TMI Blog2021 (4) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... mered to deseed and destring for extraction of the endocarp/pulp of the Tamarind. This process is not done at farm level. It is clone as a Cottage Industry as furnished in the affidavits of the Traders and the Oath of allegiance of the Farmers to whom the storage services are extended by the applicant. Therefore, as clarified in the Circular above, the Tamarind which is processed by sun drying, deshelling, deseeding, the process which are not farm level processes, is not an Agricultural Produce as defined under explanation 2(d) of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017. Once the product for which the storage services are extended is held to be not an agricultural produce , then the exemption at Sl.No. 54 of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 is not available to the product, irrespective of the class of receivers of the service. The Tamarind inner pulp without shell and seeds is not an Agricultural produce as defined under explanation 2(d) of the Notification No. 12/2017- C.T.(Rate) dated 28.06.2017 and therefore the service of cold storage of such tamarind are not exempted under Sl.No. 54(e) of Notification No. 12/2017-C.T. (Rate) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duce means 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. They have stated that the tamarind is primarily produced or cultivated by small farmers who remove the shell or the upper part and bring the inner part (which is the consumable part of Tamarind) for sale. The Tamarind may or may not come for storage with seeds. They have submitted that incase of tamarind, the pod is cracked open, string(fibre) is removed and kernel is taken out. Thus, the resultant tamarind comes under definition of agricultural produce. The shelling and removal of seeds to obtain the pulp is usually done by the farmers. Hence, the inner pulp without shell and/or seeds comes under the purview of definition of Agricultural produce as it does not lose its essential characteristics. Hence, the applicant has stated that the services of storage or warehousing of such produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x on tamarind They came to know that there are two advance rulings on cold storage service of tamarind: One is Rajasthan Advance Ruling No. RAJ/AAR/2018-19 dated 11/06/2018 wherein it is ruled that the processing of tamarind had to undergo a specially designed machinery process and therefore this service is taxable Andhra Pradesh Advance Ruling No. AAR/AP/02(GST)/2018 dated 28/03/2018 wherein it is ruled that the cold storage service of agriculture produces such as chillies, whole pulses, Apples, potato, raw cashew nots, oil seeds, maize, tamarind, millets, cattle feed, food grains etc., is exempted from tax under GST and exemption shall cover both traders and farmers The process of removal of shells and seeds are only done by manually as the tamarind has stickiness even after drying in sunlight. Due to the stickiness of tamarind, the process through machinery is not possible. The tamarind are primarily produced or cultivated by small farmers who remove the shell or the upper part and bring the inner part for sale. The tamarind may or may not come for storage with seeds. The inner pulp without shell and/or seeds come under the purv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roove is cultivated and maintained by them; the process of collecting the fruit of tamarind from the tree, removal of shell and seeds are done manually using hammers as a Cottage Industry relying only on Human Resources and no machineries are deployed; The tamarind after removal of the shell and seed only becomes marketable; The essential characteristics of this tamarind remains the same when sold to wholesale/retail traders and in the hands of consumers for use in the kitchen. The applicant has made references to the Advance Rulings issued by the following AARs Rajasthan ARA in the case of Sardar Mal Cold Storage Ice Factory Order No. RAJ/AAR/ 2018-19 dated 11.06.2018 - wherein the authority has held that Tamarind when harvested from tree consists of brittle outer shell which encapsulates the pulp and enclosed seed which in turn are sold by farmer in the Primary Market. Shelling and removal of seeds to obtain the pulp is usually done by specially designed machines. Hence inner pulp without shell and seeds do not fall under the definition of Agricultural produce . This finding stands upheld by the Appellate Authority. Andhra Pradesh ARA M/s SSSVK Cold Storage P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imal husbandry mean - Services relating to 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 or agricultural produce by way of- (a) (b) . (e) loading, unloading, packing, storage or warehousing of agricultural produce; Nil - Notification 12/2017 CT(Rate): SI.No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 54 9986 Services relating to 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 or agricultural produce by way of- (a) (b) (e) loading, unloading, packing, storage or warehousing of agricultural produce; NIL 54 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produce. 6. Pulses commonly known as dal are obtained after dehusking or splitting or both. The process of dehusking or splitting is usually not carried out by farmers or at farm level but by the pulse millers. Therefore pulses (dehusked or split) are also not agricultural produce. However whole pulse grains such as whole gram, rajma etc. are covered in the definition of agricultural produce. 7. In view of the above, it is hereby clarified that processed products such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (dehusked or split), jaggery, processed spices, processed dry fruits, processed cashew nuts etc. fall outside the definition of agricultural produce given in notification No. 11/2017-CT(Rate) and 12/2017-CT(Rate) and corresponding notifications issued under JUST and UGST Acts and therefore the exemption from GST is not available to their loading, packing, warehousing etc. and that any clarification issued in the past to the contrary in the context of Service Tax or VAT/ Sales Tax is no more relevant 7.4 From the above the following are evident: Support service to agriculture mean Services relating to agricultural pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct stored is processed by drying the same in the sun and then by beating with wooden sticks to remove the pod and hammered to deseed and destring for extraction of the endocarp/pulp of the Tamarind. This process is not done at farm level. It is clone as a Cottage Industry as furnished in the affidavits of the Traders and the Oath of allegiance of the Farmers to whom the storage services are extended by the applicant. Therefore, as clarified in the Circular above, the Tamarind which is processed by sun drying, deshelling, deseeding, the process which are not farm level processes, is not an Agricultural Produce as defined under explanation 2(d) of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017. Once the product for which the storage services are extended is held to be not an agricultural produce , then the exemption at Sl.No. 54 of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 is not available to the product, irrespective of the class of receivers of the service. 7.6 The Advance Ruling is specific to the applicant only. However, on perusal of the Ruling furnished by the Andhra Pradesh Authority, it is seen that the said authority has ruled that the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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