In Re: Nutan Warehousing Company Private Limited
GST
2018 (8) TMI 1073 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2018 (16) G. S. T. L. 139 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – AAR
Dated:- 23-5-2018
GST-ARA-30\/2017-18\/B-38
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
\nPROCEEDINGS
\n(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nThe 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 NUTAN WAREHOUSING COMPANY PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following issues.
\n1. Whether Exemption provided in serial no. 54 to Notification No. 12\/2017-Central Tax (Rate) is applicable to the activity carried by the company?
\nAt the outset, we would like to make it clear that the<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n LAW AND\/OR FACTS AS THE CASE MAY BE, IN RESPECT OF AFORESAID QUESTION(S)(i.e.) APPLICANT'S VIEW POINT AND SUBMISSIONS ON ISSUES ON WHICH THE ADVANCE RULING IS SOUGHT) AND AS PER SUBMISSION DT. 10.04.2018 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n red in bulk, either from public tea auctions or directly from manufacturers of tea is an agricultural produce as defined in clause 2(d) of the Notification No. 12\/2017-CT (Rate) dated 28.6.2017. Further, storage & warehousing of tea post procurement, blending and packing undertaken by M\/s Unilever is exempted under E. No. 54(e) of the Notification No. 12\/2017-CT (Rate) dated 28.6.2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ea is exported to overseas countries. Applicant claims that the storage and warehousing of tea is exempted vide Serial No 54(e) of Notification No. 12\/2017- Central tax (rate). The said entry is reproduced as under = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e for primary market; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n aves consists of only above processes and not beyond them. All the three ingredients are fulfilled in the present case. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n it for marketing when by a minimal process they are made fit for human consumption. Processes were necessary for the purpose of saving the tea-leaves from perishing, making them fit for transporting and marketing them. The process applied was minimal. Withering, crushing and roasting the tea-leaves will be surely necessary for preserving them. The process of fermentation or final roasting with charcoal for obtaining suitable flavour or colour and also the process of grading them with seives were all within the region of minimal it no point of time it crossed that limit and robbed the tea-leaves, the agricultural produce, of their character of being and continuing as such substantially. These processes are normally done by the cultivator or the producer, hence the second ingredient is also satisfied. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n after drying and processing remained agricultural produce.. Similar view had been expressed by the Hon'ble Uttaranchal High Court in case of Dehradun Tea Company Ltd. vs State Of Uttaranchal And ors. [2006 148 STC 56 Uttra) (Annexure-2). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s well. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e) and corresponding Notification issued under IGST and UGST Act and therefore the exemption from GST is not available to their loading, packing, warehousing etc. and that any issued in the past to the contrary of Service Tax or Vat\/SaIes Tax is no more relevant. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n to the activities carried out by the applicant, the definition of agriculture produce, clearance of tea stored in EOU and category of the service recipient is to be discussed as under. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n . 99(2001)\/SEEPZ\/EOU\/80\/2001-05\/5 valid upto 31\/03\/2022, it means the possession \/ control of the premises is with 100% EOU. In this case, the status of applicant is Service Provider and received consideration for providing services as mentioned in Answer to Question No. 14. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e applicant's interpretation of law is based on the legal provisions which were valid up to 30.06.2012. The changes made by the Govt. in the definition of Agriculture Produce after 01.07.2012 and nature and category of service recipient is not considered while filling application under Advance Ruling. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the deptt. started investigation on 10th January 2018 by issue of letter for submission of documents. However, the applicant have filed application for advance ruling on 25th January 2018 which is much later than the action initiated by deptt. for investigation. It is also noticed that the Registered office of the applicant as per Service Tax Registration is at Krishi Bhavan, 1379, Bhavani Peth, Pune- 411042 falling under the jurisdiction of Swargate Division. However, the applicant has willfully shown the address of Registered office at the time of GST Registration as Krishi Bhavan, 1379, Bhavani Peth Pune 411002 by quoting wrong PIN code falling under Shivajinagar Division to mislead the deptt. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ion Certificate bearing No. No. AAACN7084LST001 on for storage and warehousing services and the same is valid till date. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n factory and sale in the open market as well as in overseas countries, the service provided by the applicant to Business activity is not treated as service provided to agricultural produce hence there is not exemption from payment of service tax\/GST. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g, refining, oxidation, packing etc on green leaf and is the processed output of the same. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Commissioner of Sales Tax Vs. D.S. Bist and others dated 11.09.1979 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n packed tea manufactured by M\/s. Unilever India Export Ltd. which comes to applicant's warehouse in packed form ready for tertial market. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ontentions made in ARA. During hearing Jurisdictional Officer, Sh. Sachin Ghagare, Asstt. Commr. Division-II (Swargate) Pune-II, CGST Commissionarate, Pune also appeared and made written submissions and contended that investigations against the applicant is already going on and therefore their application is required to be rejected. Further he was requested to produce documentary evidences in respect of initiation of investigation at the earliest. The applicant was also requested to submit their contentions and written submissions in this regard. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g unloading, packing, storage of agricultural produce. The Applicant is seeking the advance ruling in relation to whether exemption as per Serial No.54 of Notification No.12\/2017 Central Tax (Rate) is applicable to the activity carried out by the company or not? The Notification 12\/2017 is reproduced herein below. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n less the context otherwise requires, the Definition of agricultural produce for the purpose of Sr.54 of Notification No. 12\/2017 under the GST law is as under- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n . = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n processing of raw tea leaves into tea results in emergence of a new product having distinct name i.e. Tea, which has distinct name, character and use i.e. Lipton Pure and Simple 100s Tea bags. As such the impugned activity is a 'manufacture' as defined in clause (72) of section 2 of the GST Act. The final product considering various processes undertaken by M\/s. Unilever cannot be considered as Agricultural Produce. Both the applicant as well as Jurisdiction Officer have cited several judgments in support of their contentions which we have already referred in their submissions portion but we find that the decision cited by the applicant are not applicable to the facts of the case and hence not discussed. However, the decision of Income Tax Appellate Tribunal, Kolkatta in the matter of Narendra Tea Co. (P) Ltd Vs. Assesse dated 20\/07\/2017 is a direct authority on the issue. In this case on reference by Division Bench, Special Bench was constituted and following question was refe<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ion u\/s. 10B of the Act as prayed for. Further the judgments cited by the jurisdictional office namely Union of India Vs. Belgachit Tea Co. and Brook Bond Lipton India Ltd cited supra support the view that 'Tea' is a manufactured product and not agricultural produce. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Nutan Warehousing Company Private LimitedGST2018 (8) TMI 1073 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2018 (16) G. S. T. L. 139 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – AARDated:- 23-5-2018GST-ARA-30\/2017-18\/B-38 GSTSHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax … Continue reading “In Re: Nutan Warehousing Company Private Limited”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13300","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13300"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13300\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nBrief Facts submitted by applicant on 10.04.2018
\n1. M\/s. Nutan Warehousing Company Pvt Ltd (hereinafter referred to as applicant) is a company formed for following main objective
\na) To carry on the business of warehousing, cold storage and refrigeration in all its branches and activities and sphere.
\nb) To carry on the business of storage of fertilizers, insecticides, quality seed, agricultural and horticultural equipment, tool and machinery.
\nc) To carry on the business of quality seeds and develop quality seeds, acquire suitable lands and carry on agriculture.
\nd) To produce material and fertilisers and insecticides and acquire agency in the above lines and act as commission agents.
\ne) To act as clearing and godowns for proper and safe storing of valuable agricultural and hor<\/p>\n
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\n5. Based on this understanding, applicant had neither taken GST registration nor discharged the GST liability. After, insistence from Applicant's client, M\/S Unilever, applicant had taken registration and regularly discharging GST liability.
