2018 (12) TMI 141 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 452 (A. A. R. – GST) – Classification of goods – various poultry feed products – whether covered under the HSN CODES 2301, 2302, 2308, 2309 and effectively exempted or not – Held that:- A feed additive is a food supplement for farm animals that cannot get enough nutrients from regular meals. Such additives include vitamins, amino acids, fatty acids, and minerals.
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Animal feed is food given to animal which is essential to the development, sustenance, maintenance etc. On the contrary supplement is added to animal feed in order to improve it or make it complete feed. Similarly additive is a food supplement for farm animal that cannot get enough nutrients from regular meals. Therefore there are large number of products that are added to feed and which are capable of providing nutrient required for animal based upon the nature of husbandry such as meat, milk, egg etc. – the entry 102 of the exemption
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ification no 2/2017 date .28.6.2017 except the HSN Code of 2835.
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Ruling:- The products referred under application are not covered under entry 102 of the notification 2/2017-lntegrated Tax (Rate) dated 28th June, 2017, except Di Calcium phosphate(28352610) of animal feed grade, which is covered under Entry No. 105 of Notification No. 02/2017-(lntegrated Tax) (Rate) The rest of products would fall under Schedule III and would be liable to tax @ 18 % IGST. – GST-ARA-25/2018-19/B-88 Dated:- 14-8-2018 – SHRI B.V. BORHADE AND SHRI PANKAJ KUMAR MEMBER) PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by UTTARA IMPEX PRIVATE LIMITED, the applicant, seeking and advance ruling in respect of the fol
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eed supplements and animal feed additives, grass, hay, straw, cotton seed oil cakes excluding other oil cakes and all varieties of de-oiled cakes covered under entry No. 4 of Schedule A to the MVAT Act, 2002. The products under this heading were exempted. Under GST also there is similar description Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of puIses, concentrates & additives, wheat bran & de-oiled cake in the exemption Notification No. 2/2017-lntegrated Tax (Rate) dated 28th June, 2017, Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017 and Notification No. 2/2017-Union Territory Tax (Rate) dated 28th June, 2017 under HSN codes 2301, 2302, 2308, 2309. However, we are facing some ambiguity in correct classification of our products. In our view it shall be covered under the aforesaid HSN codes and effectively the products will be exempted. However, due to different techn
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ment of the Hon ble High Court of Karnataka in the case of G.K. Chickanarasimhaiah Vs State of Mysore reported in (1971) 28 STC 94 = 1970 (7) TMI 64 – MYSORE HIGH COURT and that of the Hon ble High Court of Andhra Pradesh Vs Balaji Poultry Agencies reported in (1991) 82 STC 353 = 1991 (3) TMI 345 – ANDHRA PRADESH HIGH COURT it is argued that the opinion of experts is a safe guide and a valuable source in interpreting and deciding as to whether the commodities are animal feed supplement. Copies of the opinion of the following experts are enclosed herewith in support of the contention of the applicant:- 1. Guangdong VTR Bio-tech Co. Ltd., China. 2. Sinochem Yunlong Co. Ltd., China. 3. Hulunbeier Northeast Fufeng Biotechnologies Co. Ltd., China. 4. Ajinomoto Eurolysine S.A.S., USA. 5. Alzchem Nutrition Gmbh, Germany. The expression, Animal feed and feed supplement , used in the entry 5(i) of the First Schedule to the Act has not been defined or assigned any meaning under the said Act and
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ated Tax (Rate) dated 28th June, 2017, Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017 and Notification No.2/2017Union Territory Tax (Rate) dated 28th June, 2017 under HSN codes 2301, 2302, 2308, 2309. It is evident from the above description that only those animal feed and feed supplements that are named therein are to be treated as covered by this HSN codes and those not named therein are to be excluded from the above HSN codes. A Feed supplement is a commodity that supplements animal feed. Also it can be noted from import documents that the products are imported and commercially traded as animal feed and feed supplements. The certificates issued by various companies clearly state that the aforementioned products are used as animal feed and feed supplements and these are not for medicinal use or human consumption. The certificates issued by quality control department of following above said companies are submitted on record. In the case of Commissioner of Commercial
