IN RE : INDO PROSOYA FOODS (P) LTD.
GST
2018 (10) TMI 306 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (17) G. S. T. L. 35 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – AAR
Dated:- 25-5-2018
Order No. 6
GST
Shri Sanjay Kumar Pathak, Member (State Tax) and Dinesh Kumar, Member (Central Tax)
ORDER
M/s Indo Prosoya Foods (P) Ltd., 54/10, Naya Ganj, Kanpur, Uttar Pradesh – 208001 ((hereinafter called the applicant) is a registered assessee under GST Having GSTN : 09AAACI8129B1ZS.
2. The applicant is engaged in the business of purchases of Mahua oil cake/Rice Bran for extraction of oil through solvent extraction process.
3. Initially the applicant has submitted application for Advance Ruling on 10-1-2018. On scrutiny of the application, it was found that they had a fee of Rs. 5,000/ only, whereas the applicant was required to pay a fee of Rs. 5,000/- each under the CGST & SGST. They have paid balance amount of Rs. 5,000/- on 2
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hich oil is the primary product and De-oiled Mahua Cake/ De-oiled Rice Bran is obtained as by-product. The raw material used by the applicant are classified under the following HSN Code :-
Oil seed – 1207
Oil Cake – 2306
Rice Bran – 2302.
b. After processing, product manufactured by using the above said raw material is solvent extracted oil, which is classified under HSN 1515.
c. The solvent extracted oil is obtained after palletisation and various other processes. Mahua oil cake/Rice Bran is fed to solvent extraction plant for extraction of oil through Hexane.
d. Hexane goes to solvent recovery system balance. De-oiled Mahua Cake/ De-oiled Rice Bran is obtained as a by-product, which are wholly used as ingredient of fish meal/ cattle feed.
e. Mahua De-oiled Cake is used for fish feed, fish farming and other aquatic uses, which is wholly used for the above purpose. De-oiled Rice Bran is used for cattle-Feed, Poultry Feed and other animal Feeds, which a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ther”.
Further, towards the Heading 1522, which is residue resulting from treatment of fatty substances in respect of goods of the same chapter.
8. In reference to Input [Tax] Credit (ITC) of GST paid on goods/services, Section 17(2) CGST Act, 2017 is reproduced below –
'”Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies”.
That means when common inputs are being used for both taxable and exempted supplies, the party is required to reverse the credit proportional to the amount of credit pertaining to the exempted supplies. ITC can be availed only on goods and services for business purposes. If they are used for
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
CentraI Tax (Rate), dated 28-6-2017
Sl. No.
Chapter/ Heading/ Sub-heading/ Tariff item
Description of Goods
102.
2302, 2304, 2305, 2306, 2308, 2309
Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake
12. The above notification has been amended vide Notification 7/2018- Central Tax (Rate), dated 25-1-2018 inserting an Entry 102A, which reads as under –
In the said notification,
(1) in the Schedule,
(i) in S. No. 102, for the entry in column (3), the entry “Aquatic feed including shrimp feed & prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake [other than rice-bran]”, shall be substituted;
(ii) for S. No. 102A and the entries relating thereto, the following serial number and the entries shall be inser
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rpose it can be classifiable in 2309 and De-oiled rice bran has been seen in its usage in largely cattle feed, poultry and fish feed and it appears as classifiable in Chapter 2308. The input credit of GST paid on raw materials is not allowable in the present case since; the party is manufacturing taxable as well as exempt supply. ”
15. In view of the above, we rule as under :
RULING
16. The point-wise clarifications are as under :-
(a) Whether Mahua De-oiled cake/ De-oiled Rice Bran being used as an ingredient of Cattle Feed, Poultry Feed and other animal feeds and is 'Waste generated' during the solvent extraction process?
Ans. – Mahua De-oiled cake/De-oiIed Rice Bran is a by-product occurred during the solvent extraction process, which is used as an ingredient of Cattle Feed, Poultry Feed and Other animal feeds.
(b) Whether the applicant is eligible to get entire tax input credit of GST paid on purchase of Mahua Oil Cake/ Rice Bran Oil cake used in the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