\n6. As the applicant had a serious reservation regarding taxability of renting of warehouse as the warehouse is used for warehousing of tea, an agricultural produce. Under this background, the applicant had requested for advance ruling on
\n“Whether the supply of warehouse services used for packing & storage of tea, under above mentioned facts & circumstances wa<\/p>\n
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\n54
\nHeading 9986
\nServices 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
\n(a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;
\n(b) supply or farm labour;
\n(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
\n(d) renti<\/p>\n
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\n11. Before, going into interpretation, it is essential to mention the process involved in making green leaves marketable in form of tea-
\nTea leaves are plucked from the tea plants and the green leaves plucked from the tree are not fit for the human consumption and it cannot be sold in the open market for human consumption. The raw tea leaves are withered by exposure in the shadow of the sun or by heating in trays until pliable. Thereafter the leaves are rolled by hand or machine in order to break the leaf cells and liberate the juices and enzymes. Finally, the leaves are completely dried either by further exposure to the sun, over fires, or in a current of hot air then the tea leaves are fermented in baskets, glasses and in clothes. Thereafter the leaves were then subjected to grading with sieves of various sizes. The said leaves are finally roasted with charcoal for obtaining suitable flavour and colour. Thereafter the said tea is packed in the bulk packs.
\n12<\/p>\n
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\na) The produce must emerge from cultivation of plants or rearing of all life forms of animals-Green leaves are plucked from the tea plant. Hence the first condition is undoubtedly fulfilled.
\nb) Either no further processing is done or such processing is done as is usually done by a cultivator or producer on the said produce.
\n14. Tea leaves are plucked from the tea plants and the green leaves plucked from the tree are not fit for the human consumption and it cannot be sold in the open market for human consumption. The raw tea leaves are withered by exposure in the shadow of the sun or by heating in trays until pliable. Thereafter the leaves are rolled by hand or machine in order to break the leaf cells and liberate the juices and enzymes. Finally, the leaves are completely dried either by further exposure to the sun, over fires, or in a current of hot air then the te<\/p>\n
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\n17. The process undertaken does not alter its essential characteristics.
\nThe tea leaf remained what it always was. It was tea leaf when selected and plucked and it continued to be tea lea<\/p>\n
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\n19. C(ii) The processes undertaken makes it marketable for primary market. The process undertaken is seen from the submission on record. it is not repeated herein it is the not direct activity link with cultivation.
\n20. Circular cannot override the Notification.
\nNotifications are issued using the subordinate legislative power and are tabled in parliament. Circulars are issued for clarifying the issue, which had been dealt in the Act\/rule\/notification in a legal language. Circulars are issued by authority expressing their view point. It cannot override the Notification. Any circular contrary to the law (including notification) is non est in the eye of the law. It is neither binding on the department nor on the Assessee. The applicant intend to re<\/p>\n
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\nTherefore, tea was an agricultural produce during entire service tax regime.
\nIn light of the above, he pray for passing the appropriate order.
\nAddition submission by Applicant dated on 11.05.2018.
\nPlease refer to our application reference No. 30 dated 23.2.2018 in respect of which, hearing was held before you on 24.4.2018 and our earlier letter dated 3.5.2018 on the above subject. During the hearing, we were directed to submit documents\/data from M\/s Unilever Export, Pune within ten days from the date of hearing. Accordingly, M\/s Unilever Export had been requested to submit the same.
\nWe are pursuing the matter with the M\/s Unilever Export. However, we are yet to receive the complete reply as M\/s Unilever Export are in a process of shifting their activity from our premises to Dubai. It is therefore requested to grant us some more time to submit the same. Accordingly, the detail process was submitted on record is considered while passing of order. Hence it is not repeated a<\/p>\n
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\nApplicant have obtained online Service Tax Registration No. AAACN7084LST001 on 29.06.2005 for providing Taxable Service under the category of Storage and Warehousing Services. They are providing services in the nature of Warehousing and storage viz. storing Tea Bags (manufactured)in various format such as Service Sachet, Sqeezables, Herbals, Infusion, Flavoured Tea, Packet Tea and blended tea and receiving consideration on account of Warehousing charges, Service Charges, Lease Rent, other charges and Transport charges from M\/s. Unilever India Exports Ltd. 100% EOU. Further applicant vide their letter date 13.10.2017, 15.12.2017 02.02.2018 informed this office that they are providing warehousing services 100% EOU viz. Unilever<\/p>\n
