TMI Blog2022 (10) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... is apparent from the definition of 'agricultural produce' that the government intends to provide exemption to the produce occurring only at the first stage of the cultivation or rearing and not to those which are processed in factories after they are sold by the cultivator/producer. Rate of GST - HELD THAT:- The services provided by a goods transport agency in relation to transportation of cotton seeds in a goods carriage are classifiable under heading 9965 and leviable to CGST @2.5%, provided that credit of input tax charged on goods and services used in supplying the service has not been taken, else @6%, under Sr. No. 9 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. - AAR/GST/PB/021 - - - Dated:- 20-9-2022 - MS. VARINDER KAUR, AND MR. VIRAJ SHYAMKARN TIDKE, MEMBER Hearing Attended by : Sh. S.L. Goyal, Advocate appeard on 11.02.2022 18.02.2022 1. M/ s Ahuja Industries, Dehlon Road, Sahnewal, Ludhiana-141120, (GST Registration No. 03ADNPS0783N1ZZ) is engaged in the business of receiving Cotton Seeds Banaula after being transported by Goods Transport Agencies (GTA) which is classifiable with Chapter Heading 9965/9967 of the GST Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or services or both; (b) Applicability of a notification issued under the provisions of this Act; (c) Determination of time and value of supply of goods or services or both; (d) Admissibility of input tax credit of tax paid or deemed to have been paid: (e) Determination of the liability to pay tax on any goods or services or both; (f) Whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. It is observed that the query of the applicant in para III is related to the question as to under which provision/ section GST is to be charged on GTA services in respect of Cotton seeds, if they are not exempt, fall under definition of 'Agriculture Produce' under GST Act. This question falls under the ambit of Section 97 (2) of the CGST Act,2017, read with Section 97 (2) of the PGST Act, 2017. Hence, the application of the applicant is eligible for a ruling by the Punjab State Advance Ruling Authority. 5. SUBMISSIONS BY THE APPLICANT: - 5.1 The applicant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f agriculture, horticulture, animal husbandry or forest as specified to Schedule to this Act. Further cotton seed (Banaula) has been included as 'agriculture produce' vide Sr. No. 15 in the said schedule. (b) Vide Notification No. 12/2017-Central Tax (Rates) dt. 28.06.2017 exemption has been provided in respect of agricultural produce, firstly, vide entry at Sr. No 21(a)-in respect of GTA services and secondly, vide entry at Sr. No. 54 (g) in respect of services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of the said `agricultural produce.; (c) That even though the nature of exemption granted vide entries at S.No. 21 (a) and 54 (g) is different, the definition of the term `agricultural produce' as given vide para 2(d) of Notification dt. 28.06.2017 is common in respect of both the said entries. (d) That said cotton seeds fall in the ambit of the expression for raw material as used in the definition of agricultural produce as given in para 2 (d) in the Notification No.12/2017dated 28'hJune, 2017. (e) That the elementary law relating to interpretation of any statute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocessing called ginning which debars it from the definition of agriculture produce as per the Notification No. 12/2017-Central Tax (Rates) dated 28.06.2017. There have been instances when terms in different statutes are interpreted in different manner. It depends upon the objectives of the particular statue with which it was enacted. Thus if cotton seed is interpreted as agriculture produce under other Acts ant not under the GST Law could be due to the reason that GST Law is very particular in providing exemptions to certain items only. 7. DISCUSSIONS AND FINDINGS: 1. We have gone through all the case record viz. application of Advance Ruling, relevant Notifications, records and submissions made at the time of personal hearing by the learned Counsel. We have also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. 2. At the outset, we would like to state that the provisions of both the CGST Act and the SGST Act are same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udes a mixture of more than two such products. The Schedule appended to the Act lists out several items which are to be considered as 'agricultural produce'. Cotton seed is one of the items listed in the said Schedule. By virtue of the definition of agricultural produce and because cotton seed is included in the Schedule the market committee levies market fees on purchase/sale of cotton seed. (b) In GST, the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 defines the term 'agricultural produce' as under:- Agricultural produce 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 . (c) In view of the above, levy of market fees on purchase/sale of cotton seed by treating it as agricultural produce under the PAPM Act is correct. However, it does not make cotton seed 'agricultural produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot fulfilled, the party is not entitled to the benefit of that notification. An exception and/or an exempting provision in a taxing statute should be construed strictly and it is not open to the court to ignore the conditions prescribed in the relevant policy and the exemption notifications issued in that regard. 8.2 The exemption notification should be strictly construed and given a meaning according to legislative intendment. The Statutory provisions providing for exemption have to be interpreted in light of the words employed in them and there cannot be any addition or subtraction from the statutory provisions. 8.3 As per the law laid down by this Court in a catena of decisions, in a taxing statute, it is the plain language of the provision that has to be preferred, where language is plain and is capable of determining a defined meaning. Strict interpretation of the provision is to be accorded to each case on hand. Purposive interpretation can be given only when there is an ambiguity in the statutory provision or it results in absurdity, which is so not found in the present case. 8.4 Now, so far as the submission on behalf of the respondent that in the event of am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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