TMI Blog2020 (3) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter heading 23099090 for their product, and therefore the applicant is not entitled to claim Nil rate of duty under as per Notification 02/2017-CT(Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act. - Order No. 01/2020, Case No.17/019 - - - Dated:- 2-1-2020 - MANOJ KUMAR CHOUBEY AND SHRI VIRENDRA KUMAR JAIN MEMBER Present on behalf of applicant: Shri CL Dangi, Advocate and Shri Ravi Shankar Choudhary Advocate PROCEEDINGS (Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods Service Tax Act, 2017) 1. M/s. Vippy Industries Ltd, 28, Industrial Area AB. Road, Dewas (hereinafter referred to as the Applicant) is engaged in manufacturing and export of various soya processed food, used for human as well as animal consumption. The Applicant is having a GST registration with GSTIN 23AABCV1297N3ZY . 2. The applicant has sought Advance Ruling on the confirmation of classification of the product Preparation of a kind used in Animal Feeding - Bio Processed Meal falling under HS Code 23099090. The applicant has provided the following process for manufacture of said product. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.No. Properties Soya bean meal Bio-Processed Soya Bean meal 1. Anti nutritional Factor. a. Glycinin b. B. CongIycinin 4-6 2-3 Less than 50% of Soyabean Meal 2. P.H. 6.5-7 4.5-5.0 3. Lactic Acid 0.03-0.05 3-4 3.7 The applicant has provided the following points in support of his claim that the their end product will be used only Animal Feed: (i) The raw material for the preparation of Bio-Processed meal is soya bean meal feed grade falling under HS code 23040030. (ii) The protein content of the feed grade is less than 50% and not fit for human consumption. During the manufacturing process soya meal undergoes through fermentation process. (iii) The process uses biotechnology to convert protein structure to smaller molecular weight to increase efficiency digestion and absorption. (iv) It also breaks down and reduce ant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of AAR - GST in the case of Maheshwari Stones Supplying Company reported in 2018 (13) GSTL 345 = 2018 (6) TMI 458 - AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA Heading which provide more specific description to be preferred over heading providing general description. (c) As per decision of AAR GST in the case of C.P.R. Mill reported in 2018 (17) GSTL 146 = 2018 (9) TMI 1336 - AUTHORITY FOR ADVANCE RULING, TAMILNADU cattle feed has been classified under 2309 of tariff and exempted vide Sr.No. 102 of Notification 02/2017 CT (Rate). (d) As per decision of AAR - GST in the case of SRIVET HATCHERIES reported in 2018 (19) G.S.T.L. 140 (A.A.R. - GST) = 2018 (11) TMI 445 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH and held that Biofos mono calcium phosphate/Di-calcium phosphate - Animal/ Poultry/Aqua feed supplement - Exemption under GST - Admissibility - Aforesaid product classifiable under Tariff Item 2309 90 90 of Customs Tariff Act, 1975, is a feed grade mono calcium phosphate and being marketed accordingly - Thus it is fully covered under Entry 102 of Notification No, 2/2017-C.T. (Rate) - Exemption admissible. 4. Questions raised Before The Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o smaller molecular weight to increase efficiency digestion and absorption . It also breaks down and reduce antigens or anti-nutrient substance due to fermentation . 7.3 We further notice that the applicant vide their letter dated 18.11.2019 has submitted an additional reply acknowledging a typographical error in para 15F of their advance reply application submitting therein the following: In continuation of our application dated 25.07.2019 and hearing on 14.10.2019 for classifying our product under heading 23099090 Preparation of a kind used in animal feeding bio processed meal the applicant wish to further inform that in place of statement as mentioned in 15(f) of our advance Ruling Application The Protein content of the feed grade is less than 50% and not fit for human consumption should be read as The Protein content is up to 52% . 7.4 It is noted that the applicant is renowned manufacturer of soya based products used for the consumption of general public namely Soya Flakes / Grits, Soya Flour, Soya lecithin, Soya Protein / TVP etc. They are also engaged in the manufacturing of various products meant for animal feeding namely GMO Soyabean meal, non G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06, 2308, 2309 Aquatic including shrimp feed and prawn feed, poultry feed cattle feed, including grass, hay straw, supplement husk of pulses, concentrates additives, wheat bran de-oiled cake 7.6 From above it is derived that the Chapter heading 23099090 is exclusively meant for animal feed. It is noted that the applicant has not provided any evidence to prove that the said product Bio Processed Meal is meant for animal feed. We find that the applicant is renowned manufacturer of soya based products, both for general public, for animal fee as well as for industrial use. In such a situation, a critical analysis is required to establish that the said product is meant only for animal feed. We further noticed that in their Advance Ruling application, they have mentioned at point 15(f) that: The Protein content of the feed grade is less than 50% and not fit for human consumption We further noticed that vide their letter dated 18.11.2019, they have submitted fresh plea that above clause in their Advance Ruling application should be read as under The Protein content is up to 52% . From above, it is clear that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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