Advance Ruling disallowed exemption for Loading and Packing services on Imported Wheat .

Published On :- 03-02-2024

 

 

 

Held that the impugned order holding that services of loading, unloading, packing etc., rendered in relation to the wheat imported is not entitled to exemption in terms of S.No.54(e) of Notification No.12/2017 on the premise that the imported wheat is not meant for primary market as such but it is intended to be converted into maida, sooji, atta, etc., in the hands of the recipient i.e., the petitioner, is unsustainable.

On  reading  the definition of “agricultural produce”, all that it does is to identify the nature of the product that would be covered while also including certain processes which does not alter the essential character as an “agricultural produce” but merely makes it marketable for the primary market. The petitioner’s entitlement to exemption must be determined by testing whether the services of loading, unloading, packing, storage or warehousing is rendered to agricultural produce or other than “agricultural produce” and not on the basis of the process the agricultural produce is meant to be subject to in the hands of petitioner/ importer.

{Naga Ltd. Vs. Puducherry Authority for Advance Ruling – W.P. No.2851 of 2021 and W.M.P. Nos.3185 and 3187 of 2021 PRONOUNCED ON 10.11.2023 – Madras High Court}

 

 

The copy of the order is as under:

Naga-Ltd.-Vs-Puducherry-Authority-for-Advance-Ruling-Madras-High-Court

 

From,

Krishnakant Jakhotia

Mobile No:-9422507911

Email Id :- taxtalknew@gmail.com