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\nThe definition of Agriculture Produce as per Section 65B (5), for the purpose of clause (102) of 65, w.e.f. 01.07.2012 in Service Tax is as under
\n*Agriculture produce means any produce of agricultural 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 marketable for primary market
\nThe Definition of agricultural produce for the purpose of Sr.54 of Notfn No. 12\/2017 in GST is as under-
\n” 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<\/p>\n
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\nThe Tea stored in 100% EOU is manufactured packed in bags in the factory and exported, and the exemption is applicable only to the agriculture produce which are marketed in primary market therefore the exemption claimed by the applicant is not applicable As per the balance sheet,the service wise income received from M\/S. Unilever India for the period 2013-2014 to 2015-2016 is as under –
\nCategory of service provided
\n2013-2014
\n2014-2015
\n2015-2016
\nWarehousing charges
\n2979264
\n3507604
\n55000
\nService charges
\n19440003
\n19059D984
\n23037450
\nLease Rent
\n8947365
\n7572675
\n8883305
\nOther charges
\n340920
\n167280
\n559320
\nTransport charges
\n11310000
\n3069800
\n6288000
\n Zero copies of extract of Note 14 of Balance<\/p>\n
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\nThe definition of “Agricultural produce” as defined under Section 65B (5), for the purpose of clause (102) of Section 65, w.e.f. 01 .07.2()12 in Finance Act, 1994 is as under:
\n” 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;”
\nFurther Board vide Circular No. 16\/16\/2017-GST issued under F.No.354\/173\/2017-TRU dated 15.1<\/p>\n
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\nThus the applicant, by mentioning the wrong Pin Code as 411002 instead of 411042 for the same address in GST Registration, the applicant has tried to mislead the deptt. for hiding the evasion made in past period from 01\/07\/2012 to 30.06.2017 with intention to make the loss to the Govt. exche<\/p>\n
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\nIt is therefore requested to consider the legal provision of the Service Tax\/ GST\/ Foreign Trade Policy while taking the decision on the application as evasion of tax made by the applicant involves revenue of more than Rupees One Crore.
\nAdditional submission by Jurisdictional Officer dated 21.05.2018
\nThe applicant requires advance ruling on two issues viz.-
\na) Whether exemption provided in Sr.No.54 (e) to Notfn No. 12\/2017-CentraI Tax (Rate) is applicable to the activity carried out by the company?
\nb) Applicability of Exemption for the activity of providing Services in the nature of warehousing for loading, unloading, packing, storage or warehousing of agriculture produce?
\nIssue No. 1 – In this issue, the assessee is asking whether exemption provided in Sr.No.54 to the Notfn No. 12\/2017-C.T. (Rate) is applicable to the activities carried by the company.
\nIn thi<\/p>\n
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\nii) High Court Decision in the case of Brook Bond Lipton India Ltd. Vs State of Karnataka 109 STC 265 in which it was stated that packing led to value addition for the purpose of excise and sales tax and that it was a possible view that packaged blended tea produced in the Industrial unit of the appellant is a manufactured product in which packing material are inputs.
\nThe contents of the exemption in Sr.No.54 of Notfn No. 12\/2017 dated 28.06.2017 are as under
\nSr. 54 -Services relating to cultivation of plants and rearing of all life forms of animals, except the reading of horses, for foods, fibre, fuel, raw material or other similar products or agricultural produce falling under Chapter 9986 by way of-
\n(a) to (d)
\n(e) Loading, unloading<\/p>\n
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\nThis Circular is also in consonance with the above referred judgments.
\nIn view of the above, Applicant's Question whether exemption provided in Sr.No.54 (e) to Notfn. No. 12\/2017-CentraI Tax (Rate) is applicable to the activity carried out by the company can be answered in the Nagative.
\n5. ISSUE No.2- The Second issue on which applicant sought Advance Ruling is “Applicability of Exemption for the activity of providing Services in the nature of warehousing for loading, unloading, packing, storage or warehousing of agriculture produce”
\nThe propriety of the asking Advance Rulling in respect of this Question is not understood since from the facts described by the applicant in his application, it appears that he is only storing tea manufactured by M\/s. Unilever India Export Ltd, which is branded and packed and ready for distribution for tertiary market which is mainly 100% export market. There<\/p>\n
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\nIssue-Assessee, agriculturist and having owned Tea Garden grown tea leaves on his own land, after carrying out some kind of process or treatment, tea is sold therefore the sale of tea effected by him was exempted from sales tax under the proviso to the Act. The Sales Tax authorities rejected the assesee 's contention.
