Case Law Details
In re Vivek V. Ratnaparkhi- M/s. Madhurya Chemicals (GST AAR Maharashtra)
A. Whether the classification of ‘Shatamrut Chyavan’ falling under TSH 2309 90 10 of Customs Tariff Act, 1975 as adopted to GST attracting ‘NIL’ rate (0%) of IGST (0%) CGST + (0%) SGST) as per List of Exempted Goods as per Sr. No. 102 of Notification No. 02/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not?
Applicant has raised the issue of classification of their product namely, ‘Shatamrut Chyavan’. The subject product is manufactured out of sugarcane molasses, which is the major ingredient. Applicant is also adding other ingredients along with sugarcane molasses in the subject product, to increase the nutritional value of the sugarcane molasses. Applicant has been classifying the impugned product under Chapter No. TSH 2309 90 10, attracting ‘NIL’ rate of GST and now wants to classify the same under Chapter 2303 of the Customs Tariff Act, 1975 as adopted by GST Tariff. The reason put forth by the applicant to classify the subject product under Chapter Heading 2303 is that the said product is only a nutritional supplement to the cattle feed and cannot be considered as cattle feed in isolation.
The subject product is a complete animal feed supplement manufactured out of molasses mixed with 15 other ingredients to increase the nutrition value of the feed supplement. From the submissions made by the applicant and view of the above Chapter Notes, we find that the subject product is nothing but prepared animal feed and therefore the same would fall under the said Chapter Heading 23.09.
We agree with the jurisdictional officer that the classification of the subject product under TSH 2309 90 10 of Customs Tariff Act, 1975 is correct. We also agree with the submissions of the jurisdictional officer that the subject product is capable of specific use as food supplement for animals & not capable of any general use.
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