In re Shri Sai Pest Control (GST AAR Gujarat)
The applicant has claimed that they are providing service of fumigation to the custom bonded warehouse where in agri produce of export are stored. It means that all the such agri produce which are going to be exported before storing in bonded warehouse have been processed further by the exporter to make the said agri product to become exportable. Hence subsequent process on agri produce leading to value addition and further export to out of the country belong to secondary market, do not cover under the category of “Agricultural Produce” as defined in Notification. Further, the applicant in their application has not elaborated what types of the agri produce are stored in custom bonded warehouse. Therefore, during the course of Personal hearing it was requested to the applicant to submit the copy of agreement entered between them and customer so that it can be concluded that whether the only agri produce as defined in the definition of explanation 2(d) of the Notification No. 12/2017-CT (Rate) dated 28.06.2017 are stored in custom bonded warehouse or otherwise. However, the applicant failed to submit copy of any agreement entered between them and their customer.
Accordingly, in view of the above discussion we are of the view that in the custom bonded warehouse agri produce stored for export do not cover under the definition given under explanation 2(d) of Notification No. 12/2017-CT (Rate) dated 28.06.2017. Further, in absence of any facts on the records we are not in position to conclude that the custom bonded warehouse are used exclusively only for storage of agriculture produce and are not used for storage of non agriculture produce. We have further observed that applicant in his application has submitted that in the custom bonded warehouse imported agri produce are also stored. The imported produce has been procured from the farmers in the foreign and exported to India. Clearly, it is, whether processed in a mill, no longer in the domain of the primary market or at the farmer’s hand. Hence in view of the aforesaid discussion we concluded that the fumigation service provided by the applicant in custom bonded warehouse where in exported and imported agriculture produce are stored is not covered under Sl. No. 54(h) of the Exemption Notification No. 12/2017-CT (Rate) dated 28.06.2017, therefore, applicant service is liable to GST.
we refer the relevant entry No. 420 of Annexure to the Notification No. 11/2017-CT (Rate) dated 28.06.2017 of SAC 99853 and same is produced as under :
