Cattle feed in cake form would be exempt-AAR Tamil Nadu

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Cattle feed in cake form would be exempt-AAR Tamil Nadu

Cattle feed in cake form would be exempt-AAR Tamil Nadu

Facts of the case:

  1. M/s. C.P.R. Mill is engaged in the manufacture of “Cattle Feed in Cake Form”. 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.
  3. lt 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.
  4. 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.
  5. 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, cattle feed is classified under Chapter Heading/sub-heading/Tariff ltem – 2309 which is exempted for intrastate supplies of goods as under Schedule vide Notification No. 2 of 2017 in Serial No. 102

Held:

  1. Authority has observed the Harmonised System of Nomenclature (HSN) Explanatory Notes 2077, the chapter notes for Chapter 23 and specifically heading 2305 and 2309 has been examined.
  2. Authority has also observed 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.
  3. 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.
  4. Further, the applicant states that the product is meant for domestic animals or birds 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 reproduction, for production of milk, eggs, meat, wool or feathers 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.
  5. 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’.
  6. 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.
  7. The same is exempted in case of intra-state supplies vide sl.no. 702 of Notification No. 2/2077-Central Tax (Rate) dated 28th June 2O17 as amended and Sl.No. 102 of Notification. No.ll(2)/cTR/532(d-5)/2oI7 dated 29th June 2oI7 as amended and in case of interstate supplies vide Sl.No.102 of Notification No. 2/2}L7-lntegrated Tax(Rate) dated 28th June 2077 as amended.
  8. “The product ‘Cattle feed in cake form’ manufactured by the Applicant is classifiable under Chapter Heading 23099010 and stands exempted

 

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