Case Law Details
In re M. Narasimha Reddy & Sons (GST AAR Telangana)
The applicant is supplying goods which are produce of cultivation of plants. However they are of seed quality and not grain, therefore further they are not meant for food, fibre, fuel or raw material for further processing. In the definition of agricultural produce, the word ‘raw material’ is used which is a general word and is in the company of specific words i.e., food, fibre and fuel. These specific words indicate direct consumption by human or in industry but not in cultivation.
The Hon’ble Supreme Court of India in the case of Godfrey Philips India Vs State of U.P 2005 (139) STC 537, held that when 2 or more words susceptible of analogous meaning are clubbed together, they are understood to be used in their cognate sense. They take, as it were, their colour from and are qualified by each other, the meaning of the general word being restricted to a sense analogous to that of the less general. In this case, it was held that even in case of inclusive definition, principle of noscitur a sociis can be applicable.
Applying this rule to the present facts, supply of seed does not fall under the definition of agricultural produce as the seed does not fulfill the utilities prescribed therein.
Similarly the said definition restricts the ‘agricultural produce’ to unprocessed goods. Further even if ‘processing’ is done it should be ‘such processing’ as done by a ‘cultivator’ for ‘primary market’. Essentially processed agricultural products do not fall under this definition. If any processing is done it should be on an equal footing to that done by a “cultivator for primary market” i.e., processing made by a farmer for agricultural mandi. Even if the farmer does any different processing such produce will not fall under this definition.
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Wonderful logic indeed !!!!! How does one grow food without seeds? After all after harvesting only SEEDS are preserved and sold. I wish all these Officials be given land in lieu of the Salary to know the difficulties of a Farmer. Sitting in A/c comfort, they come to such BEUTIFUL DECISIONS !!!!!!!!!!!