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ition or technical description, interpretation ought to be in accordance with common parlance principle and not according to scientific and technical meanings. It was held that even though softy serve have dairy content but in common parlance it known as ice cream and shall not be classified as other dairy produce , The same principal may be applied in the applicant s case also. That even if as per the technical description the products can be classified under any other heading but the products are finally used as poultry feed supplements. 2. Shree Baidyanath Ayurved Bhawan Ltd. 2009 (SC) = 2009 (4) TMI 6 – SUPREME COURT (The copy of said judgment is enclosed herewith):- It was held that Lal Dantmanjan is used routinely for dental hygiene. It is not medicament/medicine as ordinarily medicine is prescribed by medical practitioner and is for limited use only. The same principal may be applied in the applicant s case also. That even if as per the technical description the products can be
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/drum of these products shall be labeled as Animal Feed Supplement Only & Not For Medicinal Use . We urge you to please take above facts on record and provide us the clarity on classification of our products under GST regime. In addition to submissions made earlier, applicant also intends to submit the following: We Uttara Impex Private Limited ( UIPL or Company or Applicant or We ) holding GSTIN 27AABCU0589J120, mainly engaged in trading of various poultry feed products have filed above mentioned application for advance ruling. In the course of its business the products namely DL Methonine, Bicarbonate, Phytase, Betaine, Monodicalcium, Tryptophan, UT Vit 50, Threonine, Lysine and Creamino are imported by us. The said products are feed supplements for consumptions as poultry feed only and are not capable of being used for any other use. With respect of above products, the Company has made an application for obtaining advance ruling under section 96 of the CGST Act 2017 to sought t
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same and do hereby certify that the goods as per below table are such which can be used in preparation of poultry feed. These are additives and supplements to poultry feed. Details of goods, its ingredients and nutrition value is as tabled below – Sr.No. Name of the product Ingredients Nutritional value Remarks as to why it can be used in poultry feed 1. DL-Methionine (Feed Grade) Methionine Act as methyl donor and used in protein synthesis. Essential Amino acid. Methionine is a limiting and essential amino acid in poultry. so, need to supply through feed as feed supplement to meet standard requirement of birds for their body maintenance and egg/meat production. 2. Sodium Bicarbonate (Feed Grade) Sodium To maintain Acid- balance in body (NRC, 1994) Sodium bicarbonate used as source of sodium to maintain acid-base balance in poultry feed. Sodium required for maintains of dietary electrolyte balance in poultry feed. 3. L-lysine (Feed Grade) Lysine Essential Amino acid and used in protein
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rd requirement of birds for their body maintenance and egg/meat production. 7. L- Threonine (Feed Grade) Threonine Essential Amino acid and used in protein synthesis. Threonine is a limiting and essential amino acid in poultry to meet standard requirement of birds for their body maintenance and egg/meat production. 8. Sodium sulphate (Feed Grade) Sodium To maintain Acid-balance in body Sodium Sulphate used as source of sodium to maintain acid-base balance in poultry feed. Sodium required for maintains of dietary electrolyte balance in poultry feed. 9. Lysine Sulphate (Feed Grade) Lysine Essential Amino acid and used in protein synthesis. Lysine is a limiting and essential amino acid in poultry so need to supply through feed as feed supplement to meet standard requirement of birds for their body maintenance and egg/meat production. Source: Requirement of above nutrients are adapted from Applied Nutrition by DV Reddy and research papers. Further we have attached herewith following docume
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G – CLASSIFICATION OF GOODS. UTTRA IMPEX PRIVATE LTD is engaged in trading of various poultry feed products But company is facing some ambiguity in correct classification of Products (which are those products is not specified in question). In companies view products shall be covered under the HSN CODES 2301, 2302, 2308, 2309 AND effectively products will be exempted. However due to technical description of the products, there can be another school of thought and the tax may be levied at different rates by revenue authorities on the said products. SUBMISSION AND VIEW OF JURISDICTIONAL OFFICER- From the reading of application/ANNEXTURES submitted by the dealer, it is observed that; 1) The dealer is trading in Poultry feed products which are covered by CGST notification No. 2/2017. On which whole of central tax is exempted. The relevant entry is as follows: Sr.No. Chapter Heading Description of goods. 102 2303, 2304, 2305, 2306, 2308, 2309 Aquatic feed including shrimp feed and prawn feed
