Page 113 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : MAGNAM NETLINK PVT. LTD. 351
(c) Supply pertaining to mechanised food grain handling system, machinery
or equipment for units processing agricultural produce as food stuff excluding
alcoholic beverages’.
14.7 We find that the above discussed goods namely Pouch Filling Ma-
chine with online pouch coding machine of Make-Domino, as submitted by the appli-
cant, is to be used for packing the milk. This process is to take place after the milk
has already gone under various processes of filtration, straining, chilling, pas-
teurizing, cream processing, standardising etc.
14.8 Agricultural Produce is defined under clause (vii) of Paragraph 4 of
Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 as under :
[(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 material or other similar products, on which either no
further processing is done or such processing is done as is usually done by a culti-
vator or producer which does not alter its essential characteristics but makes it
marketable for primary market;]
14.9 We find that Agricultural Produce shall not include further pro-
cessed produce other than such processing is done by a cultivator or producer
which does not alter its essential characteristics. Therefore the milk on which
processes have been carried out by other than a cultivator or a producer shall not
fall under Agricultural Produce. The milk when brought to process by the said
Pouch Filling Machine would have already gone under various processes of filtra-
tion, straining, chilling, pasteurizing, cream processing, standardising curding
etc. and the essential characteristics of milk would have been already altered.
Therefore the said machinery cannot be said to be used for processing agricul-
tural produce.
15. Thus we come to the conclusion that the supply of Pouch Filling
Machine with online pouch coding machine of Make-Domino, as well as other
supplies of civil work and electro-mechanical work will NOT fall under Entry
No. (v)(f) of Sr. No. 3 of the table under Notification No. 11/2017-Central Tax
(Rate) as amended by Notification No. 20/2017-Central Tax (Rate).
16. In view of the foregoing, we rule as under -
RULING
17. The Notification No. 20/2017-Central Tax (Rate), dated 22nd Au-
gust, 2017 that covers the Composite supply of works contract as defined in
clause (119) of Section 2 of the Central Goods and Services Tax Act, 2017, sup-
plied by way of construction, erection, commissioning, or installation of original
works pertaining to mechanised food grains handling system, machinery or equipment
for units processing agricultural produce as food stuff excluding alcoholic beverages,
DOES NOT COVER the supplies made or to be made by the applicant under
work order issued by M/s. Bihar State Milk Cooperative Federation Ltd., Patna,
vide No. COMFED:EGG:317:Vol-VIII/1787, dated 9-5-2018 for the reasons dis-
cussed hereinabove.

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GST LAW TIMES  16th July 2020  113