Case Law Details
In re Ramu Chettiar Srinivasan (GST AAR Tamilnadu)
The issue before us is to determine the classification of — “Cattle Feed in Cake form” and as to whether the same is exempted. In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
To be precise, the question to be answered is whether the product is classifiable under CTH 2305 or under CTH 2309.
It is seen from the explanatory notes that the residue remaining after extraction of oil from groundnuts are to be classified under CTH 2305. Going by the chapter heading notes, it can be seen that Chapter Head 2309 covers products of a kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material. From the submissions of the applicant, it is seen that the product is not merely groundnut oil cake/residue but is manufactured by combining groundnut oil cake with broken rice, jaggery, salt and water and leaving the mixture for condensing itself into solid form and finally steamed. Further, the applicant states that the product is meant for domestic animals as an essential raise for the maintenance of life and 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, eggs, meat, wool and in the case of animals, also for efficient output of work. The product in hand, the ‘Cattle feed’ is manufactured using ‘Groundnut oil cake’ as a raw material along with other raw materials. Further, as per the test reports, the content of ash, protein, salt, fat, moisture, calcium, phosphorous etc in a sample of groundnut oil cake vary in percentage from a sample of the product as furnished by the applicant in the test reports furnished by them. Also, from the invoices raised by them the product is identified as ‘Cattle feed’ and not as `groundnut oil cake’. By applying the General rules for interpretation of Customs Tariff as applicable to GST Tariff, the product in hand is correctly classifiable under Chapter Heading 2309 of the GST Tariff as ‘Preparation of a kind used in Animal Feeding’- ‘Compounded animal feed, 2309 90 10. The same is exempted in case of intra-state supplies vide sl.no. 102 of Notification No. 2/2017-Central Tax(Rate) dated 28th June 2017 as amended and sl.no. 102 of Notification. No.II(2)/CTR/532(d-5)/2017 dated 29th June 2017 as amended and in case of interstate supplies vide Sl.No.102 of Notification No. 2/2017-Integrated Tax(Rate) dated 28th June 2017 as amended.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMILNADU
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