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which GST is Ievied, which are related/similar to Poultry feed. These goods though not included in above mentioned poultry feed CGST notification No. 2/2017, GST shall not be levied on these goods also. According to dealer on the import documents, it is specified that these products are not for food or not for human consumption and those are of feed grade category, hence shall be classified under poultry feed and shall get exemption from GST. 4) Tax under GST levied as per commodity classified under HSN CODE and as per notification under the law only commodities covered by HSN CODE NO. 2302, 2304, 2305, 2306, 2308 and 2309 are classified as POULTRY FEED and exempted from GST. Thus while classifying poultry feed, law has excluded some entries like 2303/2307 from same HSN CHAPTER NO 23. On this background commodities which are classified and declared as taxable under HSN NO 2930/2922/3004 CANNOT BE CLASSIFIED AS POULTRY FEED. 5) The dealer s contention is not tenable. There are specific
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perations and Sh. Rushabh Gondha, C.A. and Sh. Arjun Madnurkar, Sr. Technical Manager appeared and made oral and written submissions. They were requested to give detailed write-up, Catalogue and composition of the products under present proceedings and whether they are of chemical origin or otherwise individually latest by 12.08.2018 without fail. The Jurisdictional Officer was not present but telephonically informed that their earlier submissions may be relied upon. 05. OBSERVATIONS- We have gone through the facts of the case and the submissions made by the applicant and the department. We find that – 1) Applicant is mainly engaged in trading of various poultry feed products. In the course of its business the products namely DL Methionine, bicarbonate, Phytase, Betaine, Monodicalcium, Tryptophan, UT Vit 50, Threonine, Lysine and Creamino are imported by the applicant. Applicant submits the said products are feed supplements for consumption as poultry feed only and are not capable of b
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to take call on whether impugned products are covered by the description of goods mentioned in the entry – 102 and in particular poultry feed, cattle feed, supplement, concentrate and additives. We also find that other products covered by the said entry are self-explanatory and require no discussion. Further we find that the expression which are central point of discussion i.e. poultry feed, animal feed, supplement, concentrate and additives are not defined in the statute or in the notification issued under the Act. As such we may refer the Wikipedia or dictionary to understand these expressions: Definition of feed – as per dictionary to furnish something essential to the development, sustenance, maintenance, or operation of reading feeds the mind CAMBRIDGE DICTIONARY to give food to a person, group, or animal As per WIKIPEDIA Animal feed Animal feed is food given to domestic animals in the course of animal husbandry. There are two basic types: fodder and forage. Used alone, the word f
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be broadly classified as concentrates and roughages, depending on their composition. Concentrates are feeds that contain a high density of nutrients, usually low in crude fiber content (less than 18% of dry matter (DM)) and high in total digestible nutrients. Roughages are feeds with a low density of nutrients, with a crude fiber content over 18% of DM, including most fresh and dried forages and fodders. Concentrates may be high in energy, referred to as energy concentrates, such as cereals and milling by-products, or high in protein, with over 20% crude protein, referred to as protein concentrates. Concentrates may be fed in raw or milled forms as individual feeds (sometimes referred to as straights), or may be blended or formulated into balanced rations for particular production purposes (compound CONCENTRATE MEANING MERRIAM WEBSTER DICTIONARY a feedstuff (such as grains) relatively rich in digestible nutrients ADDITIVES MEANING. CAMBRIDGE ENGLISH DICTIONARY a substance that is added
