Page 118 - GSTL_14th May 2020_Vol 36_Part 2

220 GST LAW TIMES [ Vol. 36
misconception of the nature of services being provided, inasmuch as, it is sub-
clause (c) of clause (i) of the Explanation which requires processes to be carried
out at an agricultural farm; whereas, sub-clause (e) does not contain any such
prescription.
26. According to the respondents, there are separate exemption entries
for transportation of agricultural produce and for transportation of milk [Serial
Nos. 20 and 21) of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017].
In this regard, a perusal of Serial No. 20 of the said notification indicates that the
same relates to services by way of transportation by rail or a vessel from one
place in India to another of the goods enumerated thereunder. The present case
does not relate to transportation of goods by rail or by a vessel and hence, refer-
ence to the said entry is also misconceived. The entry at Serial No. 21 relates to
services provided by a goods transport agency, by way of transport in a goods
carriage of the goods listed thereunder. The present case relates to providing ser-
vices of storage and packing and not transportation and hence, no reliance can be
placed on the said entry.
27. In the impugned circular, it is also stated that chilling and packing
is not exempt from GST inasmuch as 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% and therefore, the activity of chilling and packaging of milk provided by way
of job work attracts levy of GST @ 5%. In this regard, this Court is of the view
that the levy of 5% GST on job work on food and food products falling under
Chapters 1 to 22 would be attracted if the services provided are not “support
services” as contemplated under clause (i) of Heading 9986 at Serial No. 24 of the
Table to Notification No. 11/2017, dated 28-6-2017.
28. In the light of above discussion, the Court is of the view that the in-
terpretation given by the respondents to the activities of chilling and packing of
milk as contained in the impugned letter/circular dated 9-8-2018 is not in conso-
nance with the provisions contained in Serial No. 24 of the Table to Notification
No. 11/2017, dated 28-6-2017 and, therefore, the impugned letter/circular cannot
be sustained.
29. For the foregoing reasons, the petition succeeds and is accordingly
allowed. The impugned Letter/Circular F. No. 354/292/2018-TRU, dated 9-8-
2018 (Annexure-F to the petition) issued by the Government of India, through
the Tax Research Unit, New Delhi, is hereby quashed and set aside. It is hereby
held that milk chilling and packing service provided by the contractors to the
petitioners are exempted by virtue of Serial No. 24 of the table to Notification No.
11/2017-Central Tax (Rate), dated 28-6-2017 (Annexure-D to the petition).
30. Insofar as the relief claimed for returning of the amount recovered
and collected from the petitioners through their contractors as GST on milk
chilling and packaging service, the petitioner may move appropriate application
for refund in accordance with law.
31. Rule is made absolute accordingly to the aforesaid extent with no
order as to costs.

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GST LAW TIMES  14th May 2020  118