Page 116 - GSTL_14th May 2020_Vol 36_Part 2

218 GST LAW TIMES [ Vol. 36
are “support services to agriculture, forestry, fishing, animal husbandry”. The
Explanation to clause (i), to the extent the same is relevant for the present pur-
pose, reads thus :
Explanation. - ‘Support services to agriculture, forestry, fishing, animal hus-
bandry’ mean.
(i) Services relating to cultivation of plants and rearing of all life forms of
animals except the rearing of horses, for food, fibre, fuel, raw material or
other similar products or agricultural produce by way of -
(a) xxx
(b) xxx
(c) processes carried out at an agricultural farm including tend-
ing, pruning, cutting, harvesting, drying, cleaning, trimming,
sun drying, fumigating, curing, sorting, grading, cooling or
bulk packaging and such like operations, which do not alter
the essential characteristics of agricultural produce but make it
marketable for the primary market.
(d) xxx
(e) loading, unloading, packing, storage or warehousing of agri-
cultural produce.”
20. Note 4 below the notification, to the extent the same is relevant for
the present purpose, reads thus :-
“Note 4 - For the purposes of this notification :-
(vii) ”agricultural produce” means any produce out of cultivation of
plants and rearing of all life forms of animals, except the rearing of
horses, for food, fibre, fuel, raw materials or other similar products,
on which either no further processing is done or such processing is
done as is usually done by a cultivator or producer which does not al-
ter its essential characteristics but makes it marketable for primary
market.”
As noted earlier, the above notification was brought into force from 1-7-2017.
21. Since the letter/circular dated 9th August, 2018 issued by the Re-
spondent No. 2 namely, Tax Research Unit of the Government of India, Ministry
of Finance, Department of Revenue, is subject matter of challenge in the petition,
it may be germane to refer to the said circular. A perusal of the impugned circu-
lar shows that it has been issued in the context of the subject : GST on job work
charges for chilling and packing of milk. Paragraphs 3 to 5 of the circular read
thus :
“3. Chilled and packed milk for retail sale is not covered by the definition
of ‘agricultural produce’ as the process of chilling and retail packing of milk
are usually not done by a cultivator or producer. This is the reason why
separate exemption entry exists for ‘transportation of agricultural produce’
and for ‘transportation of milk [S. Nos. 20 and 21 of Notification No.
12/2017-Central Tax (Rate), dated 28-6-2017as refer]. The processes of
chilling and packing are not processes carried out at an agricultural farm.
4. Thus, chilling and packing of milk is not exempt from GST. Services by
way of job work in relation to all food and food products falling under
Chapters 1 to 22 attract levy of GST @ 5% [S. No. 26 (i)(f) of Notification No.
GST LAW TIMES  14th May 2020  116