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oviding nutrient required for animal based upon the nature of husbandry such as meat, milk, egg etc. Further we find that entry 102 of the exemption notification is not open ended. It cover those goods that are falling under chapter Heading 2301, 2302,2304,2305,2306,2308 and 2309 and which satisfy the description of goods as animal feed, supplement, concentrate and additives. These imported goods alone are eligible to avail the benefit of tax exemption under the GST ACT. It is therefore imperative to examine in detail chapter 23 of the CET – We find that Chapter 23 is related to the Residual and Waste from the food Industries prepared Animal fodder and therefore goods classifiable under the tariff codes as stated above are only covered and eligible for exemption benefit under entry no. 102 of the exemption notification mentioned above. Thus the benefit under Entry No. 102 is restricted as above:- We find that the details of tariff code (HSN) and its description as per tariff are as und
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crustaceans, molluscs or other aquatic invertebrates : Fish meal, unfit for human consumption: 23012011 In powder form 23012019 Other 23012090 Other 2302 BRAN, SHARPS AND OTHER RESIDUES, WHETHER OR NOT IN THE FORM OF PELLETS, DERIVED FROM THE SIFTING, MILLING OR OTHER WORKING OF CEREALS OR OF LEGUMINOU S PLANT 2302 BRAN, SHARPS AND OTHER RESIDUES, WHETHER OR NOT IN THE FORM OF PELLETS, DERIVED FROM THE SIFTING, MILLING OR OTHER WORKING OF CEREALS OR OF LEGUMINOUS PLANTS 230210 – Of maize (corn) : 23021010 Maize bran 23021090 Other 23023000 – Of wheat 23024000 – Of other cereals 23025000 – Of leguminous plants 2304 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya bean oil 2305 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of ground-nut oil 2308 00 00 VEGETABLE MATERIALS AND VEGETABLE WASTE, VEGETABLE RESIDUES AND BY-PRODUCTS, WHETHER OR NOT
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1040 Oil-cake and oil-cake meal, undecorticated, solvent extracted (defatted) variety 23061090 Other 230620 – Of linseed : 23062010 Oil-cake and oil-cake meal, expeller variety 23062020 Oil-cake and oil-cake meal, solvent extracted (defatted) variety 23062090 Other Further applicant as per instructions during the course of proceedings had made submission with respect to each of his products such as Name of supplier, origin, process under taken by the supplier and catalogue. On the basis of above, it is evident from the description of animal feeds that only those products that merit classification in the corresponding to HSN code as per details above are eligible for exemption from payment of GST vide entry 102 of the exemption notification. On perusal of chapter 28 & 29 of the Customs Tariff Act we find that goods covered therein are Organic and in organic chemicals and further we find that the products requested for classification in ARA are squarely covered by chapter 28 and
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nates (hypophosphites) and Phosphonates (phosphites) : 28351010 Calcium hypophosphite 28351020 Magnesium hypophosphite 28351090 Other – Phosphates : 28352200 – Of mono-or disodium 28352400 – Of potassium 28352500 – Calcium hydrogenorthophosphate ("dicalcium phosphate") 283526 – Other phosphates of calcium : 28352610 Calcium monobasic phosphate 28352620 Calcium tribasic phosphate 28352690 Other 283529 – Other : 28352910 Magnesium phosphate, monobasic 28352920 Magnesium phosphate, dibasic 28352930 Magnesium phosphate, tribasic 28352940 Sodium hexametaphosphate 28352990 Other – Polyphosphates : 28353100 – Sodium triphosphate (sodium tripoly-phosphate) 28353900 – Other From the above table we find that the description of goods against chapter Heading 2835 as mentioned at Sr. No. 105 of exemption notification 2/2017 Integrated Tax (Rate) dated 28/6/2017 covers only Di calcium Phosphate (DCP) of animal feed grade confirming to IS specification No. 5470:2002. As such appl
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IGST. However the product Di Calcium phosphate (2835 2610) would fall under Sr. no. 105 of notification no 2/2017-Integrated Tax (Rate) dated 28/06/2017. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA- 25/2018-19/B-88 Mumbai, dt. 14/08/2018 For reasons as discussed in the body of the order, the questions are answered thus – Question: – Classification of our products under GST regime Answer :- The products referred under application are not covered under entry 102 of the notification 2/2017-lntegrated Tax (Rate) dated 28th June, 2017, except Di Calcium phosphate(28352610) of animal feed grade, which is covered under Entry No. 105 of Notification No. 02/2017-(lntegrated Tax) (Rate) The rest of products would fall under Schedule III and would be liable to tax @ 18 % IGST. – Case laws – Decisions – Judgement
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