Case Law Details
In re Sanstar Biopolymers Limited (GST AAR Gujarat)
The product ‘Maize Bran’ manufactured and supplied by the applicant is not a ‘cattle feed’ and hence, is not covered under Entry at Sr.No.102 of the Notification No.2/2017-Central Tax (Rate) dated 28.06.2017, as amended. But, it will fall under the Entry at Sr.No.103A of the Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, as amended and is chargeable to GST @ 5% (2.5% CGST + 2.5% SGST).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, (Gujarat)
The applicant, vide their application for Advance Ruling, has submitted that they are engaged in the manufacture and taxable supply of Maize starch and its derivatives in their plant at Village-Morgar, Taluka- Himatnagar, Bhachau, Kutchh, Gujarat.
2. The applicant further submitted that in the course of manufacture, Maize Bran is produced by corn wet milling which is a by-product and is sold as cattle feed; that Bran is the hard-outer layers of cereal grain and along with germ, it is an integral part of whole grains and is often produced as a byproduct of milling during the production of refined grains; that Maize Bran is one such inevitable by-product of various maize processing industries; that the production of Maize Bran amounts to 13% of the total production of the applicant and is found in three different forms: (a) Maize Bran dry (b) Maize Bran wet (c) Maize Bran(CSL mixed); that Maize Bran theoretically consists of the bran coating removed in the early stages of wet milling; that Maize Bran is composed of approximately 12-25% starch, 10-13% protein, 33-42% hemicelluloses, 15-18% cell cellulose, 3-6% oil, and 1-2% other components; that maize bran stream coming from dewatering presses contains about 30 to 50% solids; that the maize bran is usually a mixture of the bran fraction and other by-products and is, therefore, a very loosely defined product of highly variable composition usually sold as a major ingredient for cattle feed; that the applicants supply Maize Bran as feed commodities to local farmers and even manufacturers engaged in manufacturing cattle feed who often mix maize bran with other maize processing by-products.
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