\nDecision-While giving decision High Court held that sales of tea leaves were not exigible to sale tax. The commodity which was sold was not different from the commodity therefore the proviso to Sr.2 (i) of the Act is attracted.
\nThe decision given in the above case is relating to exemption from payment of sale Tax allowed to Agriculturist of Tea, whereas in applicant's case, the applicant is providing Services to the manufacturing Tea unit registered as 100% EOU, hence the same decision is not applicable as the tea is manufactured goods classified under CSH 0902 under Head “Tea whether or not f<\/p>\n
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\nc) The decision of Supreme Court in the case of Commissioner of C. Ex. Bolpur Vs. Ratan Melting and Wire Industries
\nIssue-Departmental Clarification vis-a-vis court Decision Binding nature of Circulars Contrary to Statutory Provisions having no Existence in law
\nDecision-wherein it has been held that a circular which is contrary to the statutory provision has really no existence in law. It is for the court to declare what the particular provisions of Statute Says and it is not for the Executive. Since CBECs Circular is in consonance with the provision of CGST\/SGST Act, the ratio of Ratan Melting and Wire Industries is not applicable in the facts of applicant's case.
\nOn going through the letter dated 11.05.2018 submitted by the applicant to Advance Ruling Authority along with the letter of M\/s. Unilever Export dated 9.7.2014 mentioning the d<\/p>\n
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\nThe application was admitted and called for final hearing on 24.04.2018, Sh. Suresh Singh C.A along with Sh. Chanshayam L Navalakha, Director and Sh. Bhushan Patil, C.A. appeared and written submissions and orally contended as per their written submissions. They were orally to give details of exact nature of product that was being stored, including photographs of the product, sample of bags in which it was stored along with markings or detail<\/p>\n
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\n54
\nHeading 9986
\nServices 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
\n(a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;
\n(b) supply of farm labour;
\n(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun dryings fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential c<\/p>\n
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\n (g) “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, fiber, 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;
\nIn view of the above, we are required to ascertain if the goods being stored by M\/s. Unilever India Export Ltd., in the warehouse of applicant would fall in the definition of 'Agricultural produce' as given above. To ascertain the exact nature of goods being stored in warehouse. we find that a letter received by the applicant from M\/s. Unilever dated 09.07.2014 gives the details about the exact nature <\/p>\n
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\nAssembly of Raw material as per Bled Order
\nCross checking of assembled Tea
\n5.
\nTipping of Tea over Magnetic Grid
\nInspection while tipping
\n6.
\nConveying under closed condition
\n
\n7.
\nVibratory sieving
\nPerforated Mesh : 3 mm
\n8.
\nConveying thru bucket elevator to feed hopper
\n
\n9.
\nTransferring teas to Blend Drum & Blending
\nUnder covered condition
\n10.
\nConveying and drawing Blended Tea into Mobile Storage Hopper
\nClosed Hopper, Blended tea checked for sensorial and other Lab clearance
\n11.
\nPlacing Mobile Hopper on machine chute having Mesh and Magnetic Grid
\n5000 Gauss Strength.
\n12.
\nFilling tea into Tea bags on Constanta Machine
\n
\n13.
\nAuto filling of Tea bags into Inner carton
\nOnline Quality checks for Tea bag Quality
\n14.
\nOn line Lid closing of Inner carton
\n
\n15.
\nOn line Laser Coding on Inner carton
\n
\n16.
\nOn line over wrapping of <\/p>\n
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\nThus, we find that the goods being stored in the applicant's godown are not agricultural produce as per definition given in Notification No.12\/2017-Central Tax (Rate) dated 28th June, 2017 and the same is reiterated by Board Circular No. 16\/16\/2017-GST issued under F No. 354\/173\/2017-TRU dated 15.11.2017,
\n05. In view of the extensive deliberations as held hereinabove, we pass an order as follows :
\nORDER
\n(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nNO.GST-ARA-30\/2017-18\/B-38
\nMumbai, dt. 23.05.2018
\nFor reasons as discussed in the body of the order, the questions are answered thus –
\nQuestion 1. Whether Exemption provided in s<\/p>\n
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