In re C.P.R. Mill (GST AAR Tamilnadu)
Classification of ‘Cattle Feed in Cake Form’ and exemption if any
The product ‘Cattle feed in cake form’ manufactured by the Applicant is classifiable under Chapter Heading 23099010 and stands exempted as per vide SI.No. 102 of Notification No. 2/2017-Central Tax(Rate) dated 28th June 2017 as amended and SI.No. 102 of Notification. No.ll(2)/CTR/532(d-5)/2017 dated 29th June 2017 as amended and in case of interstate supplies vide SI.No.102 of Notification No. 2/2017-lntegrated Tax(Rate) dated 28th June 2017 as amended.
FULL TEXT OF ADVANCE RULING
Note : Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
1. M/s. C.P.R. Mill (Prop: ARUMUGA SELVA RAJA JEGAJOTHI), No. 2/1, Sathanur Road, Vikravandi (West), Villupuram (hereinafter called as CPR Mill or the Applicant) is engaged in the manufacture of “Cattle Feed in Cake Form”. They are registered under GST Act with Registration No. 33ATKPJ5015FI1ZX. The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and TNSGST Rules 2017. They have sought classification of “Cattle Feed in Cake Form” manufactured by them under the SGST Act and CGST Act and availability of exemption under GST Act.
2. M/s. CPR Mill has stated that the cattle feed is manufactured from the groundnut oil cake along with a list of ingredients including husked rice with broken rice, black & broken rice, jaggery, salt and water. It is stated that the cattle feed which is being sold is meant for domestic animals as an essential raise for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes such as re-production, for production of milk meat and wool and in the case of animals, also for efficient output of work. The Applicants have produced the certificates of analysts of the product manufactured by them which is sold as “cattle feed” Cake Form, duly issued by the Department of Animal Institution, Veterinary College and Research Institute, Orathanadu, Thanjavur, both in respect of cattle feed Cake Form and groundnut oil cake. Additionally, a test report from the CSIR – Central Food Technological Research Institute, Mysore was also procured by the Applicant. The applicant has stated that there is a considerable difference in composition of the Applicant’s cattle feed (in cake form) and that of groundnut oil cakes.
2.1 M/s. CPR Mill has stated that as per the proceedings of the Authority for Clarification and Advance Ruling of the Commercial Taxes Department, Government of TamilNadu (in its proceedings dated 02.06.2017 in A.C.A.A.R. No. 54/2016-17), it is clarified that Aquatic feed/ Animal feeds are not liable to tax vide Entry No.5 of Part B of the Fourth Schedule to TNVAT Act, 2006 with effect 01.01.2007 and it was also clarified that they are not entitled to claim input tax credit of the tax paid on the purchase of raw materials as per Section 19(5) of the TNVAT Act, 2006. M/s. CPR Mill has further stated that under the CGST Act, as per Section 9 of the Central Goods and Services Tax Act, 2017, oil cakes are classified under Chapter Heading/sub-heading/Tariff Item – 2305 liable to be taxed at the rate of 2.5% falling under Schedule I vide Notification No. 1 of 2017 in Serial No. 106; Under the CGST Act, as per Section 11 of the Central Goods and Services Tax Act, 2017, cattle feed is classified under Chapter Heading/sub-heading/Tariff Item – 2309 which is exempted for intrastate supplies of goods as under Schedule vide Notification No. 2 of 2017 in Serial No. 102.
3. The Authorized Representative of the Applicant was heard in the matter. They submitted that the raw material is groundnut oil cake and submitted invoice, test reports of both raw material and output / cattle feed and manufacturing process flowchart. They also provided video clipping of manufacturing process and costing details of the product.
4. The details and documents furnished were examined. From the various submissions of the applicant, it is seen that the product under consideration, ‘Cattle Feed in Cake Form’ is manufactured by pulverizing Groundnut oil cake, husked rice with broken and black broken rice pulverized separately, which are spread over and then jaggery, salt & water are added, mixed, thoroughly crushed and left for condensing itself into solid form and steamed to result in ‘Cattle feed in Cake Form’. The breakup of the ingredients for manufacturing cattle feed (in cake form) per 100 Kgs as given by the applicant is as follows:
