TMI Blog2020 (9) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that Maize Bran is specifically mentioned in Sub-heading No.23021010 of the First Schedule to the Custom Tariff Act, 1975 (51 of 1975) and the word Bran is specifically mentioned in Sr.No.103A of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017 - thus, the product maize bran does not warrant classification under Sr.No.102 of Notification No.2/2017-Central Tax (Rate) as the product does not classify as cattle feed and is correctly classifiable as Bran under Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017. The product Maize Bran manufactured and supplied by M/s. Gujarat Ambuja Exports ltd. is covered under Entry Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 of the CGST Act, 2017 on which rate of GST chargeable is 5%. - GUJ/GAAR/R/24/2020 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/61) - - - Dated:- 2-7-2020 - SANJAY SAXENA AND MOHIT AGRAWAL, MEMBER Present for the applicant : Shri Yashashvi Jain, Advocate BRIEF FACTS The applicant vide their application for Advance Ruling has submitted that they are engaged in the manufacture and taxable supply of Maize starch and its deriva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake] ; The applicant stated that the said Sr.No.103A was inserted vide Corrigendum F.No.354/117/2017-TRU-PT-Central Tax (Rate) dated 12.07.2017 to the Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 and chargeable to duty at 2.5% CGST; that by such entry goods such as aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake were not chargeable to 2.5% CGST; that Central Government vide Notification No.2/2017-Central Tax(Rate) dated 28.06.2017 specified goods in respect of which effective rate of CGST was provided as NIL and that Sr.No.102 of the said notification ( as amended vide Notification No.7/2018-Central Tax (Rate) dated 25.01.2018) provides as under: Sr.No. Chapter Heading/Sub-heading/Tariff Item Description of Goods 01. 2301, 2302, 2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and in the absence thereof on trade or common parlance. (ii) As per case of Plasmac Machine Mfg.Co. pvt.ltd. v/s CCE 51 ELT 161 (SC), goods are to be classified according to their popular meaning as understood in the commercial sense and not as per the scientific/technical meaning. (iii) As per case of CCE v/s Favourite Industries-2012(278) ELT 145 (SC), it is a well settled legal proposition of law that liberal construction is to be given to beneficial notification and therefore the production should be classified on the basis of it s use. (iv) As per case of Rhino Machines pvt.ltd. v/s CCE, Vadodara-2005 (181) ELT 63 (T), goods have to be assessed in the form in which they are cleared from the factory. (v) As per case of Share Medical Care v/s UOI-2007(209) ELT 321 (SC), if the applicant is entitled to benefit under two different Notifications or under two different heads, he can claim more benefit and it is duty of authorities to grant such benefits if applicant is entitled to such benefit. (vi) As per the case of HCL ltd. v/s Collector of Customs, New Delhi-2001 (130) ELT 405 (SC), when pluralities of exemptions are available, the assessee has th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1985 and have submitted ER1 returns for the months of April, 2017 to June, 2017 indicating rate of duty of Maize Bran as NIL. (viii) the maize bran is supplied by them to local farmers and manufacturers of the cattle feed for use as cattle feed only and is one of the most important cereals used in animal/cattle feed and the same being rich in nutrients forms a major ingredient for cattle feed, is produced in wet or dry form both and is widely used in complete feeds for dairy, beef cattle, poultry, swine and pet foods (ix) Since Maize Bran is understood as a cattle feed in common parlance and is therefore bought and sold as cattle feed in the market, same is rightly eligible for exemption under Sr.No.102 of Notification No.2/201-7-Central Tax (Rate).The applicant has also submitted a copy of sample invoice vide which they have removed Maize Bran paying GST of 5%. Further, they have also quoted a few citations/judgements to support their contention. 9. The applicant has submitted the following question for the purpose of advance ruling: This Advance Ruling application seeks determination on the issue as to whether Maize Bran which is a cattle feed is chargeable to C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the food industries; prepared animal fodder . Further, on going through the various sub-headings enlisted in the said chapter, we find that it contains Sub-headings from 2301 to 2309. Out of these, only two specific Sub-headings i.e. 2308 and 2309 cover materials or preparations of a kind which are used in animal feeding which reads as under: 2308 00 00 VEGETABLE MATERIALS AND VEGETABLE WASTE, VEGETABLE RESIDUES AND BY-PRODUCTS,WHETHER OR NOT IN THE FORM OF PELLETS, OF A KIND USED IN ANIMAL FEEDING, NOT ELSEWHERE SPECIFIED OR INCLUDED 2309 PREPARATIONS OF A KIND USED IN ANIMAL FEEDING 2309 10 00 - Dog or cat food, put up for retail sale 2309 90 - Other : 2309 90 10 - Compounded animal feed 2309 90 20 - Concentrates for compound animal feed - Feeds for fish (prawn, etc.) : 2309 90 31 - Prawn and shrimps feed 2309 90 32 - Fish meal in powdered form 2309 90 39 - Other 2309 90 90 - Other 13. On going through the entry of the above product in the Notification No.01/2017-Central Tax(Rate) dated 28.06.2017(hereinafter referred to as the said notification), we find that the same appears at entry No.103A ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct which is added to cattle feed to complete it or enhance it. This literally means that Maize Bran is not a cattle feed in itself but is added to cattle feed to enhance or improve it s quality/nutritional value or to complete it. It is also seen from the submission of the applicant that they are time and again stressing on the fact that the maize bran produced by them is cattle feed and should be rightly classified on the basis of its use and be exempted under Sr.No.102 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017. However, they have failed to clarify as to how the said product can be considered as cattle feed when the definition itself says that it is used as a major supplement for cattle feed. Further, they themselves have submitted that maize bran is usually a mixture of the bran fraction and other by-products and a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed. They have also stated that they supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix maize bran with other maize processing by-products. It can also be const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Tariff Act, 1985 with NIL duty and that the same are reflected in the monthly ER-1 returns submitted by him for the months of April, 2017 to June, 2017. However, on going through the said ER1 returns, no mention of Maize Bran is found in them. The applicant have also quoted a few citations in support of their contention which are reproduced hereunder: (i) Case of United Copiex (India) Pvt.ltd. v/s CST-94 ELT 28(SC) wherein it was held that classification is to be based on statutory definition, if any, and in the absence thereof on trade or common parlance. (ii) As per case of Plasmac Machine Mfg.Co. pvt.ltd. v/s CCE 51 ELT 161 (SC), goods are to be classified according to their popular meaning as understood in the commercial sense and not as per the scientific/technical meaning. (iii) As per case of CCE v/s Favourite Industries-2012(278) ELT 145 (SC), it is a well settled legal proposition of law that liberal construction is to be given to beneficial notification and therefore the production should be classified on the basis of it s use. (iv) As per case of Rhino Machines pvt.ltd. v/s CCE, Vadodara-2005 (181) ELT 63 (T), goods have to be assessed in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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