9911796707
TMI Blog2023 (3) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Sugar, Molasses and Ethanol. 2. The applicant has submitted application for Advance Ruling dated 02.11.2022 enclosing dully filled Form ARA-01 (the application form for Advance Ruling) along with annexure and attachments. The applicant in his application has sought advance ruling on following question/clarification- 1. Classification of Sugarcane Juice 2. Rate of GST applicable on sale of Sugarcane Juice. 3. Applicability of a notification which affects the rate of tax if any. 3. As per declaration given by the applicant in Form ARA-01, The applicant is neither pending nor decided in any proceedings under any Act, against the applicant. 4. The applicant has submitted that- (1) We M/s Gobind Sugar Mills Ltd. having GST No 09A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product emerges during the production of Sugar. (2) Now further we are going to sold sugarcane juice without doing any further process to distilleries where they manufactured Ethanol falling under Chapter heading 2207 attract GST @5%. Only raw material for manufacturing of Sugar is sugarcane, falling under Chapter Heading 1212 and attract Nil rate of GST, and also classified under agriculture produce. (3) Relating to Services & Classification of Goods under the definition of agricultural produce. In view of the Notification No.2/20I7-Central Tax (Rate) most of the items related to agricultural produce or of the said category has been classified under the goods listed from SI. Nos. 1 to 137 of Schedule of Goods Rates to Chapter Headin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Heading 9986. As per this notification services relating to cultivation of plants or agricultural produce by way of 'vacant land with or without a structure incidental to its use' is exempted from tax liability. Thus imposing GST on agricultural produce as well as Services related to agricultural produce is unjustified. 6. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Joint Commissioner, (Corporate Cell), State Tax, Lucknow Zone-II vide his letter dated 28.12.2022 submitted following points- (i) Sugarcane is an agricultural product, but the juice (Sugar Syrup) that comes out of sugarcane. It will not come under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicant M/s Gobind Sugar Mills Ltd. having GST No-09AABCG0947NIZA is engaged in manufacturing of Sugar and Molasses. The mam raw material used in manufacturing of sugar is sugarcane. They have sought clarification on following points.- 1 Classification of Sugarcane Juice. 2. Rate of GST applicable on sale of Sugarcane Juice. 3. Applicability of a notification which affects the rate of tax (If Any) 11. For in-depth analysis of present matter, we proceed to discuss the classification taxability and relevant Notification applicable in the impugned issue. Sugarcane juice cannot be classified as Agricultural produce because agricultural produce is defined under explanation (vii) under para 4 of the Notification No. 11/2017 Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at if it is to be attain the secondary market for use and become raw material for production of sugar, molasses etc. Since all the three Conditions of agricultural produce is not fulfilled by sugarcane juice and hence it is not considered to be agricultural produce. The next question arises that if it is not agricultural produce how will it be classified. In this context study shows that sugarcane is neither a fruit nor a vegetable. Sugarcane is usually a type of grass/plant, sugarcane is not the result of flowering plant nor does it develop through seeding. So sugarcane can not be considered as fruit. Sugarcane fiber and stalks can not be eaten or digested, so it does not qualify as a vegetable either. In GST Tariff, goods under chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the heading which occurs last in numerical order among those which equally merit consideration." The Tariff item 2009 contains specific description of Fruit and Vegetable Juices Sugarcane is neither fruit nor vegetable nor nuts but it is covered under other parts of plants as such Rule 3(a) of General Rules for the Interpretation of Import Tariff will apply and the same merits classification under HSN 20098990. Hence sugarcane juice is classified under chapter 20 and tariff item 20098990 which falls in Notification No. 1/2017 Central Tax (Rate) dated 28-06-2017 covered in schedule 2, Sr. No. 41 and taxable at a rate of 6% CGST & 6% SGST or 12 % IGST. 13. Although, there is no specific entry for the product 'Sugarcane Juice in Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
