .....

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e ruling in this case. The exemption benefit claimed by the appellant was rejected by the Authority for Advance Ruling. Therefore the appellant filed the present appeal before the Appellate Authority. The Appellate Authority considered the moot issue in this appeal is whether the tea leaves of the various qualities which is precisely black tea, procured in bulk either from public tea auctions or directly from manufacturers of tea in 50 kg bags after undergoing various stages of the processes by .....

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ppellate Authority inferred that there is no doubt that the processes or treatments in which are performed upon the green tea leaves amounts to manufacture as per definition under section 2(72) of Central Goods and Services Tax Act, 2017. The said fact is acknowledged by the appellant. The Appellate Authority also analyzed the definition of agricultural produce under clause 2(d) of the Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. The Appellate Authority listed out the following .....

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agricultural produce. Thus the manufactured products do not fulfill the above prescribed criteria of the agricultural produce. The Appellate Authority held that the black tea cannot be considered as agricultural produce. The Appellate Authority rejected the contention of the appellant that the said processes carried out on the green tea leaves do have bearing on the taste and color of the tea does not alter the characteristics of the tea. If tea stored in appellant s warehouse is agricultural pr .....

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