Page 117 - GSTL_27th August 2020_Vol 39_Part 4

2020 ] IN RE : VIVEK V. RATNAPARKHI 443
Jurisdictional Officer Shri Abhijit Padekar, S.T.O. (C-012) Ahmednagar also ap-
peared and made written submissions.
The application was admitted and called for final hearing on 22-1-2020.
Shri Devendra Aathavle Advocate appeared, made oral and written submissions.
The Jurisdictional Officer Shri Abhijit Padekar, S.T.O. (C-012) Ahmednagar also
appeared and made written submissions.
5. Discussions and findings :
5.1 We have gone through the facts of the case, documents on record
and submissions made by both, the applicant as well as the jurisdictional officer.
Applicant has raised the issue of classification of their product namely,
‘Shatamrut Chyavan’.
5.2 The subject product is manufactured out of sugarcane molasses,
which is the major ingredient. Applicant is also adding other ingredients along
with sugarcane molasses in the subject product, to increase the nutritional value
of the sugarcane molasses. Applicant has been classifying the impugned product
under Chapter No. TSH 2309 90 10, attracting ‘NIL’ rate of GST and now wants
to classify the same under Chapter 2303 of the Customs Tariff Act, 1975 as
adopted by GST Tariff. The reason put forth by the applicant to classify the sub-
ject product under Chapter Heading 2303 is that the said product is only a nutri-
tional supplement to the cattle feed and cannot be considered as cattle feed in
isolation.
5.3 Chapter 2303 of the Customs Tariff Act, 1975 as adopted by GST
Tariff covers “Residues and waste from the sugar industries.
5.3.1 General Note to Chapter 23 is as follows :-
“This Chapter covers the various residues and wastes derived from vegeta-
ble materials used by food-preparing industries, and also certain products
of animal origin. The main use of these products is as animal feeding stuffs,
either alone or mixed with other materials, although some of them are fit
for human consumption”.....
5.3.2 Note 1 to Chapter 23 states that
“Heading 23.09 includes products of a kind used in animal feeding, not
elsewhere specified or included, obtained by processing vegetable or ani-
mal materials to such an extent that they have lost the essential characteris-
tics of the original material, other than vegetable waste, vegetable residues
and by-products of such processing”.
5.3.3 Explanatory Notes to the Harmonized System states that Chapter
Heading 23.09 covers sweetened forage and prepared animal feeding stuffs consisting of a
mixture of several nutrients designed : (1) to provide the animal with a rational and bal-
ance daily diet (complete feed); (2) to achieve a suitable daily diet by supplementing the
basic farm produced feed with organic or inorganic substances (supplementary feed); and
(3) for use in making complete or supplementary feeds. The Explanatory Notes further
states that “The Heading includes products of a kind used in animal feeding, obtained by
processing vegetable or animal materials to such an extent that they have lost the essen-
tial characteristics of the original material”.
5.3.4 The Explanatory Notes at (I) under Chapter 23.09 states that
“Sweetened Forage is a mixture of molasses or other similar sweetening substances (gen-
erally more than 10% by weight), with one or more other nutrients. It is used mainly for
GST LAW TIMES  27th August 2020  117